Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of earnings from continuing operations before income taxes

The components of earnings from continuing operations before income taxes and the provision for (benefit from) income taxes from continuing operations were as follows:

	Years ended December 31,
	2018			2017		2016
	(In thousands)
Earnings from continuing operations before income taxes:
United States	$	356,644		254,355		344,614
Foreign	17,217			60,190		62,642
Total	$	373,861		314,545		407,256
Current tax (benefit) expense from continuing operations:
Federal (1)	$	(23,333	)	6,752		2,731
State	6,862			9,360		7,713
Foreign	10,123			6,442		6,411
	(6,348		)	22,554		16,855
Deferred tax expense (benefit) from continuing operations:
Federal	110,408			(510,172	)	106,718
State	313			8,080		16,299
Foreign	(6,119		)	1,794		2,152
	104,602			(500,298	)	125,169
Provision for (benefit from) income taxes from continuing operations	$	98,254		(477,744	)	142,024

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(1) The 2018 current federal tax benefit includes the anticipated $22 million alternative minimum tax refunds (net of sequestration charge) generated by the 2017 Tax Cuts and Jobs Act.

Reconciliation of federal statutory tax rate with effective tax rate from continuing operations

A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows:

	Years ended December 31,
	2018		2017		2016
	(Percentage of pre-tax earnings)
Federal statutory tax rate	21.0		35.0		35.0
Impact of one-time deemed repatriation	6.4		10.7		—
Impact on deferred taxes for changes in tax rates	(3.5	)	(196.4	)	(0.1	)
Additional deferred tax adjustments	(1.6	)	—		—
State income taxes, net of federal income tax benefit	3.8		3.0		4.0
Foreign rates varying from federal statutory tax rate	0.1		(4.0	)	(3.3	)
Tax contingencies	(1.1	)	(0.3	)	(0.2	)
Other, net	1.2		0.1		(0.5	)
Effective tax rate	26.3		(151.9	)	34.9

Components of net deferred income tax liability

The components of the net deferred income tax liability were as follows:

	December 31,
	2018			2017
	(In thousands)
Deferred income tax assets:
Self-insurance accruals	$	82,042		75,198
Net operating loss carryforwards	414,143			171,053
Alternative minimum taxes (1)	—			22,552
Accrued compensation and benefits	56,066			63,536
Federal benefit on state tax positions	11,027			11,950
Pension benefits	91,890			82,547
Miscellaneous other accruals	20,760			19,608
	675,928			446,444
Valuation allowance	(16,186		)	(18,667	)
	659,742			427,777
Deferred income tax liabilities:
Property and equipment basis difference	(1,936,372		)	(1,614,963	)
Other	(13,940		)	(16,857	)
	(1,950,312		)	(1,631,820	)
Net deferred income tax liability (2)	$	(1,290,570	)	(1,204,043	)

______________ 

(1) The current and noncurrent portions of the AMT credit refunds were reclassified to "Prepaid expenses and other current assets" and "Direct financing leases and other assets" in 2018.

(2) Deferred tax assets of $14 million and $7 million have been included in "Direct financing leases and other assets" at December 31, 2018 and 2017.

Summary of activity related to unrecognized tax benefits

The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):

	December 31,
	2018			2017		2016
	(In thousands)
Balance at January 1	$	62,288		61,649		60,740
Additions based on tax positions related to the current year	3,885			3,971		3,855
Reductions due to lapse of applicable statutes of limitation	(7,354		)	(3,332	)	(2,946	)
Gross balance at December 31	58,819			62,288		61,649
Interest and penalties	4,594			5,860		5,219
Balance at December 31	$	63,413		68,148		66,868