XML 40 R21.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The jurisdictional components of income before income taxes and non-controlling interests on our Consolidated Statements of Operations are as follows (in millions):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
U.S. |  | $ | 4,696 |  |  | $ | 11,176 |  |  | $ | (1,575) |
International |  | 607 |  |  | 3,402 |  |  | 4,669 |
Total income before income taxes and non-controlling interests |  | $ | 5,303 |  |  | $ | 14,578 |  |  | $ | 3,094 |
Income tax provision included in our reported net income consisted of the following (in millions):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |  |
Federal |  | $ | 471 |  |  | $ | 130 |  |  | $ | 6 |
State |  | 2 |  |  | 1 |  |  | 2 |
Foreign |  | 8 |  |  | (1) |  |  | 11 |
Total current |  | 481 |  |  | 130 |  |  | 19 |
Deferred: |  |  |  |  |  |
Federal |  | 319 |  |  | 2,377 |  |  | 320 |
State |  | 9 |  |  | 15 |  |  | 118 |
Foreign |  | 2 |  |  | (3) |  |  | 2 |
Total deferred |  | 330 |  |  | 2,389 |  |  | 440 |
Total income tax provision |  | $ | 811 |  |  | $ | 2,519 |  |  | $ | 459 |
Our income tax rates do not bear a customary relationship to statutory income tax rates. A reconciliation of the federal statutory income tax rate of 21% to our effective income tax rate is as follows:
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
U.S. federal statutory tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Income not taxable to Cheniere |  | (5.0) |  |  | (3.1) |  |  | (8.2) |
Foreign-derived intangible income deduction |  | (1.0) |  |  | (0.7) |  |  | (1.2) |
Valuation allowance |  | (0.7) |  |  | — |  |  | 2.6 |
Other |  | 1.0 |  |  | 0.1 |  |  | 0.6 |
Effective tax rate as reported |  | 15.3 | % |  | 17.3 | % |  | 14.8 | %
Significant components of our deferred tax assets and liabilities are as follows (in millions):
|  | December 31,
|  | 2024 |  | 2023
Deferred tax assets |  |  |  |
Net operating loss (“NOL”) carryforwards |  |  |  |
Federal |  | $ | 313 |  |  | $ | 915 |
State |  | 119 |  |  | 163 |
Tax Credits |  |  |  |
CAMT carryforward |  | 383 |  |  | — |
Other tax credits |  | 40 |  |  | 33 |
Derivative instruments |  | — |  |  | 98 |
Operating lease liabilities |  | 562 |  |  | 550 |
Other |  | 306 |  |  | 298 |
Less: valuation allowance (1) |  | (110) |  |  | (147) |
Total deferred tax assets |  | 1,613 |  |  | 1,910 |
Deferred tax liabilities |  |  |  |
Investment in partnerships |  | (305) |  |  | (309) |
Property, plant and equipment |  | (2,459) |  |  | (2,564) |
Operating lease assets |  | (548) |  |  | (538) |
Derivative instruments |  | (108) |  |  | — |
Other |  | (30) |  |  | (18) |
Total deferred tax liabilities |  | (3,450) |  |  | (3,429) |
Net deferred tax liabilities |  | $ | (1,837) |  |  | $ | (1,519) |
(1)Valuation allowance primarily relates to state NOL carryforward deferred tax assets and decreased by $37 million during the year ended December 31, 2024 primarily due to the reduced Louisiana corporate tax rate beginning January 1, 2025. The valuation allowance increased by $4 million and $80 million during the years ended December 31, 2023 and 2022, respectively. NOL and tax credit carryforwards Louisiana enacted legislation during the fourth quarter of 2024 which reduced the corporate tax rate from 7.5% to 5.5% beginning in 2025. As a result of such legislation, we remeasured our Louisiana deferred tax assets and liabilities at year end, resulting in a $43 million reduction to our Louisiana net deferred tax assets and $38 million reduction to our valuation allowance. As of December 31, 2024, we had federal and state NOL carryforwards of approximately $1.5 billion and $2.2 billion, respectively. All of our NOLs have an indefinite carryforward period. As of December 31, 2024, our CAMT credit carryforward has an indefinite life and our other tax credits expire between 2028 and 2034. Our NOL and tax credit carryforwards are not subject to, nor impacted by, any prior tax ownership change. We continue to monitor public trading activity in our shares to identify potential tax ownership changes that could impact our timing and ability to utilize such attributes. Unrecognized Tax Benefits As of December 31, 2024, we had unrecognized tax benefits of $72 million. If recognized, $65 million of unrecognized tax benefits would affect our effective tax rate in future periods. Interest and penalties related to income tax matters are recognized as part of income tax expense. Interest recognized as part of income tax provision was $6 million and $4 million as of December 31, 2024 and 2023, respectively, and cumulative accrued interest was $10 million and $4 million as of December 31, 2024 and 2023, respectively. There were no penalties associated with liabilities for unrecognized tax benefits recorded for the years ended December 31, 2024 and 2023. We do not expect the amount of our existing unrecognized tax benefit to significantly increase or decrease within the next 12 months. We are subject to tax in the U.S. and various state and foreign jurisdictions and we are subject to periodic audits and reviews by taxing authorities. Federal and United Kingdom tax returns for the years after 2017 and state tax returns for the years after 2020 remain open for examination. Tax authorities may have the ability to review and adjust carryover attributes that were generated prior to these periods if utilized in an open tax year. A reconciliation of the beginning and ending amounts of our unrecognized tax benefits is as follows (in millions):
| Year Ended December 31,
| 2024 |  | 2023
Balance at beginning of the year | $ | 73 |  |  | $ | 74 |
Reductions for tax positions of prior years | (1) |  |  | (1) |
Balance at end of the year | $ | 72 |  |  | $ | 73 |

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 tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration