Income Taxes

12 Months Ended

Dec. 31, 2019

7. INCOME TAXES

The Partnership is not a taxable entity for U.S. federal income tax purposes. Income attributable to the AMA assets prior to and including February 2019 was subject to federal and state income tax. Following the adoption of the U.S. Tax Cuts and Jobs Act signed into law on December 22, 2017, AMA recognized a one-time deferred tax benefit of $87.3 million due to the remeasurement of its U.S. deferred tax assets and liabilities based on the reduction of the corporate tax rate from 35% to 21%.

During 2018, the accounting for the income tax effects related to the adoption of the Tax Reform Legislation was completed before the end of the measurement period. No additional adjustments to the provisional amount recorded in 2017 were recognized. The federal tax benefit is included in the Deferred income taxes balance as presented on the consolidated balance sheets.

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



	Year Ended December 31,
thousands	2019		2018			2017
Current income tax expense (benefit)
Federal income tax expense (benefit)	$	5,550	$	(79,264	)	$	(9,207	)
State income tax expense (benefit)	313		(850		)	2,422
Total current income tax expense (benefit)	5,863		(80,114		)	(6,785		)
Deferred income tax expense (benefit)
Federal income tax expense (benefit)	2,782		133,044			(55,835		)
State income tax expense (benefit)	4,827		6,004			2,697
Total deferred income tax expense (benefit)	7,609		139,048			(53,138		)
Total income tax expense (benefit)	$	13,472	$	58,934		$	(59,923	)

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	2019			2018			2017
Income (loss) before income taxes	$	821,172		$	689,588		$	677,462
Statutory tax rate	—		%	—		%	—		%
Tax computed at statutory rate	$	—		$	—		$	—
Adjustments resulting from:
U.S. federal tax reform	—			—			(87,306		)
Federal taxes on pre-acquisition income attributable to assets acquired from Anadarko	8,332			54,243			22,353
State taxes on pre-acquisition income attributable to assets acquired from Anadarko (net of federal benefit)	—			1,745			164
Texas margin tax expense (benefit)	5,140			2,946			4,866
Income tax expense (benefit)	$	13,472		$	58,934		$	(59,923	)
Effective tax rate	2		%	9		%	(9		)%

7. INCOME TAXES (CONTINUED)

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



	December 31,
thousands	2019			2018
Depreciable property	$	(18,642	)	$	(280,377	)
Credit carryforwards	—			497
Other intangible assets	(678		)	(299		)
Other	421			162
Net long-term deferred income tax liabilities	$	(18,899	)	$	(280,017	)