Income Taxes

12 Months Ended

Dec. 31, 2023

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 2023, we paid federal and state income taxes on these operations.

Our income tax expense (benefit) is as follows:

	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	211	$	—	$	—
State	836		815		690
Total current income tax expense	$	1,047	$	815	$	690
Deferred:
Federal	$	248	$	1,814	$	1,097
State	(1,314)		540		(117)
Total deferred income tax expense (benefit)	$	(1,066)	$	2,354	$	980
Total income tax expense (benefit)	$	(19)	$	3,169	$	1,670

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,
	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	13,631	$	15,313
Right of use liabilities	36,148		—
Other	4,823		2,333
Total long-term deferred tax asset	54,602		17,646
Valuation allowances	(3,802)		(3,471)
Total deferred tax assets	$	50,800	$	14,175
Deferred tax liabilities:
Long-term:
Fixed assets	$	(2,408)	$	(1,730)
Intangible assets	(29,635)		(27,033)
Right of use assets	(36,150)		—
Other	(117)		(2,064)
Total long-term liability	(68,310)		(30,827)
Total deferred tax liabilities	$	(68,310)	$	(30,827)
Total net deferred tax liability	$	(17,510)	$	(16,652)

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,
	2023			2022			2021
Income (loss) from operations before income taxes	$	146,328		$	132,304		$	(136,362)
Partnership income (loss) not subject to federal income tax	(135,349)			(126,403)			140,092
Income subject to federal income taxes	$	10,979		$	5,901		$	3,730
Tax expense at federal statutory rate	$	2,306		$	1,239		$	783
State income taxes, net of federal tax	(467)			1,248			574
Return to provision, federal and state	(169)			44			(227)
Other	(2,077)			(18)			112
Valuation allowance	388			656			428
Income tax expense (benefit)	$	(19)		$	3,169		$	1,670
Effective tax rate on income (loss) from operations before income taxes	(0.01)		%	2.4		%	(1.2)		%

At December 31, 2023, 2022 and 2021, we had no uncertain tax positions.