
	2020	2019	2018
U.S. statutory tax rate	21.0%	21.0%	21.0%
Increase (decrease) in taxes resulting from:
State taxes (net of federal income tax benefit)	3.3	3.1	2.9
Uncertain tax positions, settlements and lapse of statutes of limitations	(0.1)	(1.6)	(0.3)
Other valuation allowances, tax rate changes, & deferred adjustments	(0.1)	(1.7)	(1.0)
Valuation allowance on equity method investment	0.4	1.7	—
Enactment of the Tax Cuts and Jobs Act	—	—	(1.1)
Non-deductible transactions costs	—	0.3	—
Net excess benefits or expense on share-based payments	(0.1)	0.4	0.1
Other, net	(0.2)	0.6	(0.5)
Effective tax rate	24.2%	23.8%	21.1%

Deferred income taxes reflect temporary differences in the recognition of revenue and expense for tax reporting and financial statement purposes. Deferred tax liabilities and assets are adjusted for changes in tax laws or tax rates of the various tax jurisdictions as of the enacted date.


	Dec. 31,
	2020		2019
Deferred tax liabilities
Accelerated depreciation	$	67,479	$	62,951
Accelerated amortization of deductible intangibles	536,740		524,697
Right-of-use assets for operating leases	24,220		25,615
Other	3,322		3,677
Total deferred tax liabilities	631,761		616,940
Deferred tax assets
Accrued compensation costs	18,559		16,180
Pension and post-retirement medical and life	25,523		35,192
Loss carryforwards	38,348		38,686
Operating lease liabilities	25,319		26,008
Other	37,239		30,914
Total deferred tax assets	144,988		146,980
Deferred tax asset valuation allowance	43,467		45,661
Total net deferred tax (liabilities)	$	(530,240)	$	(515,621)

As of December 31, 2020, we had approximately $107.9 million of capital loss carryforwards for federal and state purposes including $26.1 million of which will expire if not used prior to 2022, $73.0 million of which will expire if not used prior to 2023, and the remainder of which will expire if not used prior to 2026. Capital loss carryforwards can only be utilized to the extent capital gains are recognized. As of December 31, 2020, we had established a valuation allowance on all federal and state capital loss carryforwards. As of December 31, 2020, we also had approximately $10.8 million of state net operating loss carryovers that, if not utilized, will expire in various amounts beginning in 2022 through 2039 and $5.4 million of state interest disallowance carryovers that do not expire.

Included in total deferred tax assets were valuation allowances of approximately $43.5 million as of December 31, 2020 and $45.7 million as of December 31, 2019, primarily related to federal and state capital losses, minority investments, state interest disallowance carryovers, and state net operating losses available for carry forward to future years. If, in the future, we believe that it is more likely than not that these deferred tax assets will be realized, the valuation allowances will be reversed in the Consolidated Statements of Income.

Realization of deferred tax assets for which valuation allowances have not been established is dependent upon generating sufficient future taxable income. We expect to realize the benefit of these deferred tax assets through future reversals of our deferred tax liabilities, through the recognition of taxable income in the allowable carryback and carryforward periods, and through implementation of future tax planning strategies. Although realization is not assured, we believe it is more likely than not that all deferred tax assets for which valuation allowances have not been established will be realized.


	2020		2019		2018
Beginning at beginning of period	$	45,661	$	125,894	$	136,418
Additions to valuation allowance	3,719		9,545		3,908
Reductions to valuation allowance	(5,913)		(89,778)		(14,432)
Balance at the end of the period	$	43,467	$	45,661	$	125,894

Prior to the May 31, 2017 spin-off of the Cars.com business, we entered into a Tax Matters Agreement with Cars.com Inc. that governs each company’s respective rights, responsibilities, and obligations with respect to tax liabilities and benefits, tax attributes, tax contests and other matters regarding income taxes, non-income taxes and related tax returns. The agreement provides that we will generally indemnify Cars.com against taxes attributable to assets or operations for all tax periods or portions thereof prior to the spin-off date including separately-filed U.S. federal, state, and foreign taxes. On October 15, 2021, TEGNA’s 2017 tax year (including the tax-free treatment of the spin-off of the Cars.com business) will no longer be subject to examination by the Internal Revenue Service.



	2020		2019		2018
Change in unrecognized tax benefits
Balance as of beginning of year	$	8,050	$	12,843	$	15,043
Additions based on tax positions related to the current year	—		—		40
Additions for tax positions of prior years	630		—		2,631
Reductions for tax positions of prior years	—		(959)		—
Settlements	—		(288)		(182)
Reductions due to lapse of statutes of limitations	(1,245)		(3,546)		(4,689)
Balance as of end of year	$	7,435	$	8,050	$	12,843

The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $6.0 million as of December 31, 2020, and $6.4 million as of December 31, 2019. This amount includes the federal tax benefit of state tax deductions.

We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. We also recognize interest income attributable to overpayment of income taxes and from the reversal of interest expense previously recorded for uncertain tax positions which are subsequently released as a component of income tax expense. We did not recognize income or expense from the reversal of previously recorded interest expense for uncertain tax positions in 2020, but recognized income of $1.7 million in 2019, and $0.2 million in 2018. The amount of accrued interest expense and penalties payable related to unrecognized tax benefits was $0.1 million as of December 31, 2020 and December 31, 2019.

We file income tax returns in the U.S. and various state jurisdictions. The 2016 through 2020 tax years remain subject to examination by the Internal Revenue Service and state authorities. Tax years before 2016 remain subject to examination by certain states due to ongoing audits.

It is reasonably possible that the amount of unrecognized benefit with respect to certain of our unrecognized tax positions will increase or decrease within the next 12 months. These changes may be the result of settlement of ongoing audits, lapses of statutes of limitations or other regulatory developments. At this time, we estimate the amount of our gross unrecognized tax positions may decrease by up to approximately $0.6 million within the next 12 months primarily due to lapses of statutes of limitations and settlement of ongoing audits in various jurisdictions.