Income Taxes

The Tax Cuts and Jobs Act (the "Act") was enacted in December 2017. The Act reduces the U.S. federal corporate tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign earnings. As of December 31, 2017, we have not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, we have made a reasonable estimate of (i) the effects on our existing deferred tax balances and (ii) the one-time transition tax. In other cases, we have not been able to make a reasonable estimate and continue to account for those items based on our existing accounting under GAAP and the provisions of the tax laws that were in effect prior to enactment. We recognized an income tax benefit of $689 in the year ended December 31, 2017 associated with the items we could reasonably estimate. This benefit reflects (i) the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent, partially offset by (ii) a one-time transition tax on our unremitted foreign earnings and profits, which we will elect to pay over an eight-year period.

We are still analyzing the Act and refining our calculations, which could potentially impact the measurement of our tax balances. The substantial 2017 impact of the enactment of the Act is reflected in the tables below.

The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2017 are as follows:



	Year ended December 31,
	2017			2016			2015
Current
Federal	$	190		$	186		$	13
Foreign	15			10			15
State and local	30			24			14
	235			220			42
Deferred
Federal	(580		)	119			300
Foreign	(2		)	(1		)	5
State and local	49			5			31
	(533		)	123			336
Total	$	(298	)	$	343		$	378

A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 35 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2017 is as follows:



	Year ended December 31,
	2017			2016			2015
Computed tax at statutory tax rate	$	367		$	318		$	337
State income taxes, net of federal tax benefit	34			21			41
Non-deductible expenses and other	(3		)	9			8
Enactment of the Tax Cuts and Jobs Act	(689		)	—			—
Foreign taxes	(7		)	(5		)	(8		)
Total	$	(298	)	$	343		$	378

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



	December 31, 2017			December 31, 2016
Reserves and allowances	$	87		$	103
Debt cancellation and other	13			33
Net operating loss and credit carryforwards	192			28
Total deferred tax assets	292			164
Property and equipment	(1,498		)	(1,820		)
Intangibles	(174		)	(231		)
Valuation allowance	(39		)	(9		)
Total deferred tax liability	(1,711		)	(2,060		)
Total deferred income tax liability	$	(1,419	)	$	(1,896	)

We file income tax returns in the United States and in Canada. Without exception, we have completed our domestic and international income tax examinations, or the statute of limitations has expired in the respective jurisdictions, for years prior to 2010.

For financial reporting purposes, income before provision for income taxes for our foreign subsidiaries was $48, $29 and $70 for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, unremitted earnings of foreign subsidiaries were approximately $617 and have been included in our computation of the transition tax associated with the enactment of the Act discussed above. We do not provide for U.S. taxes on our unremitted earnings of foreign subsidiaries that have not been previously taxed since we intend to invest such undistributed earnings indefinitely outside of the U.S.

We have net operating loss carryforwards (“NOLs”) of $587 for federal income tax purposes that expire from 2020 through 2037 and $773 for state income tax purposes that expire from 2017 through 2037. We have recorded valuation allowances against these deferred assets of $39 and $9 as of December 31, 2017 and 2016, respectively. The valuation allowance balance as of December 31, 2017 includes a full valuation allowance associated with a $26 foreign tax credit. In 2017, the Company utilized $289 of existing NOLs to offset federal and state tax liabilities.