Tax impact due to the sale of HOS

  
Note 14: General TaxesPresented in the table below is the components of general tax expense for the years ended December 31:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|    | 2021 |  | 2020 |  | 2019 |
| Property and capital stock | $ | 149  |  |  | $ | 140  |  |  | $ | 124  |  |
| Gross receipts and franchise | 121  |  |  | 116  |  |  | 110  |  |
| Payroll | 39  |  |  | 36  |  |  | 35  |  |
| Other general | 12  |  |  | 11  |  |  | 11  |  |
| Total general taxes | $ | 321  |  |  | $ | 303  |  |  | $ | 280  |  |

Note 15: Income TaxesPresented in the table below is the components of income tax expense for the years ended December 31:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |  | 2019 |
| Current income taxes: |   |  |   |  |   |
| State | $ | 72  |  |  | $ | 8  |  |  | $ | 4  |  |
| Federal | 75  |  |  | —  |  |  | —  |  |
| Total current income taxes | $ | 147  |  |  | $ | 8  |  |  | $ | 4  |  |
| Deferred income taxes: |   |  |   |  |   |
| State | $ | 10  |  |  | $ | 49  |  |  | $ | 54  |  |
| Federal | 221  |  |  | 159  |  |  | 155  |  |
| Amortization of deferred investment tax credits | (1) |  |  | (1) |  |  | (1) |  |
| Total deferred income taxes | 230  |  |  | 207  |  |  | 208  |  |
| Provision for income taxes | $ | 377  |  |  | $ | 215  |  |  | $ | 212  |  |

Presented in the table below is a reconciliation between the statutory federal income tax rate and the Company’s effective tax rate for the years ended December 31:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |  | 2019 |
| Income tax at statutory rate | 21.0  | % |  | 21.0  | % |  | 21.0  | % |
| Increases (decreases) resulting from: |   |  |   |  |   |
| State taxes, net of federal taxes | 3.9  | % |  | 4.8  | % |  | 5.4  | % |
| EADIT | (3.6) | % |  | (2.1) | % |  | (0.9) | % |
| Tax impact due to the sale of HOS | 1.6  | % |  | —  | % |  | —  | % |
| Other, net | 0.1  | % |  | (0.4) | % |  | (0.1) | % |
| Effective tax rate | 23.0  | % |  | 23.3  | % |  | 25.4  | % |

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