XML 48 R37.htm IDEA: XBRL DOCUMENT
v3.20.2

Income Taxes (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2020
Income Taxes [Abstract] |
Federal and State Income Tax Provision | Our federal, state and foreign income tax provision (benefit) is summarized below:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Current portion of income tax provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2.2 |  |  | $ | (0.4 | ) |  | $ | 2.3 |  |  | $ | 0.5 |
State |  |  | 4.1 |  |  |  | 7.5 |  |  |  | 8.7 |  |  |  | 16.5 |
Foreign |  |  | – |  |  |  | 0.2 |  |  |  | 0.2 |  |  |  | 0.8 |
Total current portion |  |  | 6.3 |  |  |  | 7.3 |  |  |  | 11.2 |  |  |  | 17.8 |
Deferred portion of income tax provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 46.4 |  |  |  | – |  |  |  | (126.4 | ) |  |  | (0.1 | )
State |  |  | 7.0 |  |  |  | 2.6 |  |  |  | (4.3 | ) |  |  | 4.5 |
Foreign |  |  | – |  |  |  | (0.2 | ) |  |  | – |  |  |  | (0.2 | )
Total deferred portion |  |  | 53.4 |  |  |  | 2.4 |  |  |  | (130.7 | ) |  |  | 4.2 |
Total provision for (benefit from) income taxes |  | $ | 59.7 |  |  | $ | 9.7 |  |  | $ | (119.5 | ) |  | $ | 22.0 |
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Pre-Tax Net Book Income (“NBI”) |  | $ | 1,120.5 |  |  | $ | 1,246.2 |  |  | $ | 2,316.3 |  |  | $ | 2,538.9 |
Texas Margin Tax (1) |  |  | 7.0 |  |  |  | 10.1 |  |  |  | 14.7 |  |  |  | 21.0 |
State income tax provision (benefit), net of federal benefit (2) |  |  | 3.2 |  |  |  | 0.1 |  |  |  | (8.1 | ) |  |  | 0.3 |
Federal income tax provision (benefit) computed by applying the federal statutory rate to NBI of corporate entities |  |  | 49.5 |  |  |  | (0.5 | ) |  |  | (58.3 | ) |  |  | 0.7 |
Federal benefit attributable to settlement of Liquidity Option (2) |  |  | – |  |  |  | – |  |  |  | (67.8 | ) |  |  | – |
Provision for (benefit from) income taxes |  | $ | 59.7 |  |  | $ | 9.7 |  |  | $ | (119.5 | ) |  | $ | 22.0 |
Effective income tax rate |  |  | 5.3 | % |  |  | 0.8 | % |  |  | (5.2 | )% |  |  | 0.9 | %
(1) | Although the Texas Margin Tax is not considered a state income tax, it has the characteristics of an income tax since it is determined by applying a tax rate to a base that considers our Texas-sourced revenues and expenses.
(2) | The total benefit recognized in income tax expense on March 5, 2020 from settlement of the Liquidity Option was $72.2 million, which is comprised of $4.4 million of state income tax benefit and $67.8 million of federal income tax benefit.
Components of Deferred Tax Assets and Liabilities |
Deferred tax liability at March 5, 2020 |  |  |  |  | $ | 439.7 |
Impact of change in fair value of units on deferred tax liability: |  |  |  |  |  |  |
Change in fair value of 54,807,352 EPD common units held by OTA (1) |  | $ | (301.4 | ) |  |  |  |
Multiplied by estimated blended federal and state tax rate |  |  | 22.4 | % |  |  | (67.4 | )
Other, including interim allocations of taxable income |  |  |  |  |  |  | 2.9 |
Deferred tax liability at June 30, 2020 |  |  |  |  |  | $ | 375.2 |
(1) | The market price of EPD common units declined from $23.67 per unit at March 5, 2020 (settlement date of the Liquidity Option) to $18.17 per unit on June 30, 2020.
The following table presents the significant components of deferred tax assets and deferred tax liabilities at the dates indicated:
|  | June 30, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
Deferred tax liabilities: |  |  |  |  |  |
Attributable to investment in OTA |  | $ | 375.2 |  |  |  |
Attributable to property, plant and equipment |  |  | 105.6 |  |  | $ | 100.2 |
Attributable to investments in other entities |  |  | 3.4 |  |  |  | 3.3 |
Total deferred tax liabilities |  |  | 484.2 |  |  |  | 103.5 |
Less deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryovers (1) |  |  | 0.1 |  |  |  | 0.1 |
Temporary differences related to Texas Margin Tax |  |  | 2.5 |  |  |  | 3.0 |
Total deferred tax assets |  |  | 2.6 |  |  |  | 3.1 |
Total net deferred tax liabilities |  | $ | 481.6 |  |  | $ | 100.4 |
(1) | These losses expire in various years between 2020 and 2037 and are subject to limitations on their utilization.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration