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Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The provision for (benefit from) income taxes consisted of the following (in thousands):



	Year Ended December 31,
	2019			2018			2017
Current tax provision (benefit):
U.S. federal	$	75		$	—		$	(1,495	)
State	377			912			172
Total current	$	452		$	912		$	(1,323	)

Deferred tax provision (benefit):
U.S. federal	$	(35,597	)	$	6,197		$	(67,443	)
State	(4,000		)	(959		)	7,683
Total deferred	$	(39,597	)	$	5,238		$	(59,760	)

Provision for (benefit from) income taxes	$	(39,145	)	$	6,150		$	(61,083	)

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles these effective tax rates to the U.S. statutory rate of 21%, the rate in effect during 2019 and 2018, and 35%, the rate in effect during 2017 (in thousands):



	Year Ended December 31,
	2019			2018			2017
Income taxes at U.S. federal statutory rate	$	12,276		$	7,415		$	(14,917	)
Net state income taxes ⁽¹⁾	1,172			1,570			(4,693		)
Tax credits	(1,295		)	(244		)	—
Tax Cuts and Jobs Act ⁽²⁾	—			—			(53,442		)
Noncontrolling interest	—			(1,793		)	(1,091		)
Unrecognized tax benefits ⁽³⁾⁽⁴⁾	(1,958		)	(1,443		)	9,566
Valuation allowances and write off of tax attributes ⁽⁵⁾	(50,219		)	(58		)	247
Indemnification revenue / expense	42			(44		)	692
Executive compensation limitation	1,102			977			2,433
Stock	66			(455		)	(858		)
Other	(331		)	225			980
Provision for (benefit from) income taxes	$	(39,145	)	$	6,150		$	(61,083	)

——————


⁽¹⁾	Includes a deferred state release, net of federal benefit, of $3.7 million due to the remeasurement of our uncertain tax benefits in 2017.


⁽²⁾	See “Tax Cuts and Jobs Act” below for further details.


⁽³⁾	Reflects a decrease in our uncertain tax benefit, net of federal benefit, due to settlements of tax audits and expiration of statute of limitations in 2019 and 2018.


⁽⁴⁾	Reflects an increase in our uncertain tax benefit, net of federal benefit, due to appellate court decisions in 2017 which required us to remeasure certain of our uncertain tax positions.


⁽⁵⁾	See “Tax Attributes and Valuation Allowances” below for further details.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred tax assets and deferred tax liabilities were as follows (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	116,378		$	82,259
Accrued liabilities	3,486			5,726
Other	12,479			9,407
	132,343			97,392
Valuation allowances⁽¹⁾	(822		)	(45,439		)
Total deferred tax assets	$	131,521		$	51,953

Deferred tax liabilities:
Property, plant and equipment	$	(6,440	)	$	(10,763	)
Basis difference in the Partnership	(81,645		)	(35,604		)
Other	(8,083		)	(4,172		)
Total deferred tax liabilities	(96,168		)	(50,539		)
Net deferred tax asset ⁽²⁾	$	35,353		$	1,414

——————


⁽¹⁾	See “Tax Attributes and Valuation Allowances” below for further details.

⁽²⁾

The 2019 and 2018 net deferred tax asset are reflected in our consolidated balance sheets as deferred tax assets of $36.6 million and $4.3 million, respectively, and deferred tax liabilities of $1.3 million and $2.8 million, respectively

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the unrecognized tax benefit (including discontinued operations) activity is shown below (in thousands):



	Year Ended December 31,
	2019			2018			2017
Beginning balance	$	19,560		$	21,400		$	9,665
Additions based on tax positions related to current year	2,227			1,893			2,002
Additions based on tax positions related to prior years⁽¹⁾	2,047			450			9,887
Reductions based on settlement refunds from government authorities	(4,414		)	(3,461		)	(154		)
Reductions based on tax positions related to prior years	(51		)	(20		)	—
Reductions based on lapse of statute of limitations	(916		)	(702		)	—
Ending balance	$	18,453		$	19,560		$	21,400

——————

⁽¹⁾

Appellate court decisions during the year ended December 31, 2017 required us to remeasure certain of our uncertain tax positions and increase our unrecognized tax benefit for these positions in 2017.