Income Taxes

The components of the provision for income taxes for each of the three years in the period ended December 31, 2015 are as follows:



	Year ended December 31,
	2015		2014		2013
Current
Federal	$	13	$	2	$	10
Foreign	15		42		39
State and local	14		5		2
	42		49		51
Deferred
Federal	300		240		149
Foreign	5		2		4
State and local	31		19		14
	336		261		167
Total	$	378	$	310	$	218

A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate of 35 percent to the income before provision for income taxes for each of the three years in the period ended December 31, 2015 is as follows:



	Year ended December 31,
	2015			2014			2013
Computed tax at statutory tax rate	$	337		$	297		$	212
State income taxes, net of federal tax benefit	41			22			15
Non-deductible expenses and other	8			8			8
Foreign taxes	(8		)	(17		)	(17		)
Total	$	378		$	310		$	218

The components of deferred income tax assets (liabilities) are as follows:



	December 31, 2015			December 31, 2014
Reserves and allowances	$	112		$	107
Intangibles	—			1
Debt cancellation and other	48			58
Net operating loss and credit carryforwards	73			237
Total deferred tax assets	233			403
Property and equipment	(1,714		)	(1,535		)
Intangibles	(272		)	(312		)
Valuation allowance	(12		)	—
Total deferred tax liability	(1,998		)	(1,847		)
Total deferred income tax liability (1)	$	(1,765	)	$	(1,444	)

(1) In 2015, we adopted guidance that requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. The total deferred income tax liability as of December 31, 2015 and 2014 is presented above in accordance with this new guidance. See note 2 to our consolidated financial statements for additional detail.

The following table summarizes the activity related to unrecognized tax benefits, some of which would impact our effective tax rate if recognized:



	2015			2014
Balance at January 1	$	7		$	7
Additions for tax positions of prior years	1			—
Reductions for tax positions of prior years	(1		)	—
Settlements	(4		)	—
Balance at December 31	$	3		$	7

We include interest accrued on the underpayment of income taxes in interest expense, and penalties, if any, related to unrecognized tax benefits in selling, general and administrative expense. Interest expense of less than $1 related to income tax was reflected in our consolidated statements of income for each of the years ended December 31, 2015, 2014 and 2013.

We file income tax returns in the United States and in Canada. With few exceptions, we have completed our domestic and international income tax examinations, or the statute of limitations has expired in the respective jurisdictions, for years prior to 2010. The Internal Revenue Service (“IRS”) has completed audits for periods prior to 2010. Canadian authorities have concluded income tax audits for periods through 2010. Included in the balance of unrecognized tax benefits at December 31, 2015 are certain tax positions associated with Canadian transfer pricing. The Company has submitted a request to Canadian Competent Authority for an Advanced Pricing Arrangement ("APA") associated with our intercompany transactions. It is reasonably possible that the APA request will be concluded within the next 12 months, and that the conclusion of the request will result in a settlement of reported unrecognized tax benefits for those tax positions during the next 12 months. However, it is not possible to estimate the amount of the change, if any, to the previously recorded uncertain tax positions.

For financial reporting purposes, income before provision for income taxes for our foreign subsidiaries was $70, $168 and $153 for the years ended December 31, 2015, 2014 and 2013, respectively. At December 31, 2015, unremitted earnings of foreign subsidiaries were approximately $651. Since it is our intention to indefinitely reinvest these earnings, no U.S. taxes have been provided for these amounts. If we changed our reinvestment policy and decided to remit earnings as a dividend, a deferred tax liability would arise. Determination of the amount of unrecognized deferred tax liability on these unremitted taxes is not practicable.

We have net operating loss carryforwards (“NOLs”) of $667 for state income tax purposes that expire from 2016 through 2035. We have recorded valuation allowances against this deferred asset of $12 and less than $1 as of December 31, 2015 and 2014, respectively. The increase in 2015 primarily reflects the enactment of Connecticut state limitations on net operating loss utilization. We have no NOLs recorded for federal income tax purposes. We have a federal alternative minimum tax (“AMT”) credit carryforward of $39. We have not recorded a valuation allowance against the AMT credit carryforward because it is deemed more likely than not that such benefits will be realized in the future. There were no new NOLs for federal income tax purposes recognized in 2015. In 2015, the Company utilized $463 of existing NOLs to offset tax liabilities.