Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Income Tax Expense (Benefit) Table

The components of income tax expense (benefit) are as follows:



	Year Ended December 31,
thousands	2015		2014			2013
Current income tax expense (benefit)
Federal income tax expense (benefit)	$	32,422	$	(114	)	$	(62,149	)
State income tax expense (benefit)	1,764		493			169
Total current income tax expense (benefit)	34,186		379			(61,980		)
Deferred income tax expense (benefit)
Federal income tax expense (benefit)	10,251		35,361			66,390
State income tax expense (benefit)	1,095		3,321			(144		)
Total deferred income tax expense (benefit)	11,346		38,682			66,246
Total income tax expense (benefit)	$	45,532	$	39,061		$	4,266

Tax Rate Reconciliation Table

Total income taxes differed from the amounts computed by applying the statutory income tax rate to income (loss) before income taxes. The sources of these differences are as follows:



	Year Ended December 31,
thousands except percentages	2015			2014			2013
Income (loss) before income taxes	$	56,630		$	492,550		$	288,945
Statutory tax rate	—		%	—		%	—		%
Tax computed at statutory rate	$	—		$	—		$	—
Adjustments resulting from:
Federal taxes on income attributable to Anadarko’s investment in WES	42,823			35,716			4,776
State taxes on income attributable to Anadarko’s investment in WES (net of federal benefit)	298			864			849
Texas margin tax expense (benefit) ⁽¹⁾	2,411			2,481			(1,359		)
Income tax expense (benefit)	$	45,532		$	39,061		$	4,266
Effective tax rate	80		%	8		%	1		%


⁽¹⁾	Includes a reduction of $2.2 million in deferred state income taxes. Texas House Bill 32, signed into law in June 2015, reduced the Texas margin tax rates by 0.25%. The law became effective January 1, 2016. WGP is required to include the impact of the law change on its deferred state income taxes in the period enacted.

Income Tax Temporary Differences Table

The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows:



	December 31,
thousands	2015			2014
Depreciable property	$	(138,159	)	$	(168,998	)
Credit carryforwards	512			526
Other intangible assets	(2,070		)	(1,450		)
Other	13			7
Net long-term deferred income tax liabilities	$	(139,704	)	$	(169,915	)