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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Taxes |
Schedule of income tax provision for continuing operations | The income tax provision for continuing operations consisted of the following for the years ended December 31:
In millions |  | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,594 |  | $ | 2,803 |  | $ | 3,065
State |  |  | 464 |  |  | 511 |  |  | 555
|  |  | 3,058 |  |  | 3,314 |  |  | 3,620
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (1,435) |  |  | 5 |  |  | (180)
State |  |  | 14 |  |  | (2) |  |  | (54)
|  |  | (1,421) |  |  | 3 |  |  | (234)
Total |  | $ | 1,637 |  | $ | 3,317 |  | $ | 3,386
Reconciliation of the statutory income tax rate to the Company's effective income tax rate for continuing operations | On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the “TCJA”). Among numerous changes to existing tax laws, the TCJA permanently reduces the federal corporate income tax rate from 35% to 21% effective on January 1, 2018. The effects on deferred tax balances of changes in tax rates are required to be taken into consideration in the period in which the changes are enacted, regardless of when they are effective. As the result of the reduction of the corporate income tax rate under the TCJA, the Company estimated the revaluation of its net deferred tax liabilities and recorded a provisional income tax benefit of approximately $1.5 billion for year ended December 31, 2017. The Company has not completed all of its processes to determine the TCJA’s final impact. The final impact may differ from this provisional amount due to, among other things, changes in interpretations and assumptions the Company has made thus far and the issuance of additional regulatory or other guidance. The accounting is expected to be completed by the time the 2017 federal corporate income tax return is filed in 2018. The following table is a reconciliation of the statutory income tax rate to the Company’s effective income tax rate for continuing operations for the years ended December 31:
|  | 2017 |  | 2016 |  | 2015 |
Statutory income tax rate |  | 35.0 | % | 35.0 | % | 35.0 | %
State income taxes, net of federal tax benefit |  | 4.1 |  | 4.1 |  | 4.0 |
Provisional effect of the Tax Cuts and Jobs Act |  | (18.3) |  | — |  | — |
Other |  | (1.0) |  | (0.7) |  | 0.3 |
Effective income tax rate |  | 19.8 | % | 38.4 | % | 39.3 | %
Summary of the significant components of the Company's deferred tax assets and liabilities | The following table is a summary of the components of the Company’s deferred income tax assets and liabilities as of December 31:
In millions |  | 2017 |  | 2016
Deferred income tax assets: |  |  |  |  |  |
Lease and rents |  | $ | 291 |  | $ | 375
Inventory |  |  | 31 |  |  | 57
Employee benefits |  |  | 246 |  |  | 400
Allowance for doubtful accounts |  |  | 187 |  |  | 301
Retirement benefits |  |  | 40 |  |  | 65
Net operating loss and capital loss carryforwards |  |  | 101 |  |  | 125
Deferred income |  |  | 93 |  |  | 144
Other |  |  | 18 |  |  | 336
Valuation allowance |  |  | (77) |  |  | (135)
Total deferred income tax assets |  |  | 930 |  |  | 1,668
Deferred income tax liabilities: |  |  |  |  |  |
Depreciation and amortization |  |  | (3,926) |  |  | (5,882)
Total deferred income tax liabilities |  |  | (3,926) |  |  | (5,882)
Net deferred income tax liabilities |  | $ | (2,996) |  | $ | (4,214)
Reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
In millions |  | 2017 |  | 2016 |  | 2015
Beginning balance |  | $ | 307 |  | $ | 338 |  | $ | 188
Additions based on tax positions related to the current year |  |  | 62 |  |  | 68 |  |  | 57
Additions based on tax positions related to prior years |  |  | 32 |  |  | 70 |  |  | 122
Reductions for tax positions of prior years |  |  | (28) |  |  | (100) |  |  | (11)
Expiration of statutes of limitation |  |  | (10) |  |  | (22) |  |  | (13)
Settlements |  |  | (19) |  |  | (47) |  |  | (5)
Ending balance |  | $ | 344 |  | $ | 307 |  | $ | 338

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32840-109319 + Details
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