Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of our income tax provision (benefit) are as follows (in millions):



	Year Ended December 31,
	2017			2016		2015
Current income tax provision	$	0.4		$	2.5	$	3.1
Deferred tax provision (benefit)	(197.2		)	2.1		22.6
Total income tax provision (benefit)	$	(196.8	)	$	4.6	$	25.7

Reconciliation of Total Income Tax Expense to Income before Income Taxes

The following schedule reconciles total income tax expense (benefit) and the amount calculated by applying the statutory U.S. federal tax rate to income before income taxes (in millions):



	Year Ended December 31,
	2017			2016			2015
Expected income tax provision (benefit) based on federal statutory rate of 35%	$	5.6		$	(159.4	)	$	(116.0	)
State income taxes, net of federal benefit	0.4			(11.4		)	(8.3		)
Statutory rate change (1)	(210.6		)	—			—
Income tax expense from partnership	0.9			1.2			(0.5		)
Unit-based compensation (2)	2.9			—			—
Non-deductible expense related to asset impairment	—			173.8			149.4
Other	4.0			0.4			1.1
Total income tax provision (benefit)	$	(196.8	)	$	4.6		$	25.7

(1)

On December 22, 2017, the Tax Cuts and Jobs Act was signed into legislation which resulted in a change in the federal statutory corporate rate from 35% to 21%, effective January 1, 2018. Accordingly, we have recorded a total tax benefit of $210.6 million due to a remeasurement of deferred tax liabilities. Of this amount, $185.7 million was related to ENLC’s standalone deferred tax liabilities, and $24.9 million was related to ENLK’s re-measurement of deferred tax liabilities of its wholly-owned corporate subsidiaries.


(2)	Related to tax deficiencies recorded upon the vesting of restricted incentive units, which were recognized in accordance with the adoption of ASU 2016-09. For additional information on ASU 2016-09, see “Note 2—Significant Accounting Policies.”

Schedule of Deferred Tax Assets and Liabilities

Our deferred income tax assets and liabilities as of December 31, 2017 and 2016 are as follows (in millions):



	December 31, 2017			December 31, 2016
Deferred income tax assets:
Federal net operating loss carryforward	$	54.5		$	59.5
State net operating loss carryforward	14.2			6.5
Asset retirement obligations and other	—			0.9
Total deferred tax assets	68.7			66.9
Deferred tax liabilities:
Property, equipment, and intangible assets (1)	(414.9		)	(609.5		)
Deferred tax liability, net	$	(346.2	)	$	(542.6	)


(1)	Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment.

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):



	Year Ended December 31,
	2017		2016			2015
Beginning Balance, January 1	$	—	$	1.5		$	2.0
Decrease due to prior year tax positions	—		(1.5		)	(0.5		)
Ending Balance, December 31	$	—	$	—		$	1.5