Cheniere Energy, Inc. Current report filing

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income tax benefit (provision) included in our reported net loss consisted of the following (in millions):

The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows:



	Year Ended December 31,
	2017		2016		2015
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
Non-controlling interest	2.9	%	(2.1	)%	(2.3	)%
State tax rate	(0.2	)%	1.8	%	1.9	%
U.S. tax reform rate change	71.4	%	—	%	—	%
Share-based compensation	(6.2	)%	—	%	—	%
Nondeductible interest expense	8.5	%	(6.6	)%	(2.6	)%
Other	(1.2	)%	(0.9	)%	(1.8	)%
Valuation allowance	(109.7	)%	(27.5	)%	(30.1	)%
Effective tax rate	0.5	%	(0.3	)%	0.1	%

Significant components of our deferred tax assets and liabilities at December 31, 2017 and 2016 are as follows (millions):



	December 31,
	2017			2016
Deferred tax assets
Net operating loss carryforwards and credits
Federal and foreign	$	960		$	1,060
State	188			183
Deferred gain	46			77
Share-based compensation expense	16			53
Derivative instruments	15			47
Long-term debt	16			18
Other	30			13
Less: valuation allowance	(806		)	(1,252		)
Total deferred tax assets	465			199

Deferred tax liabilities
Investment in limited partnership	(391		)	(76		)
Convertible debt	(65		)	(118		)
Property, plant and equipment	(6		)	(5		)
Total deferred tax liabilities	(462		)	(199		)

Net deferred tax assets	$	3		$	—

Changes in the balance of unrecognized tax benefits are as follows (in millions):



	Year Ended December 31,
	2017			2016
Balance at beginning of the year	$	103		$	104
Additions based on tax positions related to current year	—			—
Additions for tax positions of prior years	—			—
Reductions for tax positions of prior years	(1		)	(1		)
Settlements	—			—
U.S. tax reform rate change	(40		)	—
Balance at end of the year	$	62		$	103