Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense

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


	Year Ended December 31,
	2023		2022		2021
Current income tax expense:
State income tax	$	2	$	1	$	2
Canadian federal and provincial income tax	143		83		48
Total current income tax expense	$	145	$	84	$	50

Deferred income tax expense/(benefit):
Federal income tax	$	55	$	46	$	16
State income tax	13		11		23
Canadian federal and provincial income tax	(24)		105		23
Total deferred income tax expense	$	44	$	162	$	62
Total income tax expense	$	189	$	246	$	112

Schedule of Differences Between 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,
	2023			2022			2021
Income before tax	$	1,614		$	1,409		$	712
Net income attributable to noncontrolling interests	(1,227)			(995)			(540)
Income taxes attributable to noncontrolling interests	(121)			(189)			(73)
	$	266		$	225		$	99
Federal statutory income tax rate	21		%	21		%	21		%
Income tax expense at statutory rate	$	56		$	47		$	21


Deferred tax rate adjustment	9			7			17
State income tax, net of federal benefit	3			3			1
Income taxes attributable to noncontrolling interests:
Canadian federal and provincial income tax	119			188			71

State income tax	2			1			2
Total income tax expense	$	189		$	246		$	112

Schedule 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,
	2023		2022
Deferred tax assets:
Investment in partnerships	$	523	$	623
Net operating losses	716		686

Lease liabilities	40		45
Other	45		16
Total deferred tax assets	1,324		1,370

Deferred tax liabilities:
Property and equipment in excess of tax values	(573)		(515)
Derivative instruments	(6)		(46)
Lease assets	(38)		(42)
Other	(3)		(3)
Total deferred tax liabilities	(620)		(606)
Net deferred tax assets	$	704	$	764

Balance sheet classification of deferred tax assets/(liabilities):
Deferred tax asset	$	1,239	$	1,309
Other long-term liabilities and deferred credits	(535)		(545)
	$	704	$	764