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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes
| 2021 |  | 2020 |  | 2019
| ($ in millions)
Current: |  |  |  |  |
Federal | $ | 553 |  |  | $ | 307 |  |  | $ | 356 |
State | 136 |  |  | 68 |  |  | 83 |
Total current taxes | 689 |  |  | 375 |  |  | 439 |
Deferred: |  |  |  |  |
Federal | 186 |  |  | 111 |  |  | 280 |
State | (2) |  |  | 31 |  |  | 50 |
Total deferred taxes | 184 |  |  | 142 |  |  | 330 |
Income taxes | $ | 873 |  |  | $ | 517 |  |  | $ | 769 |
Reconciliation of Statutory Rate to Effective Rate “Income taxes” on the Consolidated Statements of Income differs from the amounts computed by applying the statutory federal corporate tax rate as follows:
| 2021 |  | 2020 |  | 2019
| Amount |  | % |  | Amount |  | % |  | Amount |  | %
| ($ in millions)
Federal income tax at statutory rate | $ | 814 |  |  | 21.0 |  |  | $ | 531 |  |  | 21.0 |  |  | $ | 733 |  |  | 21.0 |
State income taxes, net of federal tax effect | 109 |  |  | 2.8 |  |  | 85 |  |  | 3.3 |  |  | 110 |  |  | 3.1 |
Excess tax benefits on stock-based compensation | (25) |  |  | (0.6) |  |  | (39) |  |  | (1.5) |  |  | (29) |  |  | (0.8) |
Other, net | (25) |  |  | (0.7) |  |  | (60) |  |  | (2.4) |  |  | (45) |  |  | (1.3) |
Income taxes | $ | 873 |  |  | 22.5 |  |  | $ | 517 |  |  | 20.4 |  |  | $ | 769 |  |  | 22.0 |
Deferred Tax Assets and Liabilities Certain items are reported in different periods for financial reporting and income tax purposes. Deferred tax assets and liabilities are recorded in recognition of these differences. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:
| December 31,
| 2021 |  | 2020
| ($ in millions)
Deferred tax assets: |  |  |
Compensation and benefits, including postretirement benefits | $ | 181 |  |  | $ | 218 |
Accruals, including casualty and other claims | 92 |  |  | 93 |
Other | 188 |  |  | 198 |
Total gross deferred tax assets | 461 |  |  | 509 |
Less valuation allowance | (60) |  |  | (57) |
Net deferred tax assets | 401 |  |  | 452 |
Deferred tax liabilities: |  |  |
Property | (7,016) |  |  | (6,820) |
Other | (550) |  |  | (554) |
Total deferred tax liabilities | (7,566) |  |  | (7,374) |
Deferred income taxes | $ | (7,165) |  |  | $ | (6,922) |
Except for amounts for which a valuation allowance has been provided, we believe that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The valuation allowance at the end of each year primarily relates to subsidiary state income tax net operating losses and state investment tax credits that may not be utilized prior to their expiration. The total valuation allowance increased by $3 million in both 2021 and 2020, and $4 million in 2019. Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| December 31,
| 2021 |  | 2020
| ($ in millions)
Balance at beginning of year | $ | 22 |  |  | $ | 24 |
Additions based on tax positions related to the current year | 3 |  |  | 4 |
Additions for tax positions of prior years | 3 |  |  | — |
Settlements with taxing authorities | (5) |  |  | (4) |
Lapse of statutes of limitations | (2) |  |  | (2) |
Balance at end of year | $ | 21 |  |  | $ | 22 |
Included in the balance of unrecognized tax benefits at December 31, 2021 are potential benefits of $17 million that would affect the effective tax rate if recognized. Unrecognized tax benefits are adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. The statute of limitations on Internal Revenue Service (IRS) examinations has expired for all years prior to 2018. The IRS accepted our 2012 amended income tax return. As a result, we received a refund of $46 million and recognized a tax benefit of $19 million in 2020. State income tax returns generally are subject to examination for a period of three to four years after filing the return. In addition, we are generally obligated to report changes in taxable income arising from federal income tax examinations to the states within a period of up to two years from the date the federal examination is final. We have various state income tax returns either under examination, administrative appeal, or litigation.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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