Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The jurisdictional components of income (loss) before income taxes and non-controlling interest on our Consolidated Statements of Operations are as follows (in millions):
  Year Ended December 31,
  2023 2022 2021
U.S. $ 11,176  $ (1,575) $ (2,317)
International 3,402  4,669  39 
Total income (loss) before income taxes and non-controlling interest $ 14,578  $ 3,094  $ (2,278)
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,
2023 2022 2021
Current:
Federal $ 130  $ 6  $ — 
State 1  2  3 
Foreign (1) 11  5 
Total current 130  19  8 
Deferred:
Federal 2,377  320  (633)
State 15  118  (89)
Foreign (3) 2  1 
Total deferred 2,389  440  (721)
Total income tax provision (benefit) $ 2,519  $ 459  $ (713)
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,
2023 2022 2021
U.S. federal statutory tax rate 21.0  % 21.0  % 21.0  %
Income not taxable to Cheniere (3.1) (8.2) 7.2 
State tax, net of federal benefit 0.1  0.5  (2.5)
Foreign-derived intangible income deduction (0.7) (1.2) — 
Valuation allowance —  2.6  5.6 
Other —  0.1  — 
Effective tax rate as reported 17.3  % 14.8  % 31.3  %
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities are as follows (in millions): 
December 31,
2023 2022
Deferred tax assets    
Net operating loss (“NOL”) carryforwards
Federal $ 915  $ 1,968 
State 163  177 
Federal and state tax credits 33  66 
Derivative instruments 98  1,345 
Operating lease liabilities 550  542 
Other 298  311 
Less: valuation allowance (1) (147) (143)
Total deferred tax assets 1,910  4,266 
Deferred tax liabilities  
Investment in partnerships (309) (211)
Property, plant and equipment (2,564) (2,646)
Operating lease assets (538) (536)
Other (18) (9)
Total deferred tax liabilities (3,429) (3,402)
Net deferred tax assets (liabilities) $ (1,519) $ 864 
(1)Valuation allowance primarily related to state NOL carryforward deferred tax assets and increased by $4 million and $80 million during the years ended December 31, 2023 and 2022, respectively, and decreased by $127 million during year ended December 31, 2021.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amounts of our unrecognized tax benefits is as follows (in millions): 
Year Ended December 31,
2023 2022
Balance at beginning of the year $ 74  $ 65 
Additions based on tax positions related to current year —  10 
Reductions for tax positions of prior years (1) (1)
Balance at end of the year $ 73  $ 74