Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of components of income tax expense (benefit)

The income tax provision (benefit) for continuing operations consisted of the following for the years ended December 31, 2019, 2018 and 2017:



In millions	2019			2018		2017
Current:
Federal	$	2,450		$	1,480	$	2,594
State	565			499		464
	3,015			1,979		3,058
Deferred:
Federal	(535		)	22		(1,435		)
State	(114		)	1		14
	(649		)	23		(1,421		)
Total	$	2,366		$	2,002	$	1,637

Schedule of effective income tax rate reconciliation

The following table is a reconciliation of the statutory income tax rate to the Company’s effective income tax rate for continuing operations for the years ended December 31, 2019, 2018 and 2017:



	2019		2018		2017
Statutory income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	4.0		27.7		4.1
Effect of the Tax Cuts and Jobs Act	—		(7.1	)	(18.3	)
Health insurer fee	—		2.2		—
Goodwill impairments	—		89.5		0.8
Sale of subsidiary	—		5.0		—
Other	1.3		4.1		(1.8	)
Effective income tax rate	26.3	%	142.4	%	19.8	%

Schedule of deferred tax assets and liabilities

The following table is a summary of the components of the Company’s deferred income tax assets and liabilities as of December 31, 2019 and 2018:



In millions	2019			2018
Deferred income tax assets:
Lease and rents	$	267		$	277
Inventory	23			28
Employee benefits	191			243
Bad debts and other allowances	294			243
Retirement benefits	47			130
Net operating loss and capital loss carryforwards	480			529
Deferred income	36			104
Insurance reserves	430			467
Investments	—			11
Other	451			242
Valuation allowance	(374		)	(520		)
Total deferred income tax assets	1,845			1,754
Deferred income tax liabilities:
Investments	(289		)	—
Depreciation and amortization	(8,850		)	(9,431		)
Total deferred income tax liabilities	(9,139		)	(9,431		)
Net deferred income tax liabilities	$	(7,294	)	$	(7,677	)

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31, 2019, 2018 and 2017 is as follows:



In millions	2019			2018			2017
Beginning balance	$	661		$	344		$	307
Additions based on tax positions related to the current year	4			1			62
Additions based on tax positions related to prior years	115			324			32
Reductions for tax positions of prior years	(111		)	(5		)	(28		)
Expiration of statutes of limitation	(7		)	(2		)	(10		)
Settlements	(7		)	(1		)	(19		)
Ending balance	$	655		$	661		$	344