Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income Tax Expense (Benefit) Table

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



	Year Ended December 31,
thousands	2016		2015		2014
Current income tax expense (benefit)
Federal income tax expense (benefit)	$	4,477	$	32,422	$	(114	)
State income tax expense (benefit)	1,340		1,764		493
Total current income tax expense (benefit)	5,817		34,186		379
Deferred income tax expense (benefit)
Federal income tax expense (benefit)	1,622		10,251		35,361
State income tax expense (benefit)	933		1,095		3,321
Total deferred income tax expense (benefit)	2,555		11,346		38,682
Total income tax expense (benefit)	$	8,372	$	45,532	$	39,061

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	2016			2015			2014
Income (loss) before income taxes	$	605,352		$	56,630		$	492,550
Statutory tax rate	—		%	—		%	—		%
Tax computed at statutory rate	$	—		$	—		$	—
Adjustments resulting from:
Federal taxes on income attributable to Anadarko’s investment in WES	6,162			42,823			35,716
State taxes on income attributable to Anadarko’s investment in WES (net of federal benefit)	117			298			864
Texas margin tax expense (benefit) ⁽¹⁾	2,093			2,411			2,481
Income tax expense (benefit)	$	8,372		$	45,532		$	39,061
Effective tax rate	1		%	80		%	8		%


⁽¹⁾	Includes a reduction of $2.2 million in deferred state income taxes for the year ended December 31, 2015. 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	2016			2015
Depreciable property	$	(4,976	)	$	(138,159	)
Credit carryforwards	498			512
Other intangible assets	(1,928		)	(2,070		)
Other	4			13
Net long-term deferred income tax liabilities	$	(6,402	)	$	(139,704	)