Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022				2021				2020
(In millions, except rates)	Amount		Rate		Amount		Rate		Amount		Rate
Computed “expected” federal income tax	$	1,085	21.00	%	$	315	21.00	%	$	51	21.00	%
State income tax, net of federal income tax benefit	93		1.80	%	24		1.59	%	5		1.86	%
Deferred tax adjustment related to change in overall state tax rate	(23)		(0.45)	%	(7)		(0.46)	%	1		0.50	%
Valuation allowance	(66)		(1.28)	%	3		0.22	%	(4)		(1.58)	%
Excess executive compensation	10		0.20	%	15		1.03	%	5		2.18	%
Reserve on uncertain tax positions	6		0.12	%	1		0.05	%	6		2.47	%
Tax credits generated	(34)		(0.66)	%	(6)		(0.39)	%	(23)		(9.63)	%



Other, net	33		0.62	%	(1)		(0.14)	%	—		0.04	%
Income tax expense	$	1,104	21.35	%	$	344	22.90	%	$	41	16.84	%

The composition of net deferred tax liabilities is as follows:


	December 31,
(In millions)	2022		2021
Deferred Tax Assets
Net operating losses	$	196	$	388



Incentive compensation	24		23
Deferred compensation	30		22
Post-retirement benefits	4		8

Capital loss carryforward	16		30
Other credit carryforwards	4		10
Leases	13		11
Derivative instruments	—		35
Other	30		18
Less: valuation allowance	(110)		(177)
Total	207		368
Deferred Tax Liabilities
Properties and equipment	3,498		3,459
Equity method investments	1		1
Leases	14		9
Derivative instruments	33		—
Total	3,546		3,469
Net deferred tax liabilities	$	3,339	$	3,101

A reconciliation of unrecognized tax benefits is as follows:


	Year Ended December 31,
(In millions)	2022		2021		2020
Balance at beginning of period	$	7	$	6	$	1
Additions for tax positions of current period	1		1		—
Additions for tax positions of prior periods	5		—		5

Balance at end of period	$	13	$	7	$	6