INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023


Components of income tax provision
	Year Ended December 31,
(in millions)	2023		2022		2021
Current tax provision:
Federal	$	—	$	—	$	—
State and local	(8)		(1)		(1)
International	(11)		(4)		(3)
Deferred tax (provision) benefit:
Federal	(896)		(525)		(130)
State and local	(84)		(66)		16
Income tax provision	$	(999)	$	(596)	$	(118)

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,
	2023		2022		2021
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.0		3.0		(4.4)
Permanent differences	0.7		1.0		4.9
Valuation allowance	(5.0)		7.3		9.1
Other	(0.9)		(1.1)		(0.8)
Effective income tax rate	17.8	%	31.2	%	29.8	%


Significant components of deferred income tax assets and liabilities
	December 31,
(in millions)	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	1,217	$	1,395
Capital loss carryforward	8		50
Pension, postretirement and other benefits	1,488		1,467
Investments	806		1,106
Deferred revenue	2,110		2,334
Lease liabilities	2,193		2,376
Other	709		682
Valuation allowance	(877)		(1,176)
Total deferred tax assets	$	7,654	$	8,234
Deferred tax liabilities:
Depreciation	$	5,570	$	5,110
Operating lease assets	1,533		1,624
Intangible assets	1,143		1,121
Other	73		78
Total deferred tax liabilities	$	8,319	$	7,933

Balance Sheet Position:
Other noncurrent assets	$	243	$	325
Deferred income taxes, net	(908)		(24)
Net deferred tax (liabilities) assets	$	(665)	$	301

The following table presents the balance of our valuation allowance on our deferred income tax assets and the associated activity:


Valuation allowance activity
(in millions)	2023		2022
Balance at January 1	$	1,176	$	833
Tax provision	(299)		155
Equity investment activity	—		188
Balance at December 31	$	877	$	1,176