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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Tax Expense (Benefit) [Abstract] |
Income Taxes | Income Taxes Prior to the initial public offering, the Predecessor was a corporation included in its parent's consolidated tax return. As such, the Predecessor was subject to both federal and state income taxes and recorded deferred income taxes for the differences between the book and tax bases of its assets and liabilities, which are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. Effective with the closing of the Partnership's initial public offering, it is no longer a taxable entity for federal income tax purposes. While most states do not impose an entity level tax on partnership income, the Partnership is subject to entity level tax in both Tennessee and Texas. As a result, the Partnership must record deferred income taxes for the differences between book and tax bases of its assets and liabilities based on those current states enacted tax rates and laws that will be in effect when the differences are expected to reverse. Subsequent to the initial public offering, the Partnership had total tax expense of $0.1 million. The majority of the change in deferred tax assets and liabilities relates to the Predecessor's conversion from a corporation to a partnership and no longer being subject to federal income tax. The conversion from a taxable corporation to a passthrough resulted in a one-time tax benefit of $18.5 million. Significant components of our deferred tax assets and liabilities, reported separately in the accompanying combined financial statements, as of December 31, 2012 and 2011, are as follows (in thousands):
|  | December 31,
|  | 2012 |  | 2011
Current Deferred Taxes: |  |  |  |
Accrued reserves |  | $ | 1 |  |  | $ | 60 |
Tank and pipeline inspection liabilities |  | 2 |  |  | 113 |
Contingent liabilities |  | 11 |  |  | 632 |
Valuation allowance |  | — |  |  | (72 | )
Total current deferred tax assets |  | 14 |  |  | 733 |
Non-Current Deferred Taxes: |  |  |  |
Depreciation and amortization |  | (36 | ) |  | (17,011 | )
Net operating loss carryforwards |  | — |  |  | 626 |
Stock-based compensation |  | — |  |  | 237 |
Asset retirement obligations |  | 1 |  |  | 280 |
ASC 815 derivatives |  | — |  |  | (6 | )
Deferred revenue |  | — |  |  | 343 |
Tank and pipeline inspection liabilities |  | 6 |  |  | 1,145 |
Contingent liabilities |  | 13 |  |  | 1,684 |
State bonus depreciation |  | — |  |  | 129 |
Other |  | (1 | ) |  | (11 | )
Valuation allowance |  | — |  |  | (6,914 | )
Total non-current deferred tax liabilities |  | (17 | ) |  | (19,498 | )
Total net deferred tax liabilities |  | $ | (3 | ) |  | $ | (18,765 | )
The difference between the actual income tax expense and the tax expense computed by applying the statutory federal income tax rate to income before income taxes is attributable to the following (in thousands):
|  | Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
Provision for federal income taxes at statutory rate |  | $ | 4,047 |  |  | $ | 6,304 |  |  | $ | 5,316 |
State income taxes, net of federal tax provision |  | (58 | ) |  | 255 |  |  | 32 |
Valuation allowance |  | 193 |  |  | (1,145 | ) |  | — |
Permanent differences |  | 300 |  |  | 15 |  |  | (218 | )
Conversion to partnership |  | (18,534 | ) |  | — |  |  | — |
Other items |  | 28 |  |  | (66 | ) |  | (28 | )
Income tax (benefit) expense |  | $ | (14,024 | ) |  | $ | 5,363 |  |  | $ | 5,102 |
Income tax expense is as follows (in thousands):
|  | Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
Current |  | $ | 4,738 |  |  | $ | 9,691 |  |  | $ | 4,844 |
Deferred |  | (18,762 | ) |  | (4,328 | ) |  | 258 |
|  | $ | (14,024 | ) |  | $ | 5,363 |  |  | $ | 5,102 |
Deferred income tax expense above is reflective of the changes in deferred tax assets and liabilities during the current period. We recognize accrued interest and penalties related to unrecognized tax benefits as an adjustment to the current provision for income taxes. There are no uncertain tax positions recorded as of December 31, 2012 or 2011 and there were no interest or penalties recognized related to uncertain tax positions for the years ended December 31, 2012, 2011 or 2010. We have examined uncertain tax positions for any material changes in the next 12 months and none are expected.

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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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