Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Components of income tax expense are as follows (in millions):


	Year Ended December 31,
	2021		2020		2019
Current income tax expense:
State income tax	$	2	$	—	$	3
Canadian federal and provincial income tax	48		51		109
Total current income tax expense	$	50	$	51	$	112

Deferred income tax expense/(benefit):
Federal income tax	$	16	$	(149)	$	89
State income tax	23		1		21
Canadian federal and provincial income tax	23		(70)		(46)
Total deferred income tax expense/(benefit)	$	62	$	(218)	$	64
Total income tax expense/(benefit)	$	112	$	(167)	$	176

Summary of differences between income tax expense based on the statutory federal income tax rate and the effective income tax expense

The difference between income tax expense based on the statutory federal income tax rate and our effective income tax expense is summarized as follows (in millions):


	Year Ended December 31,
	2021			2020			2019
Income/(loss) before tax	$	712		$	(2,607)		$	2,238
Net (income)/loss attributable to noncontrolling interests	(540)			1,872			(1,731)
Income taxes attributable to noncontrolling interests	(73)			19			(66)
	$	99		$	(716)		$	441
Federal statutory income tax rate	21		%	21		%	21		%
Income tax expense/(benefit) at statutory rate	$	21		$	(150)		$	93


Deferred tax rate adjustment	17			11			10
State income tax, net of federal benefit	1			(9)			7
Income taxes attributable to noncontrolling interests:
Canadian federal and provincial income tax	71			(19)			63

State income tax	2			—			3
Total income tax expense/(benefit)	$	112		$	(167)		$	176

Deferred tax assets and liabilities

Deferred tax assets and liabilities are aggregated by the applicable tax paying entity and jurisdiction and result from the following (in millions):


	December 31,
	2021		2020
Deferred tax assets:
Investment in partnerships	$	729	$	917
Net operating losses	633		527
Derivative instruments	39		45
Lease liabilities	48		39
Other	17		16
Total deferred tax assets	1,466		1,544

Deferred tax liabilities:
Property and equipment in excess of tax values	(531)		(475)

Lease assets	(47)		(38)
Other	(3)		(3)
Total deferred tax liabilities	(581)		(516)
Net deferred tax assets	$	885	$	1,028

Balance sheet classification of deferred tax assets/(liabilities):
Deferred tax asset	$	1,362	$	1,444
Other long-term liabilities and deferred credits	(477)		(416)
	$	885	$	1,028