Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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

The following table presents the impact of the accounting for the enactment of the Tax Act on our provision (benefit) for income taxes for the years ended December 31, 2018 and 2017:



	Year ended December 31,
	2018		2017
Revaluation of deferred tax balances (1)	$	1	$	(746	)
One-time transition tax (2)	5		57
Total provision (benefit) for income taxes impact	$	6	$	(689	)

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(1)	Reflects the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent.

(2)

Reflects a one-time transition tax on our unremitted foreign earnings and profits. See below for further discussion addressing our unremitted foreign earnings and profits.

The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2019 are

as follows:



	Year ended December 31,
	2019			2018		2017
Current
Federal	$	97		$	47	$	190
Foreign	(6		)	18		15
State and local	45			58		30
	136			123		235
Deferred
Federal	185			243		(580		)
Foreign	14			3		(2		)
State and local	5			11		49
	204			257		(533		)
Total	$	340		$	380	$	(298	)

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 rates (21 percent for the years ended December 31, 2019 and 2018 and 35 percent for the year ended December 31, 2017) to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2019 is as follows:



	Year ended December 31,
	2019			2018		2017
Computed tax at statutory tax rate	$	318		$	310	$	367
State income taxes, net of federal tax benefit	43			54		34
Other permanent items	(20		)	6		(3		)
Enactment of the Tax Act	—			6		(689		)
Foreign tax rate differential	(1		)	4		(7		)
Total	$	340		$	380	$	(298	)

Schedule of deferred tax assets and liabilities

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



	December 31, 2019			December 31, 2018
Reserves and allowances	$	111		$	126
Debt cancellation and other	8			11
Net operating loss and credit carryforwards	371			435
Operating lease assets (1)	182			—
Total deferred tax assets	672			572
Less: valuation allowance (2)	(43		)	(46		)
Total net deferred tax assets	629			526
Property and equipment	(2,135		)	(1,976		)
Operating lease liabilities (1)	(182		)	—
Intangibles	(199		)	(237		)
Total deferred tax liability	(2,516		)	(2,213		)
Total net deferred tax liability	$	(1,887	)	$	(1,687	)

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(1) As discussed in note 13 to the consolidated financial statements, in 2019, we adopted an updated lease accounting standard that resulted in the recognition of operating lease right-of-use assets and lease liabilities. We adopted this standard using a transition method that does not require application to periods prior to adoption.

(2) Relates to foreign tax credits, state net operating loss carryforwards, and state tax credits that may not be realized.