Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income tax expense is summarized as follows:

Income tax expense was different than the amounts computed by applying the statutory federal income tax rate as follows:


	Year Ended December 31,
	2021				2020				2019
(In millions, except rates)	Amount		Rate		Amount		Rate		Amount		Rate
Computed “expected” federal income tax	$	315	21.00	%	$	51	21.00	%	$	189	21.00	%
State income tax, net of federal income tax benefit	24		1.59	%	5		1.86	%	15		1.64	%
Deferred tax adjustment related to change in overall state tax rate	(7)		(0.46)	%	1		0.50	%	(1)		(0.07)	%
Valuation allowance	3		0.22	%	(4)		(1.58)	%	18		1.96	%
Excess executive compensation	15		1.03	%	5		2.18	%	2		0.21	%
Reserve on uncertain tax positions	1		0.05	%	6		2.47	%	—		—	%
Tax credits generated	(6)		(0.39)	%	(23)		(9.63)	%	—		—	%



Other, net	(1)		(0.14)	%	—		0.04	%	(4)		(0.40)	%
Income tax expense	$	344	22.90	%	$	41	16.84	%	$	219	24.34	%

The composition of net deferred tax liabilities is as follows:


	December 31,
(In millions)	2021		2020
Deferred Tax Assets
Net operating losses	$	388	$	22



Incentive compensation	23		16
Deferred compensation	22		6
Post-retirement benefits	8		7

Capital loss carryforward	30		17
Other credit carryforwards	10		—
Leases	11		8
Derivative instruments	35		—
Other	18		3
Less: valuation allowance	(177)		(28)
Total	368		51
Deferred Tax Liabilities
Properties and equipment	3,459		810
Equity method investments	1		1
Leases	9		8
Derivative instruments	—		6
Total	3,469		825
Net deferred tax liabilities	$	3,101	$	774

A reconciliation of unrecognized tax benefits is as follows:


	Year Ended December 31,
(In millions)	2021		2020		2019
Balance at beginning of period	$	6	$	1	$	17
Additions for tax positions of current period	1		—		—
Additions for tax positions of prior periods	—		5		—
Reductions for tax positions of prior periods	—		—		(16)
Balance at end of period	$	7	$	6	$	1