Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provision

The income tax provision consisted of the following for the years ended December 31, 2023, 2022 and 2021:

In millions	2023		2022		2021
Current:
Federal	$	2,819	$	2,803	$	2,285
State	662		735		665
	3,481		3,538		2,950
Deferred:
Federal	(537)		(1,526)		(282)
State	(139)		(503)		(120)
	(676)		(2,029)		(402)
Total	$	2,805	$	1,509	$	2,548

Schedule of Effective Income Tax Rate Reconciliation

The following table is a reconciliation of the statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2023, 2022 and 2021:

	2023		2022		2021
Statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	3.7		3.2		4.1
Legal charges	—		3.4		—
Basis difference upon disposition of subsidiary	—		1.6		—
Prior year refunds and unrecognized tax benefits	—		(2.6)		(1.2)
Other	0.4		(0.7)		0.3
Effective income tax rate	25.1	%	25.9	%	24.2	%

Schedule of Deferred Tax Assets and Liabilities

The following table is a summary of the components of the Company’s deferred income tax assets and liabilities as of December 31, 2023 and 2022:

In millions	2023		2022
Deferred income tax assets:
Lease and rents	$	5,059	$	5,242
Legal charges	1,205		1,260
Inventory	94		103
Employee benefits	168		153
Bad debts and other allowances	606		480
Net operating loss and capital loss carryforwards	409		266
Deferred income	62		66
Insurance reserves	356		319
Investments	56		293
Other	372		335
Valuation allowance	(385)		(532)
Total deferred income tax assets (1)	8,002		7,985
Deferred income tax liabilities:
Retirement benefits	112		92
Lease and rents	4,469		4,639
Depreciation and amortization	7,732		7,139
Total deferred income tax liabilities	12,313		11,870
Net deferred income tax liabilities	$	4,311	$	3,885

_____________________________________________

(1)Includes deferred income tax assets of $131 million which were accounted for as assets held for sale and were included in assets held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.

Schedule of Unrecognized Tax Benefits Rollforward

A reconciliation of the beginning and ending balance of unrecognized tax benefits in 2023, 2022 and 2021 is as follows:

In millions	2023		2022		2021
Beginning balance	$	446	$	782	$	768
Additions based on tax positions related to the current year	2		5		3
Additions based on tax positions related to prior years	46		42		52
Reductions for tax positions of prior years	(24)		(166)		(33)
Expiration of statutes of limitation	(34)		(4)		(1)
Settlements	—		(213)		(7)
Ending balance	$	436	$	446	$	782