XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Income Taxes | 9 Months Ended
--- | ---
Sep. 30, 2022
Income Taxes [Abstract] |
Income Taxes | Note 16. Income Taxes The following table presents the components of our consolidated provision for income taxes for the periods indicated (dollars in millions):
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Deferred tax expense attributable to OTA Holdings, Inc. (“OTA”) |  | $ | (7 | ) |  | $ | (7 | ) |  | $ | (21 | ) |  | $ | (20 | )
Revised Texas Franchise Tax (“Texas Margin Tax”) |  |  | (10 | ) |  |  | (10 | ) |  |  | (29 | ) |  |  | (37 | )
Other |  |  | (1 | ) |  |  | 1 |  |  |  | (4 | ) |  |  | – |
Provision for income taxes |  | $ | (18 | ) |  | $ | (16 | ) |  | $ | (54 | ) |  | $ | (57 | )
Our federal, state and foreign income tax benefit (provision) is summarized below:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Current portion of income tax benefit (provision): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (1 | ) |  | $ | 1 |  |  | $ | (1 | ) |  | $ | 2 |
State |  |  | (9 | ) |  |  | (8 | ) |  |  | (26 | ) |  |  | (25 | )
Foreign |  |  | – |  |  |  | – |  |  |  | (3 | ) |  |  | (1 | )
Total current portion |  |  | (10 | ) |  |  | (7 | ) |  |  | (30 | ) |  |  | (24 | )
Deferred portion of income tax benefit (provision): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (6 | ) |  |  | (7 | ) |  |  | (19 | ) |  |  | (19 | )
State |  |  | (2 | ) |  |  | (2 | ) |  |  | (5 | ) |  |  | (14 | )
Total deferred portion |  |  | (8 | ) |  |  | (9 | ) |  |  | (24 | ) |  |  | (33 | )
Total provision for income taxes |  | $ | (18 | ) |  | $ | (16 | ) |  | $ | (54 | ) |  | $ | (57 | )
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 September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Pre-Tax Net Book Income (“NBI”) |  | $ | 1,410 |  |  | $ | 1,198 |  |  | $ | 4,217 |  |  | $ | 3,748 |
Texas Margin Tax (1) |  |  | (10 | ) |  |  | (10 | ) |  |  | (29 | ) |  |  | (37 | )
State income tax provision, net of federal benefit |  |  | – |  |  |  | – |  |  |  | (1 | ) |  |  | (1 | )
Federal income tax provision computed by applying the federal statutory rate to NBI of corporate entities |  |  | (4 | ) |  |  | (3 | ) |  |  | (11 | ) |  |  | (10 | )
Valuation allowance (2) |  |  | (3 | ) |  |  | (3 | ) |  |  | (10 | ) |  |  | (9 | )
Other |  |  | (1 | ) |  |  | – |  |  |  | (3 | ) |  |  | – |
Provision for income taxes |  | $ | (18 | ) |  | $ | (16 | ) |  | $ | (54 | ) |  | $ | (57 | )
Effective income tax rate |  |  | (1.3 | )% |  |  | (1.3 | )% |  |  | (1.3 | )% |  |  | (1.5 | )%
(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) | Management believes that it is more likely than not that the net deferred tax assets attributable to OTA will not be fully realizable. Accordingly, we provided for a valuation allowance against OTA’s net deferred tax assets.
The following table presents the significant components of deferred tax assets and deferred tax liabilities at the dates indicated:
|  | September 30, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax liabilities: |  |  |  |  |  |
Attributable to investment in OTA |  | $ | 405 |  |  | $ | 384 |
Attributable to property, plant and equipment |  |  | 122 |  |  |  | 118 |
Attributable to investments in other entities |  |  | 6 |  |  |  | 5 |
Other |  |  | 36 |  |  |  | 14 |
Total deferred tax liabilities |  |  | 569 |  |  |  | 521 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryovers (1) |  |  | 10 |  |  |  | 14 |
Temporary differences related to Texas Margin Tax |  |  | 4 |  |  |  | 3 |
Total deferred tax assets |  |  | 14 |  |  |  | 17 |
Valuation allowance |  |  | 10 |  |  |  | 14 |
Total deferred tax assets, net of valuation allowance |  |  | 4 |  |  |  | 3 |
Total net deferred tax liabilities |  | $ | 565 |  |  | $ | 518 |
(1) | The loss amount presented as of September 30, 2022 has an indefinite carryover period. All losses 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 The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration