Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The jurisdictional components of book income (loss) before income taxes and non-controlling interest on our Consolidated Statements of Operations are as follows (in millions):

  Year Ended December 31,
  2022 2021 2020
U.S. $ (1,575) $ (2,317) $ 720 
International 4,669  39  (176)
Total income (loss) before income taxes and non-controlling interest $ 3,094  $ (2,278) $ 544 
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,
2022 2021 2020
Current:
Federal $ 6  $ —  $ — 
State 2  3  — 
Foreign 11  5  — 
Total current 19  8  — 
Deferred:
Federal 320  (633) 41 
State 118  (89) 2 
Foreign 2  1  — 
Total deferred 440  (721) 43 
Total income tax provision (benefit) $ 459  $ (713) $ 43 
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,
2022 2021 2020
U.S. federal statutory tax rate 21.0  % 21.0  % 21.0  %
Non-controlling interest (8.2) 7.2  (22.6)
State tax, net of federal benefit 0.5  (2.5) — 
Foreign-derived intangible income deduction (1.2) —  — 
Executive compensation 0.8  (0.5) 1.4 
Nondeductible interest expense —  —  8.0 
Foreign earnings taxed in the U.S. —  —  1.2 
Foreign rate differential 0.2  (0.1) (3.7)
Tax credits (0.6) 0.6  (4.5)
Internal restructuring —  —  7.0 
Valuation allowance 2.6  5.6  (0.9)
Other (0.3) —  1.0 
Effective tax rate as reported 14.8  % 31.3  % 7.9  %
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities are as follows (in millions): 
December 31,
2022 2021
Deferred tax assets    
Net operating loss (“NOL”) carryforwards
Federal $ 1,968  $ 3,231 
Foreign —  2 
State 177  244 
Federal and state tax credits 66  108 
Derivative instruments 1,345  951 
Operating lease liabilities 542  438 
Other 311  146 
Less: valuation allowance (143) (63)
Total deferred tax assets 4,266  5,057 
Deferred tax liabilities  
Investment in partnerships (211) (716)
Property, plant and equipment (2,646) (2,638)
Operating lease assets (536) (431)
Other (9) (68)
Total deferred tax liabilities (3,402) (3,853)
Net deferred tax assets $ 864  $ 1,204 
Summary of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of our unrecognized tax benefits is as follows (in millions): 
Year Ended December 31,
2022 2021
Balance at beginning of the year $ 65  $ 62 
Additions based on tax positions related to current year 10  3 
Additions for tax positions of prior years —  — 
Reductions for tax positions of prior years (1) — 
Settlements —  — 
Balance at end of the year $ 74  $ 65