|12 Months Ended|
Dec. 31, 2018
(4) Income Taxes
For the years ended December 31, 2016, 2017, and 2018, income tax expense consisted of the following:
Income tax expense differs from the amount that would be computed by applying the U.S. statutory federal income tax rate of 35% to income` for the years ended December 31, 2016 and 2017, and 21% for the year ended December 31, 2018, as a result of the following:
Deferred income taxes reflect the impact of temporary differences between assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. As of December 31, 2018, AMGP had a deferred tax asset of $1.3 million related to transaction costs incurred for the Simplification Agreement.
In assessing the realizability of deferred tax assets, management considers whether some portion or all of the deferred tax assets will be realized based on a more-likely-than-not standard of judgment. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the AMGP’s temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon the projections of future taxable income over the periods in which the deferred tax assets are deductible, management believes that the Partnership will realize the benefits of these deductible differences and thus has not recorded a valuation allowance.
The tax years 2015 through 2018 remain open to examination by the U.S. Internal Revenue Service. The Company and its subsidiaries file tax returns with various state taxing authorities; these returns remain open to examination for tax years 2014 through 2018.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef