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Income Taxes (Notes) | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Prior to the Offering, the DKL Predecessor was a corporation included in its parent's consolidated tax return. As such, the DKL 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 Offering, the Partnership 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. The Partnership does not file a separate Texas income tax return. Our results of operations are included in Delek’s consolidated return. However, the provisions of ASC 740 have been followed as if we were a stand-alone entity. 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 states' enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Partnership had a tax benefit of $14.0 million for the year ended December 31, 2012. For the period subsequent to the Offering, the Partnership had total tax expense of $0.1 million in 2012. The majority of the change in deferred tax assets and liabilities relates to the DKL 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 in 2012. Significant components of our deferred tax assets and liabilities, reported separately in the accompanying combined financial statements, as of December 31, 2013 and 2012, are as follows (in thousands):
|  | December 31,
|  | 2013 |  | 2012
Current Deferred Taxes: |  |  |  |
Accrued reserves |  | $ | 6 |  |  | $ | 1 |
Tank and pipeline inspection liabilities |  | 8 |  |  | 2 |
Contingent liabilities |  | — |  |  | 11 |
Depreciation and amortization |  | (2 | ) |  | — |
Total current deferred tax assets |  | 12 |  |  | 14 |
Non-Current Deferred Taxes: |  |  |  |
Depreciation and amortization |  | (370 | ) |  | (36 | )
Asset retirement obligations |  | 4 |  |  | 1 |
Tank and pipeline inspection liabilities |  | 30 |  |  | 6 |
Contingent liabilities |  | 12 |  |  | 13 |
Other |  | — |  |  | (1 | )
Total non-current deferred tax liabilities |  | (324 | ) |  | (17 | )
Total net deferred tax liabilities |  | $ | (312 | ) |  | $ | (3 | )
The total current deferred tax assets and liabilities, respectively, excluding the valuation allowance, were nominal as of December 31, 2013 and December 31, 2012. The total non-current deferred tax assets and liabilities, respectively, excluding the valuation allowance, were nominal and $0.4 million as of December 31, 2013 and nominal as of December 31, 2012. 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,
|  | 2013 |  | 2012 |  | 2011
Provision for federal income taxes at statutory rate |  | $ | — |  |  | $ | 4,047 |  |  | $ | 6,304 |
State income taxes, net of federal tax provision |  | 794 |  |  | (58 | ) |  | 255 |
Valuation allowance |  | — |  |  | 193 |  |  | (1,145 | )
Permanent differences |  | — |  |  | 300 |  |  | 15 |
Conversion to partnership |  | — |  |  | (18,534 | ) |  | — |
Other items |  | (37 | ) |  | 28 |  |  | (66 | )
Income tax (benefit) expense |  | $ | 757 |  |  | $ | (14,024 | ) |  | $ | 5,363 |
Income tax expense (benefit) is as follows (in thousands):
|  | Year Ended December 31,
|  | 2013 |  | 2012 |  | 2011
Current |  | $ | 448 |  |  | $ | 4,738 |  |  | $ | 9,691 |
Deferred |  | 309 |  |  | (18,762 | ) |  | (4,328 | )
|  | $ | 757 |  |  | $ | (14,024 | ) |  | $ | 5,363 |
Deferred income tax expense above is reflective of the changes in deferred tax assets and liabilities during the current period. Delek US files a consolidated Texas income tax return and current income tax payments for DKL are paid by Delek US. Therefore, any current income tax payable is included in accounts receivable/payable from related parties. As of December 31, 2013 and 2012, income taxes payable of $0.4 million and a nominal amount, respectively, were included in accounts receivable/payable from related parties in the accompanying consolidated balance sheets. Taxes that are determined on a combined basis apply the “benefits for loss” allocation method; thus, tax attributes are realized when used in the combined tax return to the extent that they have been subject to a valuation allowance. 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, 2013, 2012 or 2011 and there were no interest or penalties recognized related to uncertain tax positions for the years ended December 31, 2013, 2012 or 2011. 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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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 6: 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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