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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
(8) Income Taxes

The components of our income tax benefit (expense) are as follows (in millions):
Year Ended December 31,
202220212020
Current income tax expense$(0.4)$(0.8)$(1.1)
Deferred tax benefit (expense)95.3 (24.6)(142.1)
Total income tax benefit (expense)$94.9 $(25.4)$(143.2)
The following schedule reconciles income tax benefit (expense) and the amount calculated by applying the statutory U.S. federal tax rate to income (loss) before non-controlling interest and income taxes (in millions):
Year Ended December 31,
202220212020
Expected income tax benefit (expense) based on federal statutory tax rate$(55.9)$(10.0)$58.5 
State income tax benefit (expense), net of federal benefit(7.0)(1.4)6.5 
Unit-based compensation (1)0.7 (3.1)(6.0)
Non-deductible expense related to impairments— — (43.4)
Statutory rate changes (2)— (10.2)— 
Change in valuation allowance151.6 1.7 (153.3)
Other5.5 (2.4)(5.5)
Total income tax benefit (expense)$94.9 $(25.4)$(143.2)
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(1)Related to book-to-tax differences recorded upon the vesting of unit-based awards.
(2)Effective January 1, 2022, Oklahoma House Bill 2960 resulted in a change in the corporate income tax rate from 6% to 4% and Louisiana Senate Bill No. 159 resulted in a change in the corporate income tax rate from 8% to 7.5%. Accordingly, we recorded deferred tax expense related to our Oklahoma and Louisiana operations in the amount of $7.6 million and $2.6 million, respectively, for the year ended December 31, 2021 due to a remeasurement of deferred tax assets.

Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax liabilities, net of deferred tax assets, are included in “Deferred tax liability, net” in the consolidated balance sheets. Our deferred income tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in millions):
December 31, 2022December 31, 2021
Deferred income tax assets:
Federal net operating loss carryforward$636.5 $573.6 
State net operating loss carryforward77.6 59.6 
Total deferred tax assets, gross714.1 633.2 
Valuation allowance— (151.6)
Total deferred tax assets, net of valuation allowance714.1 481.6 
Deferred tax liabilities:
Property, plant, equipment, and intangible assets (1)(816.8)(619.1)
Interest deduction limitation (2)57.6 — 
Other2.4 — 
Total deferred tax liabilities(756.8)(619.1)
Deferred tax liability, net$(42.7)$(137.5)
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(1)Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment.
(2)Related to book-to-tax differences between the allowable interest deduction amount under Section 163j of the Internal Revenue Code of 1986, as amended.

As of December 31, 2022, we had federal net operating loss (“NOL”) carryforwards of $3.0 billion that represent a net deferred tax asset of $636.5 million. As of December 31, 2022, we had state NOL carryforwards of $1.6 billion that represent a net deferred tax asset of $77.6 million. A portion of these carryforwards will begin expiring in 2028 through 2040. Federal NOLs incurred in 2018 and in future years (approximately $2.8 billion of our federal NOL carryforwards) may be carried forward indefinitely, but the deductibility of such federal NOLs is limited, while federal NOLs incurred prior to 2018 (approximately $0.2 billion of our NOL carryforwards) may be carried forward for only twenty years, but the deductibility of such NOL carryforwards generally is not limited unless we were to undergo a Section 382 “ownership change.”
We provide a valuation allowance, if necessary, to reduce deferred tax assets, if all, or some portion, of such assets will more than likely not be realized. We continually review the realizability of our deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. We assessed whether a valuation allowance should be recorded against our deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for a valuation allowance, we considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on our review of this evidence, we established a valuation allowance of $153.3 million as of December 31, 2020, primarily related to federal and state tax operating loss carryforwards for which we did not believe a tax benefit was more likely than not to be realized.

For the year ended December 31, 2021, we recorded a $1.7 million net reduction in the valuation allowance as a result of the remeasurement of the state deferred tax assets and liabilities from the statutory rate changes. For the year ended December 31, 2022, we further reduced the valuation allowance by $151.6 million as a result of improved current and expected future operating income. As of December 31, 2022, management believes it is more likely than not that the Company will realize the benefits of the deferred tax assets.
For the years ended December 31, 2022 and 2021, there was no recorded unrecognized tax benefit. Per our accounting policy election, penalties and interest related to unrecognized tax benefits are recorded to income tax expense. As of December 31, 2022, tax years 2018 through 2022 remain subject to examination by various taxing authorities.