Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

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 2018 and 2017 are as follows:



	2018		2017
	(Dollars in millions)
Unrecognized tax benefits at December 31, 2017	$	—	—
Increase due to tax positions taken in a prior year	433		—
Unrecognized tax benefits at December 31, 2018	$	433	—

Schedule of components of the income tax expense from continuing operations

The components of the income tax expense (benefit) from continuing operations are as follows:



	Years Ended December 31,
	2018			2017		2016
	(Dollars in millions)
Income tax expense (benefit):
Current:
Federal and foreign	$	(39	)	777		686
State and local	31			130		115
Total current	(8		)	907		801
Deferred:
Federal and foreign	408			(736	)	(103	)
State and local	94			(37	)	(20	)
Total deferred	502			(773	)	(123	)
Income tax expense (benefit)	$	494		134		678

Schedule of effective income tax rate for continuing operations that differs from the statutory tax rate

The effective income tax rate for continuing operations differs from the statutory tax rate as follows:



	Years Ended December 31,
	2018		2017		2016
	(in percent)
Effective income tax rate:
Federal statutory income tax rate	21.0	%	35.0	%	35.0	%
State income taxes-net of federal effect	6.1	%	3.4	%	3.5	%
Tax reform	—	%	(31.0	)%	—	%
Accounting method changes	(3.9	)%	—	%	—	%
Other	(0.3	)%	0.1	%	—	%
Effective income tax rate	22.9	%	7.5	%	38.5	%

Schedule of components of the deferred tax assets and 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,
	2018			2017
	(Dollars in millions)
Deferred tax assets and liabilities:
Deferred tax liabilities:
Property, plant and equipment	$	(1,026	)	(933	)
Intangibles assets	(419		)	(553	)
Total deferred tax liabilities	(1,445		)	(1,486	)
Deferred tax assets:
Payable to affiliate due to post-retirement benefit plan participation	297			366
Other	58			127
Gross deferred tax assets	355			493
Less valuation allowance on deferred tax assets	(8		)	(8	)
Net deferred tax assets	347			485
Net deferred tax liabilities	$	(1,098	)	(1,001	)