Income Taxes (Notes)

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

8.  Income Taxes

Income tax expense included in our accompanying consolidated statements of operations is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(In millions, except percentages)
Income tax expense	$	104		$	148		$	164		$	320
Effective tax rate	(20.0)		%	21.9		%	(21.8)		%	22.6		%

While we would normally expect a federal income tax benefit from our loss before income taxes for the three and six months ended June 30, 2020, because these goodwill impairments do not generate a tax benefit, we incurred an income tax expense for these periods.

The effective tax rate for the three months ended June 30, 2020 is “negative” in relation to the statutory federal rate of 21% primarily due to the $1,000 million Natural Gas Pipelines Non-Regulated reporting unit impairment of non-tax deductible goodwill contributing to our loss before income taxes but not providing a tax benefit, partially offset by the dividend-received deductions from our investments in Citrus Corporation (Citrus) and Plantation Pipe Line Company (Plantation).

The effective tax rate for the six months ended June 30, 2020 is “negative” in relation to the statutory federal rate of 21% primarily due to the $1,600 million CO₂ and Natural Gas Pipelines Non-Regulated reporting units’ impairment of non-tax deductible goodwill contributing to our loss before income taxes but not providing a tax benefit, partially offset by the refund of alternative minimum tax sequestration credits and dividend-received deductions from our investments in Citrus and Plantation.

The effective tax rate for the three and six months ended June 30, 2019 is higher than the statutory federal rate of 21% primarily due to state and foreign taxes, partially offset by dividend-received deductions from our investments in Citrus, NGPL Holdings LLC and Plantation.