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Provision for Income Taxes | 12 Months Ended
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Dec. 31, 2012
Provision for Income Taxes [Abstract] |
Provision for Income Taxes | Note 16. Provision for Income Taxes Provision for income taxes primarily reflects our state tax obligations under the Revised Texas Franchise Tax (the "Texas Margin Tax"). Deferred income tax assets and liabilities are recognized for temporary differences between the assets and liabilities of our tax paying entities for financial reporting and tax purposes. During the year ended December 31, 2012, we recognized an overall net income tax benefit of $17.2 million, which was primarily due to a $45.3 million net income tax benefit related to the conversion of certain of our subsidiaries to limited liability companies, partially offset by accruals for the Texas Margin Tax. The $45.3 million net income tax benefit is attributable to the difference between deferred income taxes accrued by the applicable subsidiaries through the date of conversion and any current income tax due in connection with the conversions. Our federal and state income tax provision (benefit) is summarized below:
|  | For Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 18.9 |  |  | $ | (4.0 | ) |  | $ | 2.2 |
State |  |  | 28.9 |  |  |  | 18.9 |  |  |  | 16.0 |
Foreign |  |  | 1.2 |  |  |  | 0.2 |  |  |  | -- |
Total current |  |  | 49.0 |  |  |  | 15.1 |  |  |  | 18.2 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (64.7 | ) |  |  | 11.5 |  |  |  | 5.3 |
State |  |  | (1.4 | ) |  |  | 0.8 |  |  |  | 2.9 |
Foreign |  |  | (0.1 | ) |  |  | (0.2 | ) |  |  | (0.3 | )
Total deferred |  |  | (66.2 | ) |  |  | 12.1 |  |  |  | 7.9 |
Total provision for (benefit from) income taxes |  | $ | (17.2 | ) |  | $ | 27.2 |  |  | $ | 26.1 |
A reconciliation of the provision for (benefit from) income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:
|  | For Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Pre-Tax Net Book Income ("NBI") |  | $ | 2,410.8 |  |  | $ | 2,115.5 |  |  | $ | 1,409.8 |
Texas Margin Tax (1) |  | $ | 23.5 |  |  | $ | 19.1 |  |  | $ | 18.3 |
State income taxes (net of federal benefit) |  |  | 5.3 |  |  |  | 0.5 |  |  |  | 0.4 |
Federal income taxes computed by applying the federal statutory rate to NBI of corporate entities |  |  | (1.6 | ) |  |  | 5.0 |  |  |  | 8.0 |
Valuation allowance |  |  | (2.0 | ) |  |  | (0.2 | ) |  |  | -- |
Expiration of tax net operating loss |  |  | 2.4 |  |  |  | 0.2 |  |  |  | -- |
Tax gain on conversion of corporate subsidiaries into limited liability companies |  |  | (45.3 | ) |  |  | -- |  |  |  | -- |
Other permanent differences |  |  | 0.5 |  |  |  | 2.6 |  |  |  | (0.6 | )
Provision for (benefit from) income taxes |  | $ | (17.2 | ) |  | $ | 27.2 |  |  | $ | 26.1 |
Effective income tax rate |  |  | (0.7 | )% |  |  | 1.3 | % |  |  | 1.9 | %
(1) Although the Texas Margin Tax is not considered a state income tax, it has the characteristics of an income tax since it is determined by applying a tax rate to a base that considers our Texas-sourced revenues and expenses. |
The following table presents the significant components of deferred tax assets and deferred tax liabilities at the dates indicated:
|  | At December 31, |
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryovers (1) |  | $ | 0.2 |  |  | $ | 17.8 |
Employee benefit plans |  |  | 0.1 |  |  |  | 3.0 |
Deferred revenue |  |  | -- |  |  |  | 1.5 |
Equity investment in partnerships |  |  | -- |  |  |  | 0.9 |
AROs |  |  | -- |  |  |  | 0.1 |
Accruals |  |  | 1.5 |  |  |  | 1.6 |
Total deferred tax assets |  |  | 1.8 |  |  |  | 24.9 |
Valuation allowance (2) |  |  | -- |  |  |  | 2.0 |
Net deferred tax assets |  |  | 1.8 |  |  |  | 22.9 |
Less: Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | 23.7 |  |  |  | 112.1 |
Equity investment in partnerships |  |  | 0.6 |  |  |  | -- |
Total deferred tax liabilities |  |  | 24.3 |  |  |  | 112.1 |
Total net deferred tax liabilities |  | $ | 22.5 |  |  | $ | 89.2 |
Current portion of total net deferred tax assets |  | $ | -- |  |  | $ | 2.0 |
Long-term portion of total net deferred tax liabilities |  | $ | 22.5 |  |  | $ | 91.2 |
(1) These losses expire in various years between 2013 and 2028 and are subject to limitations on their utilization. (2) We record a valuation allowance to reduce our deferred tax assets to the amount of future benefit that is more likely than not to be realized. |
Current accounting guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. We did not rely on any uncertain tax positions in recording our income tax-related amounts during the years ended December 2012, 2011 or 2011.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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