Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.10.0.1
Income Taxes
12 Months Ended
Dec. 31, 2018
Income Taxes  
Income Taxes

(4)  Income Taxes

For the years ended December 31, 2016,  2017, and 2018,  income tax expense consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

(in thousands)

   

2016

   

2017

   

2018

 

Current income tax expense

 

$

6,787

 

 

26,261

 

 

33,615

 

Deferred income tax benefit

 

 

(368)

 

 

 —

 

 

(1,304)

 

Total income tax expense

 

$

6,419

 

 

26,261

 

 

32,311

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

(in thousands)

  

2016

  

2017

  

2018

 

Federal income tax expense

 

$

5,646

 

 

10,005

 

 

20,773

 

State income tax expense, net of federal benefit

 

 

479

 

 

952

 

 

4,133

 

Non-deductible equity-based compensation

 

 

 —

 

 

13,296

 

 

8,087

 

Non-deductible IPO expenses

 

 

309

 

 

1,948

 

 

 1

 

Other

 

 

(15)

 

 

60

 

 

(683)

 

Provision for income taxes

 

$

6,419

 

 

26,261

 

 

32,311

 

 

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.