Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Our income tax provision consisted of the following:


	Year Ended December 31,
(in millions)	2019		2018		2017
Current tax benefit (provision):
Federal	$	94	$	187	$	(4)
State and local	(39)		(26)		5
International	(13)		(13)		(54)
Deferred tax provision:
Federal	(1,343)		(1,226)		(2,093)
State and local	(130)		(138)		(149)
Income tax provision	$	(1,431)	$	(1,216)	$	(2,295)

Schedule of effective income tax rate reconciliation

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,
	2019		2018		2017
U.S. federal statutory income tax rate	21.0	%	21.0	%	35.0	%
State taxes, net of federal benefit	2.3		2.5		1.8
Foreign tax rate differential	—		0.1		(2.2)
Tax Cuts and Jobs Act adjustment	—		(0.5)		7.2
Other	(0.2)		0.5		—
Effective income tax rate	23.1	%	23.6	%	41.8	%

Schedule of deferred taxes

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


	December 31,
(in millions)	2019		2018
Deferred tax assets:
Net operating loss carryforwards	$	560	$	674
Pension, postretirement and other benefits	2,241		2,435
Alternative minimum tax credit carryforward	94		189
Deferred revenue	1,667		1,620
Operating lease liabilities	1,446		1,579
Other	350		357
Valuation allowance	(58)		(13)
Total deferred tax assets	$	6,300	$	6,841
Deferred tax liabilities:
Depreciation	$	5,190	$	4,185
Operating lease right-of-use assets	1,298		1,388
Intangible assets	1,049		1,052
Other	99		137
Total deferred tax liabilities	$	7,636	$	6,762

Net deferred tax (liabilities) assets⁽¹⁾	$	(1,336)	$	79

⁽¹⁾At December 31, 2019, the net deferred tax liabilities of $1.3 billion included $120 million of net state deferred tax assets, which are recorded in other noncurrent assets, and $1.5 billion of net federal deferred tax liabilities, which are recorded in deferred income taxes, net. At December 31, 2018, the net deferred tax assets of $79 million included $242 million of net state deferred tax assets, which are recorded in other noncurrent assets, and $163 million of net federal deferred tax liabilities, which are recorded in deferred income taxes, net.