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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of components of income before income taxes and components of income tax expense
The components of our Provision for income taxes included in the Consolidated Statements of Income were as follows for the years ended December 31:

202320222021
(Millions)
Current
Federal$262 $280 $218 
State37 41 49 
Total current income tax expense299 321 267 
Deferred
Federal(66)(201)(13)
State(2)(44)(7)
Total deferred income tax benefit(68)(245)(20)
Total Provision for income taxes$231 $76 $247 
Summary of reconciliation of recorded federal provision for income taxes to the expected amount computed by applying the federal statutory rate
A reconciliation of our expected income tax expense computed by applying the federal statutory rate to Income from continuing operations before income taxes, to the recorded Provision for income taxes, is as follows for the years ended December 31:

202320222021
(Millions)
Expected expense at statutory rate$203 $63 $219 
Increase (decrease) in income taxes resulting from:
State and local income taxes, net of federal benefit27 (2)33 
Impact of 2017 Tax Reform— — (8)
Non-deductible expenses
IRC Section 199, net of tax reserves— — 
Basis difference in unconsolidated subsidiaries— (8)— 
Valuation allowance(5)16 — 
Other(2)(3)(1)
Total$231 $76 $247 
Summary of deferred tax assets and liabilities
The following table reflects the significant components of Deferred tax assets and liabilities as of December 31:

20232022
(Millions)
Deferred tax assets
Deferred revenue$14 $14 
Allowance for credit losses554 598 
Net operating loss carryforwards and other carryforwards51 39 
Operating lease liabilities34 30 
Depreciation24 — 
Accrued expenses and other79 88 
Total deferred tax assets756 769 
Valuation allowance(21)(26)
Deferred tax assets, net of valuation allowance735 743 
Deferred tax liabilities
Deferred income$73 $148 
Depreciation— 
Right of use assets22 20 
Intangible assets11 16 
Total deferred tax liabilities106 191 
Net deferred tax assets$629 $552 
Amounts recognized on the Consolidated Balance Sheets:
Other assets$629 $552 
Summary of reconciliation of unrecognized tax benefits
The following table presents changes in unrecognized tax benefits:

(Millions)
Balance as of December 31, 2020$255 
Increases related to prior years’ tax positions
Decreases related to prior years’ tax positions(13)
Increases related to current year tax positions12 
Settlements during the period(8)
Balance as of December 31, 2021$247 
Increases related to prior years’ tax positions
Decreases related to prior years’ tax positions(25)
Increases related to current year tax positions14 
Settlements during the period(2)
Balance as of December 31, 2022$242 
Increases related to prior years’ tax positions
Decreases related to prior years’ tax positions(11)
Increases related to current year tax positions13 
Settlements during the period(10)
Lapses of applicable statutes of limitations(20)
Balance as of December 31, 2023$215