Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

13.  Income Taxes

For the three months ended June 30, 2022, we recorded an income tax expense of $2 million on pre-tax loss of $285 million compared to an income tax expense of $59 million on pre-tax loss of $3 million for the three months ended June 30, 2021. Our effective income tax rate was 0.7% and (1,966.7%) for the three months ended June 30, 2022 and 2021, respectively.

For the three months ended June 30, 2022, the effective tax rate was lower than the statutory federal rate of 21%, for corporations, primarily due to partnership loss for which there was no tax expense, as such income is allocated to the partners. For the three months ended June 30, 2021, the effective tax rate was lower than the statutory federal tax rate of 21%, primarily due to permanent differences on dividends and changes in the valuation allowance.

For the six months ended June 30, 2022, we recorded an income tax expense of $100 million on pre-tax income of $698 million compared to an income tax expense of $76 million on pre-tax income of $613 million for the six months ended June 30, 2021. Our effective income tax rate was 14.3% and 12.4% for the six months ended June 30, 2022 and 2021, respectively.

For the six months ended June 30, 2022 and 2021, the effective tax rate was lower than the statutory federal rate of 21%, for corporations, primarily due to partnership income for which there was no tax expense, as such income is allocated to the partners.