Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign

Components of income before income taxes and non-controlling interest on our Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions): 
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
U.S.
 
$
289

 
$
997

 
$
30

International
 
426

 
230

 
536

Total income before income taxes and non-controlling interest
 
$
715

 
$
1,227

 
$
566


Schedule of Components of Income Tax Expense (Benefit)
Income tax provision (benefit) included in our reported net income consisted of the following (in millions): 
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
 
Federal
 
$
—

 
$
—

 
$
—

State
 
—

 
2

 
—

Foreign
 
4

 
30

 
6

Total current
 
4

 
32

 
6

 
 
 
 
 
 
 
Deferred:
 
 
 
 
 
 
Federal
 
(475
)
 
—

 
—

State
 
(46
)
 
—

 
—

Foreign
 
—

 
(5
)
 
(3
)
Total deferred
 
(521
)
 
(5
)
 
(3
)
Total income tax provision (benefit)
 
$
(517
)
 
$
27

 
$
3


Schedule of Effective Income Tax Rate Reconciliation
The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows: 
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
U.S. federal statutory tax rate
 
21.0
 %
 
21.0
 %
 
35.0
 %
Non-controlling interest
 
(17.2
)%
 
(11.4
)%
 
2.9
 %
State tax rate
 
(5.4
)%
 
(0.4
)%
 
(0.2
)%
U.S. tax reform rate change
 
—
 %
 
—
 %
 
71.4
 %
Executive compensation
 
1.3
 %
 
0.5
 %
 
0.9
 %
Share-based compensation
 
(0.3
)%
 
(0.5
)%
 
(6.2
)%
Nondeductible interest expense
 
5.0
 %
 
2.6
 %
 
8.5
 %
Foreign earnings taxed in the U.S.
 
6.7
 %
 
1.4
 %
 
—
 %
Foreign rate differential
 
(11.4
)%
 
(1.1
)%
 
(0.7
)%
Tax credits
 
(5.2
)%
 
(0.6
)%
 
(1.0
)%
Other
 
1.7
 %
 
0.5
 %
 
(0.4
)%
Valuation allowance
 
(68.5
)%
 
(9.8
)%
 
(109.7
)%
Effective tax rate
 
(72.3
)%
 
2.2
 %
 
0.5
 %

Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows (millions): 
 
 
December 31,
 
 
2019
 
2018
Deferred tax assets
 
 
 
 
Net operating loss carryforwards and credits
 
 
 
 
Federal
 
$
2,860

 
$
848

Foreign
 
5

 
7

State
 
249

 
189

Federal and state tax credits
 
64

 
28

Disallowed business interest expense carryforward
 
154

 
19

Deferred gain
 
46

 
46

Other
 
97

 
50

Less: valuation allowance
 
(196
)
 
(686
)
Total deferred tax assets
 
3,279

 
501

 
 
 
 
 
Deferred tax liabilities
 
 

 
 

Investment in limited partnership
 
(554
)
 
(375
)
Convertible debt
 
(51
)
 
(59
)
Property, plant and equipment
 
(2,110
)
 
(48
)
Other
 
(35
)
 
(11
)
Total deferred tax liabilities
 
(2,750
)
 
(493
)
 
 
 
 
 
Net deferred tax assets
 
$
529

 
$
8


Summary of Unrecognized Tax Benefits
Changes in the balance of unrecognized tax benefits are as follows (in millions): 
 
Year Ended December 31,
 
2019
 
2018
Balance at beginning of the year
$
61

 
$
62

Additions based on tax positions related to current year
—

 
—

Additions for tax positions of prior years
—

 
—

Reductions for tax positions of prior years
—

 
(1
)
Settlements
—

 
—

U.S. tax reform rate change
—

 
—

Balance at end of the year
$
61

 
$
61