Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The components of “Income Before Income Taxes” are as follows (in millions):



	Year Ended December 31,
	2019		2018		2017
U.S.	$	2,482	$	1,739	$	1,976
Foreign	683		767		185
Total Income Before Income Taxes	$	3,165	$	2,506	$	2,161

Schedule of Components of Income Tax Provision

Components of the income tax provision applicable for federal, foreign and state taxes are as follows (in millions):



	Year Ended December 31,
	2019			2018			2017
Current tax expense (benefit)
Federal	$	(2	)	$	(22	)	$	(137	)
State	10			(45		)	(16		)
Foreign(a)	201			249			18
Total	209			182			(135		)
Deferred tax expense (benefit)
Federal	682			425			2,022
State	66			55			4
Foreign(a)	(31		)	(75		)	47
Total	717			405			2,073
Total tax provision	$	926		$	587		$	1,938

________


(a)	Our Canada income tax expense was $165 million, $168 million and $58 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Schedule of Effective Income Tax Rate Reconciliation

The difference between the statutory federal income tax rate and our effective income tax rate is summarized as follows (in millions, except percentages):



	Year Ended December 31,
	2019					2018					2017
Federal income tax	$	665		21.0	%	$	526		21.0	%	$	756		35.0	%
Increase (decrease) as a result of:
Taxes on foreign earnings, net of federal benefit	139			4.4	%	131			5.2	%	42			1.9	%
Net effects of noncontrolling interests	(10		)	(0.3	)%	(65		)	(2.6	)%	(14		)	(0.7	)%
State income tax, net of federal benefit	68			2.1	%	46			1.8	%	38			1.8	%
Dividend received deduction	(39		)	(1.1	)%	(31		)	(1.2	)%	(56		)	(2.6	)%
Adjustments to uncertain tax positions	(5		)	(0.2	)%	(47		)	(1.9	)%	(12		)	(0.6	)%
Impact of the 2017 Tax Reform	—			—	%	—			—	%	1,240			57.4	%
Nondeductible goodwill	108			3.4	%	58			2.3	%	—			—	%
General business credit	—			—	%	(64		)	(2.6	)%	(95		)	(4.4	)%
Other	—			—	%	33			1.4	%	39			1.9	%
Total	$	926		29.3	%	$	587		23.4	%	$	1,938		89.7	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities result from the following (in millions):



	December 31,
	2019			2018
Deferred tax assets
Employee benefits	$	208		$	238
Accrued expenses	86			76
Net operating loss, capital loss and tax credit carryforwards	1,519			1,526
Derivative instruments and interest rate and currency swaps	15			9
Debt fair value adjustment	29			33
Investments	—			177
Valuation allowances	(155		)	(178		)
Total deferred tax assets	1,702			1,881
Deferred tax liabilities
Property, plant and equipment	385			270
Investments	418			—
Other	42			45
Total deferred tax liabilities	845			315
Net deferred tax assets	$	857		$	1,566