Company: PAGP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001581990-25-000006
Chunk: 172

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 172
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 and jurisdiction and result from the following (in millions):December 31,20242023Deferred tax assets:Investment in partnerships$436 $523 Net operating losses784 716 Derivative instruments19 — Lease liabilities46 40 Other43 45 Total deferred tax assets1,328 1,324 Deferred tax liabilities:Property and equipment in excess of tax values(525)(573)Derivative instruments— (6)Lease assets(44)(38)Other(3)(3)Total deferred tax liabilities(572)(620)Net deferred tax assets$756 $704 Balance sheet classification of deferred tax assets/(liabilities):Deferred tax asset$1,220 $1,239 Other long-term liabilities and deferred credits(464)(535)$756 $704 As a result of the exchange of the ownership interest in AAP in connection with our IPO and all subsequent exchanges, a deferred tax asset was created. These transfers of ownership were accounted for at the historical carrying basis for GAAP accounting purposes, but were recorded at the fair market value of the Class A shares at the time of exchange for U.S. federal income tax purposes. These transfers were transactions among shareholders, with the basis differences resulting in a deferred tax asset that was recorded as a component of partners’ capital. Also, other equity transactions, including the repurchase of common units by PAA, and the associated adjustment to partners’ capital attributable to PAGP resulted in a corresponding change to the deferred tax asset balance that was recorded as a component of partners’ capital. See Note 11 for additional information regarding exchanges and the repurchase of common units by PAA. The deferred tax asset is amortized to deferred income tax expense as the associated basis step-up is realized on our tax returns.As of December 31, 2024, our federal and state net operating loss carryforwards for income tax purposes were approximately $3,549 million and $953 million, respectively. If not utilized, the state net operating losses will begin to expire in 2025 and a portion of our federal net operating losses will begin to expire in 2033. Under the Tax Cuts and Jobs Act, U.S. federal NOLs generated after 2017 will have an indefinite carryforward period but may only reduce up to 80% of taxable income in any given year. Our U.S. federal NOLs generated prior to 2018 will not be subject to the taxable income limitation and will remain subject