Annual report pursuant to Section 13 and 15(d)

Income Tax (Tables)

v3.8.0.1
Income Tax (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Reconciliation between Statutory Rates and Effective Tax Rates
Below is a reconciliation between the statutory rates as of December 31, 2017 and our effective tax rates for the years ended December 31:

 

         2017             2016             2015      

Federal statutory income tax rate

      35 %      35 %      35 % 

Reduction in rate resulting from:

       

Share-based compensation

      (8 )%      (373 )%      —   % 

Equity method investments

      (83 )%      (847 )%      5 % 

Other

      6 %      9 %      —   % 

Valuation allowance

      49 %      1,176 %      (41 )% 

TCJA rate revaluation adjustment

      1 %      —   %      —   % 
  

 

 

    

 

 

    

 

 

  

Effective tax rate

      —   %      —   %      (1 )% 
  

 

 

    

 

 

    

 

 
Summary of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) include the following as of December 31:

 

         2017              2016      
     (in millions)  

Receivables basis difference

    $ (8 )     $ (11 ) 

Equity method investments

      (22 )       (14 ) 
  

 

 

     

 

 

  

Gross deferred tax liabilities

      (30 )       (25 ) 
  

 

 

     

 

 

  

Net operating loss (NOL) carryforwards

      27        29  

Tax credit carryforwards

      10        —    

Share-based compensation

      3        3  

Valuation allowance

      (11 )       (7 ) 
  

 

 

     

 

 

  

Gross deferred tax assets

      29        25  
  

 

 

     

 

 

  

Net deferred tax liabilities

    $ (1 )    $ —    
  

 

 

     

 

 

  

Cash Dividends Paid for Federal Income Tax Purposes

For federal income tax purposes, the cash dividends paid for the years ended December 31, 2017 and 2016 are characterized as follows:

 

         2017             2016      

Common distributions

     

Ordinary income

      15%       0%  

Return of capital

      85%       100%  
  

 

 

    

 

 

  
     100%     100%