Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of components of income tax benefit (provision)

Our income tax provision consisted of the following:


Components of income tax benefit (provision)
	Year Ended December 31,
(in millions)	2020		2019		2018
Current tax benefit (provision):
Federal	$	94	$	94	$	187
State and local	3		(39)		(26)
International	(5)		(13)		(13)
Deferred tax benefit (provision):
Federal	2,766		(1,343)		(1,226)
State and local	344		(130)		(138)
Income tax benefit (provision)	$	3,202	$	(1,431)	$	(1,216)

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:


Reconciliation of statutory federal income tax rate to the effective income tax rate
	Year Ended December 31,
	2020		2019		2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	1.9		2.3		2.5
Valuation allowance	(2.6)		0.7		—
Other	0.2		(0.9)		0.1
Effective income tax rate	20.5	%	23.1	%	23.6	%

Schedule of significant components of deferred income tax assets and liabilities

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


Significant components of deferred income tax assets and liabilities
	December 31,
(in millions)	2020		2019
Deferred tax assets:
Net operating loss carryforwards	$	1,495	$	560
Capital loss carryforward	483		—
Pension, postretirement and other benefits	2,956		2,241
Deferred revenue	1,797		1,667
Lease liabilities	2,185		1,510
Other	611		380
Valuation allowance	(460)		(58)
Total deferred tax assets	$	9,067	$	6,300
Deferred tax liabilities:
Depreciation	$	4,507	$	5,190
Operating lease assets	1,324		1,298
Intangible assets	1,076		1,049
Other	172		99
Total deferred tax liabilities	$	7,079	$	7,636

Net deferred tax assets (liabilities)(1)	$	1,988	$	(1,336)

(1)At December 31, 2020, the net deferred tax assets of $2.0 billion are recorded in deferred income taxes, net within noncurrent assets. 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 deferred income taxes, net within noncurrent assets, and $1.5 billion of net federal deferred tax liabilities, which are recorded in deferred income taxes, net within noncurrent liabilities.