Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We are not a taxable entity for federal income tax purposes. As such, we do not directly pay federal income taxes. Other than with respect to our corporate subsidiaries and the Texas Margin Tax, our taxable income or loss is includible in the federal income tax returns of each of our partners.

A few of our operations are owned by wholly-owned corporate subsidiaries that are taxable as corporations. We pay federal and state income taxes on these operations.

Our income tax (benefit) expense is as follows:

	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	—	$	—	$	—
State	690		650		591
Total current income tax expense	$	690	$	650	$	591
Deferred:
Federal	$	1,097	$	78	$	930
State	(117)		599		(866)
Total deferred income tax expense	$	980	$	677	$	64
Total income tax expense	$	1,670	$	1,327	$	655

Deferred income taxes relate to temporary differences based on tax laws and statutory rates that were enacted at the balance sheet date. Deferred tax assets and liabilities consist of the following:

	December 31,
	2021		2020
Deferred tax assets:
Net operating loss carryforwards	$	16,174	$	14,918
Other	1,277		985
Total long-term deferred tax asset	17,451		15,903
Valuation allowances	(2,760)		(2,366)
Total deferred tax assets	$	14,691	$	13,537
Deferred tax liabilities:
Long-term:
Fixed assets	$	(1,803)	$	(1,882)
Intangible assets	(25,772)		(23,251)
Other	(1,413)		(1,721)
Total long-term liability	(28,988)		(26,854)
Total deferred tax liabilities	$	(28,988)	$	(26,854)
Total net deferred tax liability	$	(14,297)	$	(13,317)

We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions.

The reconciliation between the Partnership's effective tax rate on income (loss) from operations and the statutory tax rate is as follows:

	Year Ended December 31,
	2021			2020			2019
Income (loss) from operations before income taxes	$	(136,362)		$	(398,987)		$	100,721
Partnership income not subject to federal income tax	140,092			398,729			(99,832)
Income (loss) subject to federal income taxes	$	3,730		$	(258)		$	889
Tax expense (benefit) at federal statutory rate	$	783		$	(54)		$	187
State income taxes, net of federal tax	574			1,213			729
Return to provision, federal and state	(227)			(383)			(219)
Other	112			117			(42)
Valuation allowance	428			434			—
Income tax expense	$	1,670		$	1,327		$	655
Effective tax rate on income (loss) from operations before income taxes	(1.2)		%	(0.3)		%	0.7		%

At December 31, 2021, 2020 and 2019, we had no uncertain tax positions.