Taxes on Income

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Taxes on Income

TAXES ON INCOME:

The following tables summarize the Company’s income taxes for the periods presented:

	Successor			Predecessor
	Three months ended September 30, 2012			Three months ended September 30, 2011
Current expense (benefit):
Federal	$	(419	)	$	(745	)
State	2,272			(143		)
Total	1,853			(888		)
Deferred expense:
Federal	25,742			21,903
State	1,364			3,431
Total	27,106			25,334
Total federal and state income tax expense	$	28,959		$	24,446
Effective tax rate	63		%	30		%

	Successor			Predecessor
	Period from Acquisition (March 26, 2012) to September 30, 2012			Period from January 1, 2012 to March 25, 2012			Nine months ended September 30, 2011
Current expense (benefit):
Federal	$	(419	)	$	—		$	(572	)
State	2,754			5			(7,629		)
Total	2,335			5			(8,201		)
Deferred expense:
Federal	23,928			19,861			70,507
State	1,620			3,005			6,370
Total	25,548			22,866			76,877
Total federal and state income tax expense	$	27,883		$	22,871		$	68,676
Effective tax rate	154		%	31		%	28		%

In the predecessor period, the Company’s EITR was generally lower than the U.S. federal income tax statutory rate of 35% primarily due to the expected deductions for the anticipated receipt of dividends associated with earnings from the Company’s unconsolidated investment in Citrus.  In the successor period, the earnings from Citrus and the related dividends received deductions will no longer be applicable because of the Company’s contribution of its unconsolidated investment in Citrus to ETP, a subsidiary of ETE.  In the successor period, the Company’s EITR was impacted by non-deductible excess parachute payments resulting from Merger-related employee severance expenses.