Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of components of the income tax expense from continuing operations

The components of the income tax expense from continuing operations are as follows:

	Years Ended December 31,
	2021		2020	2019
	(Dollars in millions)
Income tax expense:
Federal and foreign
Current	$	553	425	415
Deferred	17		40	95
State and local
Current	129		128	126
Deferred	10		2	5
Income tax expense	$	709	595	641

Schedule of effective income tax rate for continuing operations that differs from the statutory tax rate

The effective income tax rate for continuing operations differs from the statutory tax rate as follows:

	Years Ended December 31,
	2021		2020		2019
	(in percent)
Effective income tax rate:
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes-net of federal effect	3.7	%	4.4	%	4.1	%
Other	0.5	%	0.4	%	0.9	%
Effective income tax rate	25.2	%	25.8	%	26.0	%

Schedule of components of the deferred tax assets and liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:

	As of December 31,
	2021		2020
	(Dollars in millions)
Deferred tax liabilities:
Property, plant and equipment	$	(1,386)	(1,369)
Intangible assets	(129)		(169)
Other	(25)		—
Total deferred tax liabilities	(1,540)		(1,538)
Deferred tax assets:
Payable to affiliate due to post-retirement benefit plan participation	274		284
Other	—		15
Gross deferred tax assets	274		299
Less valuation allowance on deferred tax assets	(8)		(8)
Net deferred tax assets	266		291
Net deferred tax liabilities	$	(1,274)	(1,247)

Reconciliation of unrecognized tax benefits

A reconciliation of the change in our gross unrecognized tax benefits (excluding both interest and any related federal benefit) from January 1 to December 31 for 2021 and 2020 are as follows:

	Years ended December 31,
	2021		2020
	(Dollars in millions)
Unrecognized tax benefits at beginning of period	$	388	414
Increase due to tax positions taken in a prior year	—		—
Decrease due to tax positions taken in a prior year	(28)		(26)
Unrecognized tax benefits at end of period	$	360	388