Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

15.  Income Taxes

For the three months ended June 30, 2023, we recorded an income tax expense of $2 million on pre-tax loss of $417 million compared to an income tax expense of $2 million on pre-tax loss of $285 million for the three months ended June 30, 2022. Our effective income tax rate was (0.5%) and (0.7%) for the three months ended June 30, 2023 and 2022, respectively.

For the three months ended June 30, 2023 and 2022, 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 benefit as such losses are allocated to the partners.

For the six months ended June 30, 2023, we recorded an income tax benefit of $14 million on a pre-tax loss of $791 million compared to an income tax expense of $100 million on pre-tax income of $698 million for the six months ended June 30, 2022. Our effective income tax rate was (1.8%) and 14.3% for the six months ended June 30, 2023 and 2022, respectively.

For the six months ended June 30, 2023, the effective tax rate was lower than the statutory federal tax rate of 21%, for corporations, primarily due to partnership loss for which there was no tax benefit as such losses are allocated to the partners. For the six months ended June 30, 2022, the effective tax rate was lower than the statutory federal rate of 21% primarily due to partnership income for which there was no tax expense, as such income is allocated to the partners.