v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
(7) Income Taxes

The components of our income tax expense are as follows (in millions):
Three Months Ended
March 31,
20232022
Current income tax expense$(0.1)$(0.2)
Deferred income tax expense(10.8)(3.0)
Income tax expense$(10.9)$(3.2)

The following schedule reconciles income tax expense and the amount calculated by applying the statutory U.S. federal tax rate to income before non-controlling interest and income taxes (in millions):
Three Months Ended
March 31,
20232022
Expected income tax expense based on federal statutory rate$(14.5)$(8.1)
State income tax expense, net of federal benefit(1.8)(1.1)
Unit-based compensation (1)6.5 (2.0)
Change in valuation allowance— 7.1 
Other(1.1)0.9 
Income tax expense$(10.9)$(3.2)
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(1)Related to book-to-tax differences recorded upon the vesting of unit-based awards.

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. As of March 31, 2023, we had $53.2 million of deferred tax liabilities, net of $731.9 million of deferred tax assets. As of December 31, 2022, we had $42.7 million of deferred tax liabilities, net of $714.1 million of deferred tax assets.

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 previously established a valuation allowance, 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. As of March 31, 2023, we did not record a valuation allowance and management believes it is more likely than not that the Company will realize the benefits of the deferred tax assets.