Provision (Benefit) for Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes [Text Block]

Note 5 – Provision (Benefit) for Income Taxes

The Provision (benefit) for income taxes from continuing operations includes:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
	(Millions)
Current:
Federal	$	(1)	$	(28)	$	—	$	(27)
State	4		8		4		10
	3		(20)		4		(17)
Deferred:
Federal	149		(10)		386		84
State	23		(15)		69		6
	172		(25)		455		90
Provision (benefit) for income taxes	$	175	$	(45)	$	459	$	73

The effective income tax rates for the total provision (benefit) for the three and six months ended June 30, 2023, are greater than the federal statutory rate primarily due to the effect of state income taxes.

The effective income tax rates for the total provision (benefit) for the three and six months ended June 30, 2022, are less than the federal statutory rate primarily due to the release of valuation allowances and federal settlements, partially offset by the effect of state income taxes.

We have a valuation allowance on certain deferred income tax assets that serves to reduce those assets to amounts that will, more likely than not, be realized. We must evaluate whether we will ultimately realize these tax benefits considering all available positive and negative evidence, which incorporates management’s assessment of available tax planning strategies, future reversals of existing taxable temporary differences, and the availability and

character of future taxable income. In the second quarter of 2022, we released $88 million of valuation allowance upon determining we expect to utilize an additional $70 million of foreign tax credits and $18 million related to various state net operating loss carryforwards and state credits.

During the second quarter of 2022, we finalized settlements for 2011 through 2014 on certain contested matters with the Internal Revenue Service (IRS). This settlement resulted in decreasing our uncertain tax positions of approximately $46 million, which favorably impacted the Provision (benefit) for income taxes.