Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Canadian Provincial Taxes

All of our Canadian operations are conducted by entities that are treated as corporations for Canadian tax purposes (flow through for U.S. income tax purposes) and that are subject to Canadian federal and provincial taxes. During the second quarter of 2019, the Alberta government enacted legislation that reduces the Alberta provincial corporate income tax rate from 12% to 8% over the period from July 1, 2019 through January 1, 2022. As a result, during the second quarter of 2019, we recognized a reduction of our deferred income tax liability of approximately $60 million and a corresponding deferred tax benefit.

Exchange Right Exercises

As a result of the exchange of the ownership interests in AAP by EMG and Oxy during the nine months ended September 30, 2019, we recognized a deferred tax asset. See Note 9 for additional information regarding these transactions. See Note 14 to our Consolidated Financial Statements included in Part IV of our 2018 Annual Report on Form 10-K for information regarding the recognition of deferred tax assets associated with Exchange Right exercises.