Income Taxes

12 Months Ended

Dec. 31, 2022

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. During 2022, we paid federal and state income taxes on these operations.

Our income tax (benefit) expense is as follows:

	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	—	$	—	$	—
State	815		690		650
Total current income tax expense	$	815	$	690	$	650
Deferred:
Federal	$	1,814	$	1,097	$	78
State	540		(117)		599
Total deferred income tax expense	$	2,354	$	980	$	677
Total income tax expense	$	3,169	$	1,670	$	1,327

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,
	2022		2021
Deferred tax assets:
Net operating loss carryforwards	$	15,313	$	16,174
Other	2,333		1,277
Total long-term deferred tax asset	17,646		17,451
Valuation allowances	(3,471)		(2,760)
Total deferred tax assets	$	14,175	$	14,691
Deferred tax liabilities:
Long-term:
Fixed assets	$	(1,730)	$	(1,803)
Intangible assets	(27,033)		(25,772)
Other	(2,064)		(1,413)
Total long-term liability	(30,827)		(28,988)
Total deferred tax liabilities	$	(30,827)	$	(28,988)
Total net deferred tax liability	$	(16,652)	$	(14,297)

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,
	2022			2021			2020
Income (loss) from operations before income taxes	$	132,304		$	(136,362)		$	(398,987)
Partnership income not subject to federal income tax	(126,403)			140,092			398,729
Income (loss) subject to federal income taxes	$	5,901		$	3,730		$	(258)
Tax expense (benefit) at federal statutory rate	$	1,239		$	783		$	(54)
State income taxes, net of federal tax	1,248			574			1,213
Return to provision, federal and state	44			(227)			(383)
Other	(18)			112			117
Valuation allowance	656			428			434
Income tax expense	$	3,169		$	1,670		$	1,327
Effective tax rate on income (loss) from operations before income taxes	2.4		%	(1.2)		%	(0.3)		%

At December 31, 2022, 2021 and 2020, we had no uncertain tax positions.