INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of differences between the U.S. federal income tax rate and the Company's effective tax rate

Total income tax expense (benefit) differs from the amounts computed by applying the U.S. federal income tax rate to pre-tax income (loss) as follows:



	For the years ended December 31,
	2019		2018		2017
U.S. federal statutory tax rate	21	%	21	%	(35	)%
State income taxes, net	7		6		(6	)
Exclusion of tax attributable to noncontrolling interests, net	(35	)	(5	)	—
Decrease in U.S. federal corporate tax rate	—		—		91
Tax credits, net	(9	)	(6	)	(19	)
Nondeductible compensation, net	3		—		—
Stock-based compensation, net	—		—		1
Change in valuation allowance, net	14		(17	)	(33	)
Other, net	—		1		1
Effective tax rate	1	%	—	%	—	%

Tax effects of temporary differences resulting in deferred income taxes

The tax effects of temporary differences resulting in deferred income tax assets and liabilities at December 31, 2019 and 2018 were as follows:



	2019						2018
	Deferred Tax Assets			Deferred Tax Liabilities			Deferred Tax Assets			Deferred Tax Liabilities
	(in millions)
Debt	$	176		$	—		$	253		$	—
Property, plant and equipment	—			(517		)	11			(316		)
Postretirement benefit accruals	40			—			27			—
Deferred compensation and benefits	55			—			56			—
Asset retirement obligations	155			—			129			—
Net operating loss and tax credit carryforwards	457			—			314			—
Business interest expense carryforward	194			—			82			—
Investment in partnerships	110			—			93			—
Other	36			(60		)	17			(41		)
Subtotal	1,223			(577		)	982			(357		)
Valuation allowance	(646		)	—			(625		)	—
Total deferred taxes	$	577		$	(577	)	$	357		$	(357	)

Reconciliation of unrecognized tax benefits

The following is a reconciliation of unrecognized tax benefits:



	For the years ended December 31,
	2019		2018		2017
	(in millions)
Unrecognized tax benefits – January 1	$	25	$	25	$	25
Gross increases – tax positions in prior year	44		—		—
Gross increases – tax positions in current year	32		—		—
Unrecognized tax benefits – December 31	$	101	$	25	$	25