Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of components of income tax expense (benefit)

The income tax provision for continuing operations consisted of the following for the years ended December 31, 2020, 2019 and 2018:


In millions	2020		2019		2018
Current:
Federal	$	2,615	$	2,450	$	1,480
State	518		565		499
	3,133		3,015		1,979
Deferred:
Federal	(450)		(535)		22
State	(114)		(114)		1
	(564)		(649)		23
Total	$	2,569	$	2,366	$	2,002

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, 2020, 2019 and 2018:


	2020		2019		2018
Statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	3.2		4.0		27.7
Effect of the Tax Cuts and Jobs Act	—		—		(7.1)
Health insurer fee	2.2		—		2.2
Goodwill impairments	—		—		89.5
Basis difference upon disposition of subsidiary	(1.2)		—		5.0
Other	1.1		1.3		4.1
Effective income tax rate	26.3	%	26.3	%	142.4	%

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, 2020 and 2019:


In millions	2020		2019
Deferred income tax assets:
Lease and rents	$	5,742	$	5,731
Inventory	80		23
Employee benefits	238		191
Bad debts and other allowances	395		294
Retirement benefits	—		47
Net operating loss and capital loss carryforwards	568		480
Deferred income	43		36
Insurance reserves	489		430
Payroll tax deferral	173		—
Other	500		451
Valuation allowance	(454)		(374)
Total deferred income tax assets	7,774		7,309
Deferred income tax liabilities:
Retirement benefits	(29)		—
Investments	(421)		(289)
Lease and rents	(5,368)		(5,464)
Depreciation and amortization	(8,750)		(8,850)
Total deferred income tax liabilities	(14,568)		(14,603)
Net deferred income tax liabilities	$	(6,794)	$	(7,294)

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending balance of unrecognized tax benefits in 2020, 2019 and 2018 is as follows:


In millions	2020		2019		2018
Beginning balance	$	655	$	661	$	344
Additions based on tax positions related to the current year	3		4		1
Additions based on tax positions related to prior years	182		115		324
Reductions for tax positions of prior years	(56)		(111)		(5)
Expiration of statutes of limitation	(2)		(7)		(2)
Settlements	(14)		(7)		(1)
Ending balance	$	768	$	655	$	661