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INCOME TAXES (Notes) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The following table sets forth our provision for income taxes from continuing operations and excludes discontinued operations for the periods indicated:
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
|  | (Thousands of dollars)
Current income tax provision |  |  |  |  |  |
Federal |  | $ | 260 |  |  | $ | 295 |  |  | $ | 6,086 |
State |  | 1,633 |  |  | 1,670 |  |  | 2,449 |
Total current income taxes |  | 1,893 |  |  | 1,965 |  |  | 8,535 |
Deferred income tax provision |  |  |  |  |  |  |  |
Federal |  | 319,551 |  |  | 376,728 |  |  | 193,974 |
State |  | 41,459 |  |  | 68,589 |  |  | 9,897 |
Total deferred income taxes |  | 361,010 |  |  | 445,317 |  |  | 203,871 |
Total provision for income taxes |  | $ | 362,903 |  |  | $ | 447,282 |  |  | $ | 212,406 |
The following table is a reconciliation of our income tax provision from continuing operations and excludes discontinued operations for the periods indicated:
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
|  | (Thousands of dollars)
Income before income taxes |  | $ | 1,517,935 |  |  | $ | 1,040,801 |  |  | $ | 957,956 |
Less: Net income attributable to noncontrolling interests |  | 3,329 |  |  | 205,678 |  |  | 391,460 |
Net income attributable to ONEOK before income taxes |  | 1,514,606 |  |  | 835,123 |  |  | 566,496 |
Federal statutory income tax rate |  | 21.0 | % |  | 35.0 | % |  | 35.0 | %
Provision for federal income taxes |  | 318,067 |  |  | 292,293 |  |  | 198,274 |
State income taxes, net of federal benefit |  | 38,668 |  |  | 16,197 |  |  | 12,303 |
Deferred tax rate change, inclusive of valuation allowance |  | 5,552 |  |  | 141,283 |  |  | 43 |
Other, net |  | 616 |  |  | (2,491 | ) |  | 1,786 |
Income tax provision |  | $ | 362,903 |  |  | $ | 447,282 |  |  | $ | 212,406 |
The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated:
|  | December 31, 2018 |  | December 31, 2017
Deferred tax assets |  | (Thousands of dollars)
Employee benefits and other accrued liabilities |  | $ | 91,587 |  |  | $ | 85,355 |
Federal net operating loss |  | 420,318 |  |  | 159,162 |
State net operating loss and benefits |  | 108,004 |  |  | 73,277 |
Derivative instruments |  | 22,108 |  |  | 30,060 |
Other |  | 13,378 |  |  | 13,546 |
Total deferred tax assets |  | 655,395 |  |  | 361,400 |
Valuation allowance for state net operating loss and tax credits |  |  |  |
Carryforward expected to expire prior to utilization |  | (73,820 | ) |  | (66,632 | )
Net deferred tax assets |  | 581,575 |  |  | 294,768 |
Deferred tax liabilities |  |  |  |
Excess of tax over book depreciation |  | 73,113 |  |  | 64,508 |
Investment in partnerships (a) |  | 728,193 |  |  | 77,035 |
Regulatory assets |  | — |  |  | 15 |
Total deferred tax liabilities |  | 801,306 |  |  | 141,558 |
Net deferred tax assets (liabilities) |  | $ | (219,731 | ) |  | $ | 153,210 |
(a) Due primarily to excess of tax over book depreciation. In December 2017, the Tax Cuts and Jobs Act was signed into law. The Tax Cuts and Jobs Act made extensive changes to the U.S. tax laws and included provisions that, beginning in 2018, reduced the U.S. corporate tax rate to 21 percent from 35 percent, increased expensing for capital investment, limited the interest deduction, and limited the use of net operating losses to offset future taxable income. We revalued our deferred tax assets and liabilities as required at enactment. At that time, our net deferred tax assets represented expected corporate tax benefits in the future. The reduction in the federal corporate tax rate reduced these benefits, which resulted in a one-time noncash charge to net income through income tax expense of $141.3 million, inclusive of the valuation allowance described below, recorded in the fourth quarter 2017. Tax benefits related to certain state net operating loss, tax credit carryforwards and charitable contribution carryforwards will begin expiring in 2020. Due to the Tax Cuts and Jobs Act and the impact of increased expensing for capital investment, we believe that it is more likely than not that the tax benefits of certain carryforwards will not be utilized prior to their expirations; therefore, we recorded a valuation allowance of $5.6 million and $54.1 million related to these tax benefits in 2018 and 2017, respectively. As a result of adopting ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” in first quarter 2017, we recorded an adjustment increasing beginning retained earnings and deferred tax assets of $73.4 million to recognize the cumulative tax benefits included in net operating loss carryforwards on the tax return but not reflected in deferred tax assets as of December 31, 2016. Beginning in January 2017, all share-based payment tax effects have been recorded in earnings.

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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 Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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