Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes [Abstract]

Provision (Benefit) for Income Taxes

(in millions)		2018		2017		2016
Current:
Federal	$	(5)	$	(22)	$	(6)
State		6		–		(1)
		1		(22)		(7)
Deferred:
Federal		–		(71)		(22)
State		–		–		–
		–		(71)		(22)
Provision (benefit) for income taxes	$	1	$	(93)	$	(29)

Reconciliation of Provision for Income Taxes

(in millions)	2018		2017		2016
Expected provision (benefit) at federal statutory rate	$	113	$	333	$	(935)
Increase (decrease) resulting from:
State income taxes, net of federal income tax effect		13		16		(79)
Rate impacts due to tax reform		–		370		–
Changes to valuation allowance due to tax reform		–		(370)		–
AMT tax reform impact – valuation allowance release		–		(68)		–
Changes in uncertain tax positions		–		(5)		(19)
Change in valuation allowance		(121)		(364)		1,002
Removal of sequestration fee on AMT receivables		(5)		–		–
Other		1		(5)		2
Provision (benefit) for income taxes	$	1	$	(93)	$	(29)

Components of Deferred Tax Balances

(in millions)	2018		2017
Deferred tax liabilities:
Differences between book and tax basis of property	$	226	$	395
Derivative activity		12		19
Other		2		1
		240		415
Deferred tax assets:
Accrued compensation		33		29
Accrued pension costs		10		14
Asset retirement obligations		15		41
Net operating loss carryforward		777		1,043
Other		14		20
		849		1,147
Valuation allowance		(609)		(732)
Net deferred tax liability	$	–	$	–

Reconciliation of Changes to the Valuation Allowance

(in millions)
Valuation allowance as of December 31, 2017	$	732
Changes based on 2018 activity		(121)
Equity – pension benefits in OCI		(2)
Valuation allowance as of December 31, 2018	$	609

Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits

(in millions)	2018		2017
Unrecognized tax benefits at beginning of period	$	12	$	17
Additions based on tax positions related to the current year		–		–
Additions to tax positions of prior years		–		–
Reductions to tax positions of prior years		(5)		(5)
Unrecognized tax benefits at end of period	$	7	$	12