Income Taxes (Tables)

3 Months Ended

Mar. 31, 2020

Income Taxes [Abstract]

Federal and State Income Tax Provision

	For the Three Months Ended March 31,
	2020			2019
Current portion of income tax provision (benefit):
Federal	$	0.1		$	0.9
State		4.6			9.0
Foreign		0.2			0.6
Total current portion		4.9			10.5
Deferred portion of income tax provision (benefit):
Federal		(172.8	)		(0.1	)
State		(11.3	)		1.9
Total deferred portion		(184.1	)		1.8
Total provision for (benefit from) income taxes	$	(179.2	)	$	12.3

Reconciliation of Provision for Income Taxes

	For the Three Months Ended March 31,
	2020			2019
Pre-Tax Net Book Income (“NBI”)	$	1,195.8		$	1,292.7
Texas Margin Tax (1)		7.7			10.9
State income taxes (net of federal benefit) (2)		(11.3	)		0.2
Federal income taxes computed by applying the federal  statutory rate to NBI of corporate entities		(107.8	)		1.2
Federal benefit attributable to settlement of Liquidity Option (2)		(67.8	)		–
Provision for (benefit from) income taxes	$	(179.2	)	$	12.3
Effective income tax rate		(15.0	)%		1.0	%

(1)	Although the Texas Margin Tax is not considered a state income tax, it has the characteristics of an income tax since it is determined by applying a tax rate to a base that considers our Texas-sourced revenues and expenses.
(2)	The total benefit recognized in income tax expense on March 5, 2020 from settlement of the Liquidity Option was $72.2 million, which is comprised of $4.4 million of state income tax benefit and $67.8 million of federal income tax benefit.

Components of Deferred Tax Assets and Liabilities

Deferred tax liability at March 5, 2020				$	439.7
Impact of change in fair value of units on deferred tax liability:
Change in fair value of 54,807,352 EPD common units held by OTA (1)	$	(513.5	)
Multiplied by estimated blended federal and state tax rate		22.4	%		(114.8	)
Other, including interim allocations of taxable income					(0.2	)
Deferred tax liability at March 31, 2020				$	324.7

(1) The market price of EPD common units declined from $23.67 per unit at March 5, 2020 (settlement date of the Liquidity Option) to $14.30 per unit on March 31, 2020.

	March 31,		December 31,
	2020		2019
Deferred tax liabilities:
Attributable to investment in OTA	$	324.7
Attributable to property, plant and equipment		103.2	$	100.2
Attributable to investments in other entities		3.3		3.3
Total deferred tax liabilities		431.2		103.5
Less deferred tax assets:
Net operating loss carryovers (1)		0.1		0.1
Temporary differences related to Texas Margin Tax		2.9		3.0
Total deferred tax assets		3.0		3.1
Total net deferred tax liabilities	$	428.2	$	100.4

(1) These losses expire in various years between 2020 and 2037 and are subject to limitations on their utilization.