Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The jurisdictional components of income before income taxes and non-controlling interest on our Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 are as follows (in millions): 
  Year Ended December 31,
  2020 2019 2018
U.S. $ 720  $ 289  $ 997 
International (176) 426  230 
Total income before income taxes and non-controlling interest $ 544  $ 715  $ 1,227 
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,
2020 2019 2018
Current:
Federal $ —  $ —  $ — 
State —  —  2 
Foreign —  4  30 
Total current —  4  32 
Deferred:
Federal 41  (475) — 
State 2  (46) — 
Foreign —  —  (5)
Total deferred 43  (521) (5)
Total income tax provision (benefit) $ 43  $ (517) $ 27 
Schedule of Effective Income Tax Rate Reconciliation
Our income tax rates do not bear a customary relationship to statutory income tax rates. A reconciliation of the federal statutory income tax rate of 21% to our effective income tax rate is as follows: 
Year Ended December 31,
2020 2019 2018
U.S. federal statutory tax rate 21.0  % 21.0  % 21.0  %
Non-controlling interest (22.6) % (17.2) % (11.4) %
State tax rate —  % (5.4) % (0.4) %
Executive compensation 1.4  % 1.3  % 0.5  %
Nondeductible interest expense 8.0  % 5.0  % 2.6  %
Foreign earnings taxed in the U.S. 1.2  % 6.7  % 1.4  %
Foreign rate differential (3.7) % (11.4) % (1.1) %
Tax credits (4.5) % (5.2) % (0.6) %
Internal restructuring 7.0  % —  % —  %
Other 1.0  % 1.4  % —  %
Valuation allowance (0.9) % (68.5) % (9.8) %
Effective tax rate 7.9  % (72.3) % 2.2  %
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities at December 31, 2020 and 2019 are as follows (in millions): 
December 31,
2020 2019
Deferred tax assets    
Net operating loss carryforwards and credits
Federal $ 3,084  $ 2,860 
Foreign 3  5 
State 257  249 
Federal and state tax credits 95  64 
Disallowed business interest expense carryforward —  154 
Other 290  143 
Less: valuation allowance (190) (196)
Total deferred tax assets 3,539  3,279 
Deferred tax liabilities  
Investment in partnerships (765) (554)
Property, plant and equipment (2,089) (2,110)
Other (196) (86)
Total deferred tax liabilities (3,050) (2,750)
Net deferred tax assets $ 489  $ 529 
Summary of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of our unrecognized tax benefits for the years ended December 31, 2020 and 2019, is as follows (in millions): 
Year Ended December 31,
2020 2019
Balance at beginning of the year $ 61  $ 61 
Additions based on tax positions related to current year 1  — 
Additions for tax positions of prior years —  — 
Reductions for tax positions of prior years —  — 
Settlements —  — 
U.S. tax reform rate change —  — 
Balance at end of the year $ 62  $ 61