Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023				2022				2021
(In millions, except rates)	Amount		Rate		Amount		Rate		Amount		Rate
Computed “expected” federal income tax	$	447	21.00	%	$	1,085	21.00	%	$	315	21.00	%
State income tax, net of federal income tax benefit	29		1.35	%	93		1.80	%	24		1.59	%
Deferred tax adjustment related to change in overall state tax rate	16		0.73	%	(23)		(0.45)	%	(7)		(0.46)	%
Valuation allowance	3		0.13	%	(66)		(1.28)	%	3		0.22	%
Excess executive compensation	11		0.50	%	10		0.20	%	15		1.03	%
Reserve on uncertain tax positions	6		0.31	%	6		0.12	%	1		0.05	%
Tax credits generated	(14)		(0.65)	%	(34)		(0.66)	%	(6)		(0.39)	%



Other, net	5		0.27	%	33		0.62	%	(1)		(0.14)	%
Income tax expense	$	503	23.64	%	$	1,104	21.35	%	$	344	22.90	%

The composition of net deferred tax liabilities is as follows:


	December 31,
(In millions)	2023		2022
Deferred Tax Assets
Net operating losses	$	173	$	196



Incentive compensation	47		24
Deferred compensation	5		30


Capital loss carryforward	16		16

Leases	96		96

Other	42		38
Less: valuation allowance	(114)		(110)
Total	265		290
Deferred Tax Liabilities
Properties and equipment	3,558		3,498

Leases	98		97
Derivative instruments	21		33
Other	1		1
Total	3,678		3,629
Net deferred tax liabilities	$	3,413	$	3,339

A reconciliation of unrecognized tax benefits is as follows:


	Year Ended December 31,
(In millions)	2023		2022		2021
Balance at beginning of period	$	13	$	7	$	6
Additions for tax positions of current period	4		1		1
Additions for tax positions of prior periods	3		5		—

Balance at end of period	$	20	$	13	$	7