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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Summary of Tax Expenses | Income taxes are summarized as follows:
| Year ended December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
| (in millions) |
Current: |  |  |  |  |  |  |  |  |  |  |
Federal | $ | 244 |  |  | $ | 191 |  |  | $ | 167 |
State |  | 37 |  |  |  | 27 |  |  |  | 4 |
Foreign |  | 20 |  |  |  | 12 |  |  |  | 8 |
|  | 301 |  |  |  | 230 |  |  |  | 179 |
Deferred: |  |  |  |  |  |  |  |  |  |  |
Federal |  | 65 |  |  |  | (18 | ) |  |  | 11 |
State |  | 24 |  |  |  | 1 |  |  |  | 2 |
Foreign |  | 3 |  |  |  | 10 |  |  |  | 3 |
|  | 92 |  |  |  | (7 | ) |  |  | 16 |
| $ | 393 |  |  | $ | 223 |  |  | $ | 195 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s actual income taxes differ from the amounts computed by applying the federal income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019. A reconciliation of these differences is as follows:
| Year ended December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
| (dollars in millions) |
Taxes calculated at federal rate | $ | 345 |  |  |  | 21.0 | % |  | $ | 194 |  |  |  | 21.0 | % |  | $ | 190 |  |  |  | 21.0 | %
State taxes, net of federal benefit |  | 48 |  |  |  | 2.9 |  |  |  | 22 |  |  |  | 2.4 |  |  |  | 18 |  |  |  | 2.0 |
Change in liability for tax positions |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (14 | ) |  |  | (1.5 | )
Foreign income taxed at different rates |  | 1 |  |  |  | 0.1 |  |  |  | 5 |  |  |  | 0.6 |  |  |  | 1 |  |  |  | 0.1 |
Unremitted foreign earnings |  | 1 |  |  |  | 0.1 |  |  |  | (2 | ) |  |  | (0.2 | ) |  |  | 3 |  |  |  | 0.3 |
Other items, net |  | (2 | ) |  |  | (0.2 | ) |  |  | 4 |  |  |  | 0.3 |  |  |  | (3 | ) |  |  | (0.3 | )
| $ | 393 |  |  |  | 23.9 | % |  | $ | 223 |  |  |  | 24.1 | % |  | $ | 195 |  |  |  | 21.6 | %
Net Deferred Tax (Liability) Assets | The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows:
| December 31, |
| 2021 |  |  | 2020 |
| (in millions) |
Deferred tax assets: |  |  |  |  |  |  |
Deferred revenue | $ | 11 |  |  | $ | 9 |
Employee benefits |  | 102 |  |  |  | 95 |
Bad debt reserves |  | 7 |  |  |  | 7 |
Pension |  | 30 |  |  |  | 34 |
Net operating loss carryforward |  | 10 |  |  |  | 11 |
Foreign tax credit |  | 4 |  |  |  | 7 |
Operating lease liabilities |  | 58 |  |  |  | 66 |
Payroll taxes |  | 5 |  |  |  | 12 |
Other |  | 6 |  |  |  | 5 |
|  | 233 |  |  |  | 246 |
Valuation allowance |  | (8 | ) |  |  | (9 | )
|  | 225 |  |  |  | 237 |
Deferred tax liabilities: |  |  |  |  |  |  |
Depreciable and amortizable assets |  | 274 |  |  |  | 271 |
Claims and related salvage |  | 89 |  |  |  | 90 |
Investments in affiliates |  | 63 |  |  |  | 7 |
Securities |  | 65 |  |  |  | 75 |
Operating lease assets |  | 52 |  |  |  | 59 |
Unremitted foreign earnings |  | 13 |  |  |  | 12 |
|  | 556 |  |  |  | 514 |
Net deferred tax liability | $ | 331 |  |  | $ | 277 |
Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 is as follows:
| Year ended December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
| (in millions) |
Unrecognized tax benefits—beginning balance | $ | 7 |  |  | $ | 1 |  |  | $ | 13 |
Gross increases (decreases)—prior period tax positions |  | — |  |  |  | 5 |  |  |  | (9 | )
Gross increases—current period tax positions |  | 1 |  |  |  | 1 |  |  |  | 1 |
Settlements with taxing authorities |  | — |  |  |  | — |  |  |  | (4 | )
Unrecognized tax benefits—ending balance | $ | 8 |  |  | $ | 7 |  |  | $ | 1 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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