Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Schedule Of Components Of Income Tax Expense

Components of income tax expense were as follows for the years ended December 31:

Millions	2020		2019		2018
Current tax expense:
Federal	$	1,026	$	1,000	$	1,144
State		259		254		287
Foreign		6		8		5
Total current tax expense		1,291		1,262		1,436
Deferred and other tax expense:
Federal		295		417		344
State		45		128		5
Foreign		-		21		(10)
Total deferred and other tax expense		340		566		339
Total income tax expense	$	1,631	$	1,828	$	1,775

Reconciliations Between Statutory And Effective Tax Rates

For the years ended December 31, reconciliations between statutory and effective tax rates are as follows:

Tax Rate Percentages	2020		2019		2018
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State statutory rates, net of federal benefits	3.7		3.7		3.9
Excess tax benefits from equity compensation plans	(0.8)		(0.7)		(0.4)
Dividends received deduction	(0.5)		(0.6)		(0.6)
Deferred tax adjustments	(0.1)		(0.1)		(0.6)
Other	0.1		0.3		(0.4)
Effective tax rate	23.4	%	23.6	%	22.9	%

Schedule Of Deferred Income Tax Liabilities And Assets

Deferred income tax (liabilities)/assets were comprised of the following at December 31:

Millions	2020		2019
Deferred income tax liabilities:
Property	$	(12,474)	$	(12,184)
Operating lease assets		(397)		(447)
Other		(444)		(341)
Total deferred income tax liabilities		(13,315)		(12,972)
Deferred income tax assets:
Accrued wages		40		45
Accrued casualty costs		143		146
Stock compensation		26		37
Retiree benefits		255		171
Operating lease liabilities		396		453
Other		208		128
Total deferred income tax assets		1,068		980
Net deferred income tax liability	$	(12,247)	$	(11,992)

Reconciliation Of Changes In Unrecognized Tax Benefits Liabilities/(Assets)

A reconciliation of changes in unrecognized tax benefits liabilities/(assets) from the beginning to the end of the reporting period is as follows:

Millions	2020		2019		2018
Unrecognized tax benefits at January 1	$	64	$	174	$	179
Increases for positions taken in current year		18		20		30
Increases for positions taken in prior years		7		44		9
Decreases for positions taken in prior years		(19)		(96)		(30)
Refunds from/(payments to) and settlements with taxing authorities		-		(11)		21
Increases/(decreases) for interest and penalties		5		(5)		4
Lapse of statutes of limitations		(1)		(62)		(39)
Unrecognized tax benefits at December 31	$	74	$	64	$	174

Unrecognized Tax Benefits That Would/Not Reduce The Effective Tax Rate

The unrecognized tax benefits that would reduce our effective tax rate are as follows:

Millions	2020		2019		2018
Unrecognized tax benefits that would reduce the effective tax rate	$	52	$	39	$	63
Unrecognized tax benefits that would not reduce the effective tax rate		22		25		111
Total unrecognized tax benefits	$	74	$	64	$	174