Income Taxes (Tables)

Income before income taxes is comprised of the following:

The provisions for income taxes are as follows:



	2018			2017			2016
Federal:
Current	$	636		$	802		$	468
Deferred	(35		)	7			233
Total federal	601			809			701
State:
Current	190			161			108
Deferred	22			8			21
Total state	212			169			129
Foreign:
Current	487			389			398
Deferred	(37		)	(42		)	15
Total foreign	450			347			413
Total provision for income taxes	$	1,263		$	1,325		$	1,243

The reconciliation between the statutory tax rate and the effective rate is as follows:



	2018					2017					2016
Federal taxes at statutory rate	$	1,136		25.6	%	$	1,414		35.0	%	$	1,267		35.0	%
State taxes, net	154			3.4		116			2.9		91			2.5
Foreign taxes, net	32			0.7		(64		)	(1.6	)	(21		)	(0.6	)
Employee stock ownership plan (ESOP)	(14		)	(0.3	)	(104		)	(2.6	)	(17		)	(0.5	)
2017 Tax Act	19			0.4		—			—		—			—
Other	(64		)	(1.4	)	(37		)	(0.9	)	(77		)	(2.1	)
Total	$	1,263		28.4	%	$	1,325		32.8	%	$	1,243		34.3	%

The components of the deferred tax assets (liabilities) are as follows:



	2018			2017
Equity compensation	$	72		$	109
Deferred income/membership fees	136			167
Accrued liabilities and reserves	484			647
Property and equipment	(478		)	(747		)
Merchandise inventories	(175		)	(252		)
Other⁽¹⁾	(40		)	18
Net deferred tax (liabilities)/assets	$	(1	)	$	(58	)

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(1)	Includes foreign tax credits of $36 for 2017. There were no foreign tax credits in 2018.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2018 and 2017 is as follows:



	2018			2017
Gross unrecognized tax benefit at beginning of year	$	52		$	52
Gross increases—current year tax positions	6			3
Gross increases—tax positions in prior years	6			17
Gross decreases—tax positions in prior years	(17		)	0
Settlements	(1		)	(11		)
Lapse of statute of limitations	(10		)	(9		)
Gross unrecognized tax benefit at end of year	$	36		$	52