Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

14.  Income Taxes

For the three months ended March 31, 2023, we recorded an income tax benefit of $16 million on pre-tax loss of $374 million compared to an income tax expense of $98 million on pre-tax income of $983 million for the three months ended March 31, 2022. Our effective income tax rate was 4.3% and 10.0% for the three months ended March 31, 2023 and 2022, respectively.

For the three months ended March 31, 2023, the effective tax rate was lower than the statutory federal rate of 21%, for corporations, primarily due to partnership loss for which there was no tax expense, as such income is allocated to the partners and from changes in the valuation allowance.

For the three months ended March 31, 2022, the effective tax rate was lower than the statutory federal tax rate of 21%, for corporations, primarily due to partnership income for which there was no tax expense, as such income is allocated to the partners.