Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Summary of components of income tax expense

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


	Year Ended December 31,
	2022		2021		2020
Current income tax expense:
State income tax	$	1	$	2	$	—
Canadian federal and provincial income tax	83		48		51
Total current income tax expense	$	84	$	50	$	51

Deferred income tax expense/(benefit):
Federal income tax	$	46	$	16	$	(149)
State income tax	11		23		1
Canadian federal and provincial income tax	105		23		(70)
Total deferred income tax expense/(benefit)	$	162	$	62	$	(218)
Total income tax expense/(benefit)	$	246	$	112	$	(167)

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,
	2022			2021			2020
Income/(loss) before tax	$	1,409		$	712		$	(2,607)
Net (income)/loss attributable to noncontrolling interests	(995)			(540)			1,872
Income taxes attributable to noncontrolling interests	(189)			(73)			19
	$	225		$	99		$	(716)
Federal statutory income tax rate	21		%	21		%	21		%
Income tax expense/(benefit) at statutory rate	$	47		$	21		$	(150)


Deferred tax rate adjustment	7			17			11
State income tax, net of federal benefit	3			1			(9)
Income taxes attributable to noncontrolling interests:
Canadian federal and provincial income tax	188			71			(19)

State income tax	1			2			—
Total income tax expense/(benefit)	$	246		$	112		$	(167)

Summary of 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,
	2022		2021
Deferred tax assets:
Investment in partnerships	$	623	$	729
Net operating losses	686		633
Derivative instruments	—		39
Lease liabilities	45		48
Other	16		17
Total deferred tax assets	1,370		1,466

Deferred tax liabilities:
Property and equipment in excess of tax values	(515)		(531)
Derivative instruments	(46)		—
Lease assets	(42)		(47)
Other	(3)		(3)
Total deferred tax liabilities	(606)		(581)
Net deferred tax assets	$	764	$	885

Balance sheet classification of deferred tax assets/(liabilities):
Deferred tax asset	$	1,309	$	1,362
Other long-term liabilities and deferred credits	(545)		(477)
	$	764	$	885