Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The provision for (benefit from) income taxes consisted of the following (in thousands):



	Year Ended December 31,
	2018			2017			2016
Current tax provision (benefit):
U.S. federal	$	—		$	(1,495	)	$	—
State	912			172			352
Total current	$	912		$	(1,323	)	$	352

Deferred tax provision (benefit):
U.S. federal	$	6,197		$	(67,443	)	$	(21,287	)
State	(959		)	7,683			(3,669		)
Total deferred	$	5,238		$	(59,760	)	$	(24,956	)

Provision for (benefit from) income taxes	$	6,150		$	(61,083	)	$	(24,604	)

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles these effective tax rates to the U.S. statutory rate of 21%, the rate in effect during 2018, and 35%, the rate in effect during 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018				2017				2016
Income taxes at U.S. federal statutory rate	$	7,415			$	(14,917	)		$	(31,297	)
Net state income taxes	1,570				(4,693		)	⁽²⁾	416
Tax Cuts and Jobs Act	—				(53,442		)	⁽³⁾	—
Noncontrolling interest	(1,793		)		(1,091		)		3,204
Unrecognized tax benefits	(1,443		)	⁽¹⁾	9,566			⁽⁴⁾	(2,078		)
Valuation allowances and write off of tax attributes	(58		)		247				85
Indemnification revenue / expense	(44		)		692				3,006
Executive compensation limitation	977				2,433				856
Stock	(455		)		(858		)	⁽⁵⁾	—
Other	(19		)		980				1,204
Provision for (benefit from) income taxes	$	6,150			$	(61,083	)		$	(24,604	)

——————


⁽¹⁾	Reflects a decrease in our uncertain tax benefit, net of federal benefit, due to the settlement of tax audits and the expiration of a statute of limitations.


⁽²⁾	Includes a deferred state release, net of federal benefit, of $3.7 million due to the remeasurement of our uncertain tax benefits.


⁽³⁾	See “Tax Cuts and Jobs Act” above for further details.


⁽⁴⁾	Reflects an increase in our uncertain tax benefit, net of federal benefit, due to appellate court decisions in 2017 which required us to remeasure certain of our uncertain tax positions.


⁽⁵⁾	Reflects the impact of adopting ASU 2016-09.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred tax assets and deferred tax liabilities were as follows (in thousands):



	December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	82,259		$	53,950
Accrued liabilities	5,726			6,407
Other	9,407			5,181
	97,392			65,538
Valuation allowances	(45,439		)	(300		)
Total deferred tax assets	$	51,953		$	65,238

Deferred tax liabilities:
Property, plant and equipment	$	(10,763	)	$	(17,999	)
Basis difference in the Partnership	(35,604		)	(143,322		)
Other	(4,172		)	(1,860		)
Total deferred tax liabilities	(50,539		)	(163,181		)
Net deferred tax asset (liability) ⁽¹⁾	$	1,414		$	(97,943	)

——————


⁽¹⁾	The 2018 net deferred tax asset includes a $4.2 million deferred tax asset, which is reflected in other long-term assets in our consolidated balance sheets, and a $2.8 million deferred tax liability, which is reflected in deferred income taxes. The 2017 net deferred tax liability is presented as deferred income taxes in our consolidated balance sheets.

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits (including discontinued operations) is shown below (in thousands):



	Year Ended December 31,
	2018			2017			2016
Beginning balance	$	21,400		$	9,665		$	11,998
Additions based on tax positions related to current year	1,893			2,002			271
Additions based on tax positions related to prior years⁽¹⁾	450			9,887			862
Reductions based on settlement payments to (refunds from) government authorities	(3,461		)	(154		)	(3,466		)
Reductions based on tax positions related to prior years	(20		)	—			—
Reductions based on lapse of statute of limitations	(702		)	—			—
Ending balance	$	19,560		$	21,400		$	9,665

——————


⁽¹⁾	Appellate court decisions during the year ended December 31, 2017 required us to remeasure certain of our uncertain tax positions and increase our unrecognized tax benefit for these positions in 2017.