XML 71 R22.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

INCOME TAXES (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The following table sets forth our provision for income taxes for the periods indicated:
|  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
|  | (Thousands of dollars)
Current tax expense (benefit) |  |  |  |  |  |
Federal |  | $ | (1,278 | ) |  | $ | 260 |  |  | $ | 295 |
State |  | 963 |  |  | 1,633 |  |  | 1,670 |
Total current tax expense (benefit) |  | (315 | ) |  | 1,893 |  |  | 1,965 |
Deferred tax expense |  |  |  |  |  |  |
Federal |  | 327,806 |  |  | 319,551 |  |  | 376,728 |
State |  | 44,923 |  |  | 41,459 |  |  | 68,589 |
Total deferred tax expense |  | 372,729 |  |  | 361,010 |  |  | 445,317 |
Total provision for income taxes |  | $ | 372,414 |  |  | $ | 362,903 |  |  | $ | 447,282 |
The following table is a reconciliation of our income tax provision for the periods indicated:
|  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
|  | (Thousands of dollars)
Income before income taxes |  | $ | 1,650,991 |  |  | $ | 1,517,935 |  |  | $ | 1,040,801 |
Less: Net income attributable to noncontrolling interests |  | — |  |  | 3,329 |  |  | 205,678 |
Net income attributable to ONEOK before income taxes |  | 1,650,991 |  |  | 1,514,606 |  |  | 835,123 |
Federal statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 35.0 | %
Provision for federal income taxes |  | 346,708 |  |  | 318,067 |  |  | 292,293 |
State income taxes, net of federal benefit |  | 34,545 |  |  | 38,668 |  |  | 16,197 |
Deferred tax rate change, inclusive of valuation allowance |  | 11,340 |  |  | 5,552 |  |  | 141,283 |
Excess tax benefits from share-based compensation |  | (20,983 | ) |  | (4,644 | ) |  | — |
Other, net |  | 804 |  |  | 5,260 |  |  | (2,491 | )
Income tax provision |  | $ | 372,414 |  |  | $ | 362,903 |  |  | $ | 447,282 |
The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated:
|  | December 31, 2019 |  | December 31, 2018
Deferred tax assets |  | (Thousands of dollars)
Employee benefits and other accrued liabilities |  | $ | 99,510 |  |  | $ | 91,587 |
Federal net operating loss |  | 858,030 |  |  | 420,318 |
State net operating loss and benefits |  | 171,779 |  |  | 108,004 |
Derivative instruments |  | 83,710 |  |  | 22,108 |
Other |  | 12,769 |  |  | 13,378 |
Total deferred tax assets |  | 1,225,798 |  |  | 655,395 |
Valuation allowance for state net operating loss and tax credits |  |  |  |
Carryforward expected to expire prior to utilization |  | (94,794 | ) |  | (73,820 | )
Net deferred tax assets |  | 1,131,004 |  |  | 581,575 |
Deferred tax liabilities |  |  |  |
Excess of tax over book depreciation |  | 84,631 |  |  | 73,113 |
Investment in partnerships (a) |  | 1,582,436 |  |  | 728,193 |
Total deferred tax liabilities |  | 1,667,067 |  |  | 801,306 |
Net deferred tax assets (liabilities) |  | $ | (536,063 | ) |  | $ | (219,731 | )
(a) Due primarily to excess of tax over book depreciation. In December 2017, the Tax Cuts and Jobs Act was signed into law. The Tax Cuts and Jobs Act made extensive changes to the U.S. tax laws and included provisions that, beginning in 2018, reduced the U.S. corporate tax rate to 21% from 35%, increased expensing for capital investment, limited the interest deduction, and limited the use of net operating losses to offset future taxable income. We revalued our deferred tax assets and liabilities as required at enactment. At that time, our net deferred tax assets represented expected corporate tax benefits in the future. The reduction in the federal corporate tax rate reduced these benefits, which resulted in a one-time noncash charge to net income through income tax expense of $141.3 million, inclusive of the valuation allowance described below, recorded in the fourth quarter 2017. Tax benefits related to certain state net operating loss, tax credit carryforwards and charitable contribution carryforwards will begin expiring in 2020. Due to the Tax Cuts and Jobs Act and the impact of increased expensing for capital investment, we believe that it is more likely than not that the tax benefits of certain carryforwards will not be utilized prior to their expirations; therefore, we recorded a valuation allowance of $11.3 million, $5.6 million and $54.1 million through net income related to these tax benefits in 2019, 2018 and 2017, respectively.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration