Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Tax Expenses

Income taxes are summarized as follows:

	Year ended December 31,
	2021		2020			2019
	(in millions)
Current:
Federal	$	244	$	191		$	167
State		37		27			4
Foreign		20		12			8
		301		230			179
Deferred:
Federal		65		(18	)		11
State		24		1			2
Foreign		3		10			3
		92		(7	)		16
	$	393	$	223		$	195

Schedule of Effective Income Tax Rate Reconciliation

The Company’s actual income taxes differ from the amounts computed by applying the federal income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019.  A reconciliation of these differences is as follows:

	Year ended December 31,
	2021					2020					2019
	(dollars in millions)
Taxes calculated at federal rate	$	345		21.0	%	$	194		21.0	%		$	190		21.0	%
State taxes, net of federal benefit		48		2.9			22		2.4				18		2.0
Change in liability for tax positions		—		—			—		—				(14	)	(1.5	)
Foreign income taxed at different rates		1		0.1			5		0.6				1		0.1
Unremitted foreign earnings		1		0.1			(2	)	(0.2	)			3		0.3
Other items, net		(2	)	(0.2	)		4		0.3				(3	)	(0.3	)
	$	393		23.9	%	$	223		24.1	%		$	195		21.6	%

Net Deferred Tax (Liability) Assets

The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows:

	December 31,
	2021			2020
	(in millions)
Deferred tax assets:
Deferred revenue	$	11		$	9
Employee benefits		102			95
Bad debt reserves		7			7
Pension		30			34
Net operating loss carryforward		10			11
Foreign tax credit		4			7
Operating lease liabilities		58			66
Payroll taxes		5			12
Other		6			5
		233			246
Valuation allowance		(8	)		(9	)
		225			237
Deferred tax liabilities:
Depreciable and amortizable assets		274			271
Claims and related salvage		89			90
Investments in affiliates		63			7
Securities		65			75
Operating lease assets		52			59
Unremitted foreign earnings		13			12
		556			514
Net deferred tax liability	$	331		$	277

Changes in Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 is as follows:

	Year ended December 31,
	2021		2020		2019
	(in millions)
Unrecognized tax benefits—beginning balance	$	7	$	1	$	13
Gross increases (decreases)—prior period tax positions		—		5		(9	)
Gross increases—current period tax positions		1		1		1
Settlements with taxing authorities		—		—		(4	)
Unrecognized tax benefits—ending balance	$	8	$	7	$	1