Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of the components of the provision (benefit) for income taxes

The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2020 are as follows:

	Year ended December 31,
	2020		2019		2018
Current
Federal	$	290	$	97	$	47
Foreign	15		(6)		18
State and local	65		45		58
	370		136		123
Deferred
Federal	(107)		185		243
Foreign	6		14		3
State and local	(20)		5		11
	(121)		204		257
Total	$	249	$	340	$	380

Schedule of effective income tax rate reconciliation

A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 21 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2020 is as follows:

	Year ended December 31,
	2020		2019		2018
Computed tax at statutory tax rate	$	239	$	318	$	310
State income taxes, net of federal tax benefit	31		43		54
Other permanent items	(3)		(17)		(1)
Change in valuation allowance	(22)		(3)		7
Enactment of the Tax Act (1)	—		—		6
Foreign tax rate differential	4		(1)		4
Total	$	249	$	340	$	380

_________________

(1)    The Tax Act was enacted in December 2017 and required (i) the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent and (ii) a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments. We primarily recognized the accounting for the enactment of the Tax Act upon adoption in 2017, and finalized the accounting in 2018.

Schedule of deferred tax assets and liabilities

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

	December 31, 2020		December 31, 2019
Reserves and allowances	$	129	$	111
Debt cancellation and other	10		8
Net operating loss and credit carryforwards	242		371
Operating lease assets	183		182
Total deferred tax assets	564		672
Less: valuation allowance (1)	(21)		(43)
Total net deferred tax assets	543		629
Property and equipment, including rental equipment	(1,962)		(2,135)
Operating lease liabilities	(183)		(182)
Intangibles	(166)		(199)
Total deferred tax liability	(2,311)		(2,516)
Total net deferred tax liability	$	(1,768)	$	(1,887)

_________________

(1)    Relates to foreign tax credits, state net operating loss carryforwards, and state tax credits that may not be realized. All of the remaining valuation allowance for foreign tax credits was released in 2020.