INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of differences between the U.S. federal income tax rate and the company's effective tax rate

Total income tax provision (benefit) differs from the amounts computed by applying the U.S. federal income tax rate to pre-tax income (loss) as follows:


	Successor		Predecessor
	November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Years ended December 31,
					2019		2018
U.S. federal statutory tax rate	(21)	%	21	%	21	%	21	%
State income taxes, net	(7)		7		7		6
Exclusion of income attributable to noncontrolling interests, net	—		(1)		(35)		(5)
Debt restructuring, net	—		(8)		—		—
Changes in tax attributes, net	—		7		(9)		(6)
Nondeductible compensation, net	—		—		3		—
Change in valuation allowance, net	27		(27)		14		(17)
Other, net	1		1		—		1
Effective tax rate	—	%	—	%	1	%	—	%

Tax effects of temporary differences resulting in deferred income taxes

The tax effects of temporary differences resulting in deferred income tax assets and liabilities at December 31, 2020 and 2019 were as follows:


	Successor				Predecessor
	2020				2019
(in millions)	Deferred Tax Assets		Deferred Tax Liabilities		Deferred Tax Assets		Deferred Tax Liabilities
Debt	$	3	$	—	$	176	$	—
Property, plant and equipment	209		(113)		—		(517)
Postretirement benefit accruals	43		—		40		—
Deferred compensation and benefits	23		—		55		—
Asset retirement obligations	178		—		155		—
Net operating loss and tax credit carryforwards	12		—		457		—
Business interest expense carryforward	180		—		194		—
Investment in partnerships	—		—		110		—
Other	34		(20)		36		(60)
Subtotal	682		(133)		1,223		(577)
Valuation allowance	(549)		—		(646)		—
Total deferred taxes	$	133	$	(133)	$	577	$	(577)

Reconciliation of unrecognized tax benefits

The following is a reconciliation of unrecognized tax benefits in the Predecessor period:


	Predecessor
	January 1, 2020 - October 31, 2020			Years ended December 31,
(in millions)			2019			2018
Unrecognized tax benefits – beginning balance	$	101		$	25		$	25
Gross (decreases) increases – tax positions in prior year	(101)			44			—

Gross increases – tax positions in current year	—			32			—


Unrecognized tax benefits – ending balance	$	—		$	101		$	25