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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Taxes [Abstract] |
Federal and State Income Tax Provision | The following table presents the components of our consolidated benefit from (provision for) income taxes for the years indicated:
|  | For the Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Deferred tax benefit (provision) attributable to OTA |  | $ | (27.6 | ) |  | $ | 155.3 |  |  | $ | – |
Texas Margin Tax |  |  | (41.9 | ) |  |  | (32.1 | ) |  |  | (44.2 | )
Other |  |  | (0.5 | ) |  |  | 1.1 |  |  |  | (1.4 | )
Benefit from (provision for) income taxes |  | $ | (70.0 | ) |  | $ | 124.3 |  |  | $ | (45.6 | )
Our federal, state and foreign income tax benefit (provision) is summarized below:
|  | For the Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current portion of income tax benefit (provision): |  |  |  |  |  |  |  |  |
Federal |  | $ | 2.0 |  |  | $ | 2.9 |  |  | $ | 1.3 |
State |  |  | (31.1 | ) |  |  | (25.6 | ) |  |  | (25.7 | )
Foreign |  |  | (1.1 | ) |  |  | (0.6 | ) |  |  | (1.2 | )
Total current portion |  |  | (30.2 | ) |  |  | (23.3 | ) |  |  | (25.6 | )
Deferred portion of income tax benefit (provision): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (26.9 | ) |  |  | 142.0 |  |  |  | (1.6 | )
State |  |  | (12.9 | ) |  |  | 5.6 |  |  |  | (18.5 | )
Foreign |  |  | – |  |  |  | – |  |  |  | 0.1 |
Total deferred portion |  |  | (39.8 | ) |  |  | 147.6 |  |  |  | (20.0 | )
Total benefit from (provision for) income taxes |  | $ | (70.0 | ) |  | $ | 124.3 |  |  | $ | (45.6 | )
Reconciliation of Provision for Income Taxes | A reconciliation of the benefit from (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 Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Pre-Tax Net Book Income (“NBI”) |  | $ | 4,825.3 |  |  | $ | 3,761.4 |  |  | $ | 4,732.7 |
Texas Margin Tax (1) |  |  | (41.9 | ) |  |  | (32.1 | ) |  |  | (44.2 | )
State income tax benefit (provision), net of federal benefit (2) |  |  | (1.3 | ) |  |  | 9.2 |  |  |  | (0.5 | )
Federal income tax benefit (provision) computed by applying the federal statutory rate to NBI of corporate entities |  |  | (13.1 | ) |  |  | 80.1 |  |  |  | (0.9 | )
Federal benefit attributable to settlement of Liquidity Option Agreement (2) |  |  | – |  |  |  | 67.8 |  |  |  | – |
Valuation allowance (3) |  |  | (14.2 | ) |  |  | – |  |  |  | – |
Other |  |  | 0.5 |  |  |  | (0.7 | ) |  |  | – |
Benefit from (provision for) income taxes |  | $ | (70.0 | ) |  | $ | 124.3 |  |  | $ | (45.6 | )
Effective income tax rate |  |  | (1.5 | )% |  |  | 3.3 | % |  |  | (1.0 | )%
(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.
(3) | Management believes that it is more likely than not that the net deferred tax assets attributable to OTA will not be fully realizable; therefore, we have provided for a valuation allowance.
Components of Deferred Tax Assets and Liabilities | The following table presents the significant components of deferred tax assets and deferred tax liabilities at the dates indicated:
|  | December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax liabilities: |  |  |  |  |  |
Attributable to investment in OTA |  | $ | 384.2 |  |  | $ | 356.6 |
Attributable to property, plant and equipment |  |  | 118.0 |  |  |  | 106.4 |
Attributable to investments in other entities |  |  | 5.2 |  |  |  | 4.1 |
Other |  |  | 13.5 |  |  |  | – |
Total deferred tax liabilities |  |  | 520.9 |  |  |  | 467.1 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryovers (1) |  |  | 14.3 |  |  |  | 0.1 |
Temporary differences related to Texas Margin Tax |  |  | 2.8 |  |  |  | 2.3 |
Total deferred tax assets |  |  | 17.1 |  |  |  | 2.4 |
Valuation allowance |  |  | 14.2 |  |  |  | – |
Total deferred tax assets, net of valuation allowance |  |  | 2.9 |  |  |  | 2.4 |
Total net deferred tax liabilities |  | $ | 518.0 |  |  | $ | 464.7 |
(1) | Of the loss amount presented as of December 31, 2021, $0.1 million expires in various years between 2022 and 2037. The remaining $14.2 million has an indefinite carryover period. All losses are subject to limitations on their utilization.

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- 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=121826272&loc=d3e32537-109319 + Details
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