Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Components of income (loss) before income taxes and non-controlling interest on our Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 are as follows (in millions): 
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
U.S.
 
$
997

 
$
30

 
$
(611
)
International
 
230

 
536

 
(52
)
Total income (loss) before income taxes and non-controlling interest
 
$
1,227

 
$
566

 
$
(663
)
Schedule of Components of Income Tax Expense (Benefit)
Income tax provision included in our reported net income (loss) consisted of the following (in millions): 
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
 
Federal
 
$
—

 
$
—

 
$
—

State
 
2

 
—

 
—

Foreign
 
30

 
6

 
—

Total current
 
32

 
6

 
—

 
 
 
 
 
 
 
Deferred:
 
 
 
 
 
 
Federal
 
—

 
—

 
—

State
 
—

 
—

 
—

Foreign
 
(5
)
 
(3
)
 
2

Total deferred
 
(5
)
 
(3
)
 
2

Total income tax provision
 
$
27

 
$
3

 
$
2

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,
 
 
2018
 
2017
 
2016
U.S. federal statutory tax rate
 
21.0
 %
 
35.0
 %
 
35.0
 %
Non-controlling interest
 
(11.4
)%
 
2.9
 %
 
(2.1
)%
State tax rate
 
(0.4
)%
 
(0.2
)%
 
1.8
 %
U.S. tax reform rate change
 
—
 %
 
71.4
 %
 
—
 %
Share-based compensation
 
(0.5
)%
 
(6.2
)%
 
—
 %
Nondeductible interest expense
 
2.6
 %
 
8.5
 %
 
(6.6
)%
Foreign earnings taxed in the U.S.
 
1.4
 %
 
—
 %
 
—
 %
Foreign rate differential
 
(1.1
)%
 
(0.7
)%
 
(1.2
)%
Other
 
0.4
 %
 
(0.5
)%
 
0.3
 %
Valuation allowance
 
(9.8
)%
 
(109.7
)%
 
(27.5
)%
Effective tax rate
 
2.2
 %
 
0.5
 %
 
(0.3
)%
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows (millions): 
 
 
December 31,
 
 
2018
 
2017
Deferred tax assets
 
 
 
 
Net operating loss carryforwards and credits
 
 
 
 
Federal
 
$
848

 
$
936

Foreign
 
7

 
6

State
 
189

 
184

Federal and state tax credits
 
28

 
22

Disallowed business interest expense carryforward
 
19

 
—

Deferred gain
 
46

 
46

Other
 
50

 
77

Less: valuation allowance
 
(686
)
 
(806
)
Total deferred tax assets
 
501

 
465

 
 
 
 
 
Deferred tax liabilities
 
 

 
 

Investment in limited partnership
 
(375
)
 
(391
)
Convertible debt
 
(59
)
 
(65
)
Property, plant and equipment
 
(48
)
 
(6
)
Other
 
(11
)
 
—

Total deferred tax liabilities
 
(493
)
 
(462
)
 
 
 
 
 
Net deferred tax assets
 
$
8

 
$
3

Summary of Unrecognized Tax Benefits
Changes in the balance of unrecognized tax benefits are as follows (in millions): 
 
Year Ended December 31,
 
2018
 
2017
Balance at beginning of the year
$
62

 
$
103

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
$
61

 
$
62