Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 2020 and 2019:


In millions	2021		2020		2019
Current:
Federal	$	2,285	$	2,615	$	2,450
State	665		518		565
	2,950		3,133		3,015
Deferred:
Federal	(306)		(450)		(535)
State	(122)		(114)		(114)
	(428)		(564)		(649)
Total	$	2,522	$	2,569	$	2,366

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, 2021, 2020 and 2019:


	2021		2020		2019
Statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	4.1		3.2		4.0
Health insurer fee	—		2.2		—
Basis difference upon disposition of subsidiary	—		(1.2)		—
Prior year refund claim	(1.2)		—		—
Other	0.3		1.1		1.3
Effective income tax rate	24.2	%	26.3	%	26.3	%

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, 2021 and 2020:


In millions	2021		2020
Deferred income tax assets:
Lease and rents	$	5,563	$	5,742
Inventory	99		80
Employee benefits	193		238
Bad debts and other allowances	489		395

Net operating loss and capital loss carryforwards	416		568
Deferred income	78		43
Insurance reserves	501		489
Payroll tax deferral	87		173
Other	396		500
Valuation allowance	(325)		(454)
Total deferred income tax assets	7,497		7,774
Deferred income tax liabilities:
Retirement benefits	(105)		(29)
Investments	(334)		(421)
Lease and rents	(4,947)		(5,368)
Depreciation and amortization	(8,381)		(8,750)
Total deferred income tax liabilities	(13,767)		(14,568)
Net deferred income tax liabilities	$	(6,270)	$	(6,794)

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending balance of unrecognized tax benefits in 2021, 2020 and 2019 is as follows:


In millions	2021		2020		2019
Beginning balance	$	768	$	655	$	661
Additions based on tax positions related to the current year	3		3		4
Additions based on tax positions related to prior years	52		182		115
Reductions for tax positions of prior years	(33)		(56)		(111)
Expiration of statutes of limitation	(1)		(2)		(7)
Settlements	(7)		(14)		(7)
Ending balance	$	782	$	768	$	655