Income Taxes

The components of the provision for income taxes for each of the three years in the period ended December 31, 2016 are as follows:



	Year ended December 31,
	2016			2015		2014
Current
Federal	$	186		$	13	$	2
Foreign	10			15		42
State and local	24			14		5
	220			42		49
Deferred
Federal	119			300		240
Foreign	(1		)	5		2
State and local	5			31		19
	123			336		261
Total	$	343		$	378	$	310

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, 2016 is as follows:



	Year ended December 31,
	2016			2015			2014
Computed tax at statutory tax rate	$	318		$	337		$	297
State income taxes, net of federal tax benefit	21			41			22
Non-deductible expenses and other	9			8			8
Foreign taxes	(5		)	(8		)	(17		)
Total	$	343		$	378		$	310

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



	December 31, 2016			December 31, 2015
Reserves and allowances	$	103		$	112
Debt cancellation and other	33			48
Net operating loss and credit carryforwards	28			73
Total deferred tax assets	164			233
Property and equipment	(1,820		)	(1,714		)
Intangibles	(231		)	(272		)
Valuation allowance	(9		)	(12		)
Total deferred tax liability	(2,060		)	(1,998		)
Total deferred income tax liability	$	(1,896	)	$	(1,765	)

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



	2016		2015
Balance at January 1	$	3	$	7
Additions for tax positions of prior years	1		1
Reductions for tax positions of prior years	—		(1		)
Settlements	—		(4		)
Balance at December 31	$	4	$	3

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, 2016, 2015 and 2014.

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, 2016 are certain tax positions associated with Canadian transfer pricing and U.S. state inter-company royalty related issues. The Company has submitted a request to the Canadian Competent Authority for an Advanced Pricing Arrangement ("APA") associated with our intercompany transactions. The process has been delayed due to changes in the management and staff in the Canadian Revenue Agency ("CRA"). The latest communication received from the CRA indicated that the CRA's position on this matter should be expected within the next 12 months. 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 $29, $70 and $168 for the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016, unremitted earnings of foreign subsidiaries were approximately $382. 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 $527 for state income tax purposes that expire from 2016 through 2036. We have recorded valuation allowances against this deferred asset of $9 and $12 as of December 31, 2016 and 2015, respectively. We have no NOLs recorded for federal income tax purposes. In 2016, the Company utilized $155 of existing NOLs to offset tax liabilities.