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Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2020
Income Taxes [Abstract]  
Federal and State Income Tax Provision
Our federal, state and foreign income tax benefit (provision) is summarized below:

 
  
For the Three Months
Ended September 30,
    
For the Nine Months
Ended September 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
Current portion of income tax benefit (provision):
                        
Federal
  
$
5.3
    
$
0.4
    
$
3.0
    
$
(0.1
)
State
    
(4.7
)
    
(9.1
)
    
(13.4
)
    
(25.6
)
Foreign
    
0.2
      
–
      
–
      
(0.8
)
Total current portion
    
0.8
      
(8.7
)
    
(10.4
)
    
(26.5
)
Deferred portion of income tax benefit (provision):
                                
    Federal
    
18.7
      
(0.3
)
    
145.1
      
(0.2
)
    State
    
(0.4
)
    
(6.4
)
    
3.9
      
(10.9
)
Foreign
    
–
      
–
      
–
      
0.2
  
Total deferred portion
    
18.3
      
(6.7
)
    
149.0
      
(10.9
)
Total benefit from (provision for) income taxes
  
$
19.1
    
$
(15.4
)
  
$
138.6
    
$
(37.4
)
Reconciliation of Provision for Income Taxes
The following table presents the components of our consolidated benefit from (provision for) income taxes for the periods indicated (dollars in millions):

 
  
For the Three Months
Ended September 30,
    
For the Nine Months
Ended September 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
Deferred tax benefit (expense) attributable to OTA
  
$
21.3
          
$
158.0
        
Texas Margin Tax
    
(7.2
)
  
$
(15.5
)
    
(21.9
)
  
$
(36.5
)
Other
    
5.0
      
0.1
      
2.5
      
(0.9
)
Benefit from (provision for) income taxes
  
$
19.1
    
$
(15.4
)
  
$
138.6
    
$
(37.4
)
A reconciliation of the benefit from (provision for) income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:

 
  
For the Three Months
Ended September 30,
    
For the Nine Months
Ended September 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
Pre-Tax Net Book Income (“NBI”)
  
$
1,064.9
    
$
1,060.2
    
$
3,381.2
    
$
3,599.1
  
                                 
Texas Margin Tax (1)
    
(7.2
)
    
(15.5
)
    
(21.9
)
    
(36.5
)
State income tax benefit (provision), net of federal benefit (2)
    
1.6
      
–
      
9.7
      
(0.3
)
Federal income tax benefit (provision) computed by applying
     the federal statutory rate to NBI of corporate entities
    
25.1
      
0.1
      
83.4
      
(0.6
)
Federal benefit attributable to settlement of
Liquidity Option (2)
    
–
      
–
      
67.8
      
–
  
Other differences
    
(0.4
)
    
–
      
(0.4
)
    
–
  
Benefit from (provision for) income taxes
  
$
19.1
    
$
(15.4
)
  
$
138.6
    
$
(37.4
)
                                 
Effective income tax rate
    
1.8
%
    
(1.5
)%
    
4.1
%
    
(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
The following table presents the significant components of deferred tax assets and deferred tax liabilities at the dates indicated:

   
September 30,
    
December 31,
  
 
  
2020
    
2019
  
Deferred tax liabilities:
            
Attributable to investment in OTA
  
$
353.9
        
Attributable to property, plant and equipment
    
107.9
    
$
100.2
  
Attributable to investments in other entities
    
4.2
      
3.3
  
     Total deferred tax liabilities
    
466.0
      
103.5
  
Less deferred tax assets:
                
Net operating loss carryovers (1)
    
0.1
      
0.1
  
Temporary differences related to Texas Margin Tax
    
2.6
      
3.0
  
Total deferred tax assets
    
2.7
      
3.1
  
Total net deferred tax liabilities
  
$
463.3
    
$
100.4
  

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