XML 68 R24.htm IDEA: XBRL DOCUMENT
v3.22.4

INCOME TAXES (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2022
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,
|  | 2022 |  | 2021 |  | 2020
|  | (Thousands of dollars)
Current tax expense |  |  |  |  |  |
Federal |  | $ | 52,012 |  |  | $ | 2,897 |  |  | $ | 980 |
State |  | 11,993 |  |  | 9,544 |  |  | 1,797 |
Total current tax expense |  | 64,005 |  |  | 12,441 |  |  | 2,777 |
Deferred tax expense |  |  |  |  |  |
Federal |  | 422,577 |  |  | 433,469 |  |  | 154,068 |
State |  | 40,842 |  |  | 38,588 |  |  | 32,662 |
Total deferred tax expense |  | 463,419 |  |  | 472,057 |  |  | 186,730 |
Total provision for income taxes |  | $ | 527,424 |  |  | $ | 484,498 |  |  | $ | 189,507 |
The following table is a reconciliation of our income tax provision for the periods indicated:
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
|  | (Thousands of dollars)
Income before income taxes |  | $ | 2,249,645 |  |  | $ | 1,984,204 |  |  | $ | 802,316 |
Federal statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Provision for federal income taxes |  | 472,425 |  |  | 416,683 |  |  | 168,486 |
State income taxes, net of federal benefit |  | 54,217 |  |  | 40,092 |  |  | 13,580 |
Deferred tax rate change, inclusive of valuation allowance |  | (1,382) |  |  | 6,350 |  |  | 20,879 |
Excess tax benefits from share-based compensation |  | (1,324) |  |  | (1,968) |  |  | (7,380) |
Other, net (a) |  | 3,488 |  |  | 23,341 |  |  | (6,058) |
Income tax provision |  | $ | 527,424 |  |  | $ | 484,498 |  |  | $ | 189,507 |
(a) The year ended December 31, 2021, includes $19.4 million impact from previously recognized gains on certain benefit plan investments. 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, 2022 |  | December 31, 2021
Deferred tax assets |  | (Thousands of dollars)
Employee benefits and other accrued liabilities |  | $ | 82,194 |  |  | $ | 95,952 |
Federal net operating loss |  | 1,104,617 |  |  | 1,337,050 |
State net operating loss and benefits |  | 196,369 |  |  | 216,181 |
Derivative instruments |  | 18,759 |  |  | 118,063 |
Other (a) |  | 30,048 |  |  | 4,863 |
Total deferred tax assets |  | 1,431,987 |  |  | 1,772,109 |
Valuation allowance for state net operating loss and tax credits |  |  |  |
Carryforward expected to expire prior to utilization |  | (74,997) |  |  | (84,755) |
Net deferred tax assets |  | 1,356,990 |  |  | 1,687,354 |
Deferred tax liabilities |  |  |  |
Excess of tax over book depreciation |  | 94,815 |  |  | 84,692 |
Investment in partnerships (b) |  | 3,000,700 |  |  | 2,769,352 |
Total deferred tax liabilities |  | 3,095,515 |  |  | 2,854,044 |
Net deferred tax liabilities |  | $ | 1,738,525 |  |  | $ | 1,166,690 |
(a) The year ended December 31, 2022, includes an indefinite-lived interest limitation carryforward of $24.7 million. (b) Due primarily to excess of tax over book depreciation. In August 2022, the U.S. government enacted the Inflation Reduction Act into law. The Inflation Reduction Act includes a new corporate alternative minimum tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average AFSI exceeding $1.0 billion over a three-year period. The CAMT is effective for tax years beginning after December 31, 2022. We expect the CAMT to have an impact on our cash taxes beginning with the 2024 tax year. When we become subject to the CAMT and our CAMT liability is greater than our regular U.S. federal income tax liability for any particular year, the CAMT liability would effectively accelerate our future U.S. federal income tax obligations but provide an offsetting credit against our regular U.S. federal income tax liability for future years. As a result, we expect that any impact is limited to timing differences in future tax years. As of December 31, 2022, we have federal net operating loss carryforwards of $5.3 billion, the majority of which have an indefinite carryforward period. We expect to generate taxable income and utilize these net operating loss carryforwards in future periods. We also have loss and credit carryovers in multiple states, $2.7 billion of which have an indefinite carryforward period and $1.7 billion of which will expire between 2024 and 2039. We have deferred tax assets related to federal and state net operating loss and credit carryforwards of $1.3 billion and $1.6 billion in 2022 and 2021, respectively. We believe that it is more likely than not that the tax benefits of certain state carryforwards will not be utilized; therefore, we recorded a valuation allowance, which was reduced by $1.4 million in 2022, and increased by $6.4 million and $20.9 million in 2021 and 2020, respectively, through net income

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