Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Our income tax benefit (provision) consisted of the following:



	Year Ended December 31,
(in millions)	2013			2012			2011
Current tax benefit (provision):
Federal	$	24		$	—		$	91
State and local	(3		)	15			(6		)
International	1			(14		)	(2		)
Deferred tax provision:
Federal	7,197			(4		)	2
State and local	794			(13		)	—
Income tax benefit (provision)	$	8,013		$	(16	)	$	85

The following table presents the principal reasons for the difference between the effective tax rate and the U.S. federal statutory income tax rate:



	Year Ended December 31,
	2013		2012		2011
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes	3.0		3.3		3.4
Other	(0.4	)	4.0		(3.7	)
	37.6		42.3		34.7
Decrease in valuation allowance	(367.5	)	(40.8	)	(45.7	)
Income tax allocation	12.7		—		—
Effective income tax rate	(317.2	)%	1.5	%	(11.0	)%

The following table shows significant components of our deferred tax assets and liabilities:



	December 31,
(in millions)	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	6,024		$	6,414
Pension, postretirement and other benefits	4,982			6,415
AMT credit carryforward	378			402
Deferred revenue	1,965			2,133
Other	698			881
Valuation allowance	(177		)	(10,963		)
Total deferred tax assets	$	13,870		$	5,282
Deferred tax liabilities:
Depreciation	$	4,799		$	4,851
Intangible assets	1,704			1,730
Other	639			285
Total deferred tax liabilities	$	7,142		$	6,866

The following table shows the current and noncurrent deferred tax assets (liabilities):



	December 31,
(in millions)	2013		2012
Current deferred tax assets, net	$	1,736	$	463
Noncurrent deferred tax assets (liabilities), net	4,992		(2,047		)
Total deferred tax assets (liabilities), net	$	6,728	$	(1,584	)

The following table shows the balance of our valuation allowance and the associated activity:



(in millions)	2013			2012			2011
Valuation allowance at beginning of period	$	10,963		$	10,705		$	9,632
Income tax provision	(975		)	(432		)	(351		)
Other comprehensive income tax benefit	(1,186		)	690			1,241
Release⁽¹⁾	(8,310		)	—			—
Other	(315		)	—			183
Valuation allowance at end of period⁽²⁾	$	177		$	10,963		$	10,705


⁽¹⁾	In addition to tax valuation allowance release of $8.3 billion, we recorded an income tax expense of $321 million related to an income tax allocation as discussed below, resulting in a net income tax benefit of $8.0 billion in 2013.


⁽²⁾	At December 31, 2013, 2012 and 2011, $13 million, $3.1 billion and $2.5 billion of deferred income tax expense was recorded in AOCI on our Consolidated Balance Sheets, respectively.