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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of components of provision for income tax
The components of the income tax expense are as follows:

 Years Ended December 31,
 202220212020
 (Dollars in millions)
Income tax expense:   
Federal   
Current$838 
Deferred(332)514 338 
State   
Current283 42 50 
Deferred(191)72 55 
Foreign   
Current32 23 29 
Deferred(73)12 (27)
Total income tax expense$557 668 450 
 Years Ended December 31,
 202220212020
 (Dollars in millions)
Income tax expense was allocated as follows:   
Income tax expense in the consolidated statements of operations:   
Attributable to income$557 668 450 
Stockholders' equity:   
Tax effect of the change in accumulated other comprehensive loss$297 222 17 
Schedule of reconciliation of the statutory federal income tax rate to effective income tax rate
The following is a reconciliation from the statutory federal income tax rate to our effective income tax rate:
 Years Ended December 31,
 202220212020
 (Percentage of pre-tax (loss) income)
Statutory federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal income tax benefit(8.8)%3.3 %(10.8)%
Goodwill impairment(68.9)%— %(71.0)%
Change in liability for unrecognized tax position(0.2)%0.1 %(0.6)%
Legislative changes to Global Intangible Low-Taxes Income ("GILTI")— %— %1.8 %
Nondeductible executive stock compensation(0.1)%0.2 %(1.6)%
Change in valuation allowance0.9 %— %2.6 %
Net foreign income taxes3.0 %0.6 %(0.6)%
Research and development credits1.1 %(0.5)%1.6 %
Divestitures of businesses(1)
(4.0)%— %— %
Other, net(0.2)%— %0.1 %
Effective income tax rate(56.2)%24.7 %(57.5)%
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(1)Includes GILTI incurred as a result of the sale of our Latin American business.
Schedule of components of deferred tax assets and deferred tax liabilities
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:
 As of December 31,
 
2022(1)
2021(1)
 (Dollars in millions)
Deferred tax assets  
Post-retirement and pension benefit costs$725 978 
Net operating loss carryforwards871 2,463 
Other employee benefits85 96 
Other519 554 
Gross deferred tax assets2,200 4,091 
Less valuation allowance(550)(1,566)
Net deferred tax assets1,650 2,525 
Deferred tax liabilities  
Property, plant and equipment, primarily due to depreciation differences(3,046)(3,941)
Goodwill and other intangible assets(1,634)(2,473)
Gross deferred tax liabilities(4,680)(6,414)
Net deferred tax liability$(3,030)(3,889)
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(1)Excludes $138 million of deferred tax assets and $38 million of deferred tax liabilities related to the EMEA business that were classified as held for sale as of December 31, 2022. Excludes $46 million of deferred tax assets and $129 million of deferred tax liabilities related to the Latin American business sold on August 1, 2022 that were classified as held for sale as of December 31, 2021. There were no material deferred tax amounts classified as held for sale related to the ILEC business.
Summary of the reconciliation of the change in gross unrecognized tax benefits
A reconciliation of the change in our gross unrecognized tax benefits (excluding both interest and any related federal benefit) from January 1 to December 31 for 2022 and 2021 is as follows:
20222021
 (Dollars in millions)
Unrecognized tax benefits at beginning of year$1,375 1,474 
Increase in tax positions of the current year netted against deferred tax assets— 
Increase in tax positions of prior periods netted against deferred tax assets— — 
Decrease in tax positions of the current year netted against deferred tax assets— (101)
Decrease in tax positions of prior periods netted against deferred tax assets(661)(1)
Increase in tax positions taken in the current year634 
(Decrease) increase in tax positions taken in the prior year(3)
Decrease due to payments/settlements— (3)
Decrease from the lapse of statute of limitations— (1)
Decrease related to divestitures of businesses$(27)— 
Unrecognized tax benefits at end of year$1,318 $1,375 
Summary of NOLs The federal NOLs will expire as follows:
ExpiringAmount
December 31,(Dollars in millions)
2028572 
2029645 
2030668 
2031733 
2032348 
2033238 
NOLs per return3,204 
Uncertain tax positions(2,190)
Financial NOLs$1,014