INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from the previous rate of 35 percent to 21 percent, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and created new taxes on certain foreign sourced earnings. At December 31, 2017, the Company calculated the accounting for the tax effects of enactment of the Act as written, and recorded the effects on the existing deferred tax balances. The components of deferred tax assets and liabilities at December 31, 2018 and 2017, are as follows:



	2018		2017
(in millions)			As Recast
DEFERRED TAX LIABILITIES:
Accelerated depreciation	$	3,395	$	3,123
Other	92		83
Total deferred tax liabilities	3,487		3,206
DEFERRED TAX ASSETS:
Construction obligation	355		318
Accrued employee benefits	329		301
Rapid rewards loyalty liability	267		338
Other	109		130
Total deferred tax assets	1,060		1,087
Net deferred tax liability	$	2,427	$	2,119

The provision (benefit) for income taxes is composed of the following:



	2018		2017			2016
(in millions)			As Recast			As Recast
CURRENT:
Federal	$	338	$	904		$	778
State	60		72			69
Total current	398		976			847
DEFERRED:
Federal	299		200			393
State	2		2			27
Change in federal statutory tax rate	—		(1,270		)	—
Total deferred	301		(1,068		)	420
	$	699	$	(92	)	$	1,267

The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the following reasons:



	2018			2017			2016
(in millions)				As Recast			As Recast
Tax at statutory U.S. tax rates	$	664		$	1,143		$	1,208
State income taxes, net of federal benefit	49			50			62
Change in federal statutory tax rate	—			(1,270		)	—
Other, net	(14		)	(15		)	(3		)
Total income tax provision (benefit)	$	699		$	(92	)	$	1,267

The only period subject to examination for the Company’s federal tax return is the 2018 tax year. The Company is also subject to various examinations from state and local income tax jurisdictions in the ordinary course of business. These examinations are not expected to have a material effect on the financial results of the Company.