XML 29 R13.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes |
5. | Income Taxes
The components of “Income Before Income Taxes” are as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions)
U.S. | $ | 663 |  |  | $ | 2,482 |  |  | $ | 1,739 |
Foreign | (2) |  |  | 683 |  |  | 767 |
Total Income Before Income Taxes | $ | 661 |  |  | $ | 3,165 |  |  | $ | 2,506 |
Components of the income tax provision applicable for federal, foreign and state taxes are as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions)
Current tax expense (benefit) |  |  |  |  |
Federal | $ | (20) |  |  | $ | (2) |  |  | $ | (22) |
State | 9 |  |  | 10 |  |  | (45) |
Foreign(a) | 147 |  |  | 201 |  |  | 249 |
Total | 136 |  |  | 209 |  |  | 182 |
Deferred tax expense (benefit) |  |  |  |  |
Federal | 440 |  |  | 682 |  |  | 425 |
State | 49 |  |  | 66 |  |  | 55 |
Foreign(a) | (144) |  |  | (31) |  |  | (75) |
Total | 345 |  |  | 717 |  |  | 405 |
Total tax provision | $ | 481 |  |  | $ | 926 |  |  | $ | 587 |
(a)Our Canadian income tax (benefit) expense was $(4) million, $165 million and $168 million for the years ended December 31, 2020, 2019 and 2018, respectively. The difference between the statutory federal income tax rate and our effective income tax rate is summarized as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions, except percentages)
Federal income tax | $ | 139 |  |  | 21.0 | % |  | $ | 665 |  |  | 21.0 | % |  | $ | 526 |  |  | 21.0 | %
Increase (decrease) as a result of: |  |  |  |  |  |  |  |  |  |  |
Taxes on foreign earnings, net of federal benefit | 2 |  |  | 0.3 | % |  | 139 |  |  | 4.4 | % |  | 131 |  |  | 5.2 | %
Net effects of noncontrolling interests | (13) |  |  | (2.0) | % |  | (10) |  |  | (0.3) | % |  | (65) |  |  | (2.6) | %
State income tax, net of federal benefit | 52 |  |  | 7.9 | % |  | 68 |  |  | 2.1 | % |  | 46 |  |  | 1.8 | %
Dividend received deduction | (27) |  |  | (4.1) | % |  | (39) |  |  | (1.1) | % |  | (31) |  |  | (1.2) | %
Adjustments to uncertain tax positions | 3 |  |  | 0.5 | % |  | (5) |  |  | (0.2) | % |  | (47) |  |  | (1.9) | %
Nondeductible goodwill | 336 |  |  | 50.8 | % |  | 108 |  |  | 3.4 | % |  | 58 |  |  | 2.3 | %
General business credit | — |  |  | — | % |  | — |  |  | — | % |  | (64) |  |  | (2.6) | %
Federal refunds | (20) |  |  | (3.0) | % |  | — |  |  | — | % |  | — |  |  | — | %
Other | 9 |  |  | 1.4 | % |  | — |  |  | — | % |  | 33 |  |  | 1.4 | %
Total | $ | 481 |  |  | 72.8 | % |  | $ | 926 |  |  | 29.3 | % |  | $ | 587 |  |  | 23.4 | %
Deferred tax assets and liabilities result from the following:
| December 31,
| 2020 |  | 2019
| (In millions)
Deferred tax assets |  |  |
Employee benefits | $ | 224 |  |  | $ | 208 |
Net operating loss carryforwards | 1,484 |  |  | 1,261 |
Tax credit carryforwards | 257 |  |  | 258 |
Other | 242 |  |  | 241 |
Valuation allowances | (138) |  |  | (155) |
Total deferred tax assets | 2,069 |  |  | 1,813 |
Deferred tax liabilities |  |  |
Property, plant and equipment | 414 |  |  | 385 |
Investments | 1,084 |  |  | 529 |
Other | 35 |  |  | 42 |
Total deferred tax liabilities | 1,533 |  |  | 956 |
Net deferred tax assets | $ | 536 |  |  | $ | 857 |
Deferred Tax Assets and Valuation Allowances We have deferred tax assets of $1,484 million related to net operating loss carryovers, $257 million related to general business and foreign tax credits, and $100 million of valuation allowances related to these deferred tax assets as of December 31, 2020. As of December 31, 2019, we had deferred tax assets of $1,261 million related to net operating loss carryovers, $258 million related to general business and foreign tax credits, and $117 million of valuation allowances related to these deferred tax assets. We expect to generate taxable income and begin to utilize federal net operating loss carryforwards and tax credits in 2024. We decreased our valuation allowances in 2020 by $17 million, primarily due to $9 million of statute expirations for state net operating losses and $8 million of currency fluctuations on foreign net operating losses. Expiration Periods for Deferred Tax Assets: As of December 31, 2020, we have U.S. federal net operating loss carryforwards of $2.6 billion that will be carried forward indefinitely and $3.4 billion that will expire from 2021 - 2037; state losses of $3.8 billion which will expire from 2021 - 2039; and foreign losses of $83 million which will be carried forward indefinitely. We also have $240 million of general business credits which will expire from 2021 - 2039; and approximately $17 million of foreign tax credits, which will expire from 2021 - 2027. Use of a portion of our U.S. federal carryforwards is subject to the limitations provided under Sections 382 and 383 of the Internal Revenue Code as well as the separate return limitation rules of Internal Revenue Service regulations. If certain substantial changes in our ownership occur, there would be an annual limitation on the amount of carryforwards that could be utilized. Unrecognized Tax Benefits: We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based not only on the technical merits of the tax position based on tax law, but also the past administrative practices and precedents of the taxing authority. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Our gross unrecognized tax benefit balances, excluding immaterial amounts of interest and penalties, were $18 million, $16 million and $34 million as of December 31, 2020, 2019 and 2018, respectively. Reductions based on settlements with taxing authorities were $0 million, $21 million and $73 million for the years ended December 31, 2020, 2019 and 2018, respectively. All of the $18 million of unrecognized tax benefits, if recognized, would affect our effective tax rate in future periods. In addition, we believe it is reasonably possible that our liability for unrecognized tax benefits will decrease by approximately $1 million during the next year to approximately $17 million, primarily due to releases from statute expirations, offset by additions for state filing positions taken in prior years. We are subject to taxation, and have tax years open to examination for the periods 2016-2019 in the U.S., which include net operating loss utilization from earlier years, 2006-2019 in various states and 2007-2019 in various foreign jurisdictions.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration