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Income Taxes (Tables) | 6 Months Ended
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Jun. 30, 2023
Income Taxes [Abstract] |
Federal and State Income Tax Provision | Our federal, state and foreign income tax benefit (provision) is summarized below:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Current portion of income tax benefit (provision): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (14 | ) |  | $ | – |  |  | $ | (10 | ) |  | $ | – |
State |  |  | (10 | ) |  |  | (7 | ) |  |  | (21 | ) |  |  | (17 | )
Foreign |  |  | – |  |  |  | (3 | ) |  |  | – |  |  |  | (3 | )
Total current portion |  |  | (24 | ) |  |  | (10 | ) |  |  | (31 | ) |  |  | (20 | )
Deferred portion of income tax benefit (provision): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 11 |  |  |  | (6 | ) |  |  | 4 |  |  |  | (13 | )
State |  |  | – |  |  |  | (1 | ) |  |  | 4 |  |  |  | (3 | )
Total deferred portion |  |  | 11 |  |  |  | (7 | ) |  |  | 8 |  |  |  | (16 | )
Total provision for income taxes |  | $ | (13 | ) |  | $ | (17 | ) |  | $ | (23 | ) |  | $ | (36 | )
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, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Pre-Tax Net Book Income (“NBI”) |  | $ | 1,296 |  |  | $ | 1,457 |  |  | $ | 2,728 |  |  | $ | 2,807 |
Texas Margin Tax (1) |  |  | (10 | ) |  |  | (7 | ) |  |  | (16 | ) |  |  | (19 | )
State income tax provision, net of federal benefit |  |  | – |  |  |  | (1 | ) |  |  | (1 | ) |  |  | (1 | )
Federal income tax provision computed by applying the federal statutory rate to NBI of corporate entities |  |  | (3 | ) |  |  | (4 | ) |  |  | (6 | ) |  |  | (7 | )
Other |  |  | – |  |  |  | (5 | ) |  |  | – |  |  |  | (9 | )
Provision for income taxes |  | $ | (13 | ) |  | $ | (17 | ) |  | $ | (23 | ) |  | $ | (36 | )
Effective income tax rate |  |  | (1.0 | )% |  |  | (1.2 | )% |  |  | (0.8 | )% |  |  | (1.3 | )%
(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.
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:
|  | June 30, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax liabilities: |  |  |  |  |  |
Attributable to investment in OTA |  | $ | 423 |  |  | $ | 406 |
Attributable to property, plant and equipment |  |  | 127 |  |  |  | 133 |
Attributable to investments in other entities |  |  | 5 |  |  |  | 5 |
Other |  |  | 60 |  |  |  | 60 |
Total deferred tax liabilities |  |  | 615 |  |  |  | 604 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryovers (1) |  |  | 42 |  |  |  | 22 |
Temporary differences related to Texas Margin Tax |  |  | 4 |  |  |  | 4 |
Total deferred tax assets |  |  | 46 |  |  |  | 26 |
Valuation allowance |  |  | 22 |  |  |  | 22 |
Total deferred tax assets, net of valuation allowance |  |  | 24 |  |  |  | 4 |
Total net deferred tax liabilities |  | $ | 591 |  |  | $ | 600 |
(1) | The loss amount presented as of June 30, 2023 has an indefinite carryover period. All losses are subject to limitations on their utilization.

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