XML 28 R13.htm IDEA: XBRL DOCUMENT v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

The following table presents Devon’s total income tax expense and a reconciliation of its effective income tax rate to the U.S. statutory income tax rate.

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Earnings before income taxes

 

$

1,224

 

 

$

1,262

 

 

 

 

 

 

 

 

Current income tax expense

 

$

141

 

 

$

103

 

Deferred income tax expense

 

 

80

 

 

 

164

 

Total income tax expense

 

$

221

 

 

$

267

 

 

 

 

 

 

 

 

U.S. statutory income tax rate

 

 

21

%

 

 

21

%

State income taxes

 

 

1

%

 

 

1

%

Other

 

 

(4

%)

 

 

(1

%)

Effective income tax rate

 

 

18

%

 

 

21

%

 

On August 16, 2022 the IRA was signed into law and included various income tax related provisions with effective dates generally beginning in 2023. Among the enacted provisions are a 15% corporate alternative minimum tax ("CAMT") and several new and expanded clean energy credits and incentives. Dependent upon future regulations, Devon believes it is subject to the CAMT as Devon has an average annual adjusted financial statement income that exceeds $1 billion for the three-year period ended December 31, 2022.

In the first quarter of 2023, Devon recognized income tax credits associated with its qualified research activities performed during the 2018 to 2021 tax years. The impact of these credits is included within Other in the table above.