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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Tax Expenses

Income taxes are summarized as follows:

		Year ended December 31,
		2022				2021				2020
		(in millions)
Current:
Federal		$	132			$	244			$	191
State			19				37				27
Foreign			18				20				12
			169				301				230
Deferred:
Federal			(80	)			65				(18	)
State			(25	)			24				1
Foreign			(3	)			3				10
			(108	)			92				(7	)
		$	61			$	393			$	223

Schedule of Effective Income Tax Rate Reconciliation

The Company’s actual income tax expense differs from the expense computed by applying the federal income tax rate of 21% for the years ended December 31, 2022, 2021 and 2020. A reconciliation of these differences is as follows:

		Year ended December 31,
		2022								2021								2020
		(dollars in millions)
Taxes calculated at federal rate		$	68				21.0	%		$	345				21.0	%		$	194				21.0	%
State taxes, net of federal benefit			(5	)			(1.5	)			48				2.9				22				2.4
Change in liability for tax positions			(1	)			(0.3	)			—				—				—				—
Foreign income taxed at different rates			2				0.6				1				0.1				5				0.6
Unremitted foreign earnings			—				—				1				0.1				(2	)			(0.2	)
Other items, net			(3	)			(1.1	)			(2	)			(0.2	)			4				0.3
		$	61				18.7	%		$	393				23.9	%		$	223				24.1	%

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,
		2022				2021
		(in millions)
Deferred tax assets:
Deferred revenue		$	8			$	11
Employee benefits			97				102
Bad debt reserves			12				7
Pension			13				30
Net operating loss carryforward			29				10
Foreign tax credit			5				4
Operating lease liabilities			59				58
Payroll taxes			—				5
Securities			264				—
Other			10				6
			497				233
Valuation allowance			(7	)			(8	)
			490				225
Deferred tax liabilities:
Depreciable and amortizable assets			282				274
Claims and related salvage			82				89
Investments in affiliates			26				63
Securities			—				65
Operating lease assets			53				52
Unremitted foreign earnings			12				13
			455				556
Net deferred tax asset (liability)		$	35			$	(331	)

Changes in Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows:

		Year ended December 31,
		2022				2021				2020
		(in millions)
Unrecognized tax benefits—beginning balance		$	8			$	7			$	1
Gross increases (decreases)—prior period tax    positions			—				—				5
Gross increases—current period tax positions			1				1				1
Settlements with taxing authorities			(6	)			—				—
Unrecognized tax benefits—ending balance		$	3			$	8			$	7

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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.

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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.

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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.

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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.

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