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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of components of provision for income tax | The components of the income tax expense are as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (Dollars in millions)
Income tax expense: |  |  |  |  |
Federal |  |  |  |  |
Current | $ | 838 |  |  | 5 |  |  | 5 |
Deferred | (332) |  |  | 514 |  |  | 338 |
State |  |  |  |  |
Current | 283 |  |  | 42 |  |  | 50 |
Deferred | (191) |  |  | 72 |  |  | 55 |
Foreign |  |  |  |  |
Current | 32 |  |  | 23 |  |  | 29 |
Deferred | (73) |  |  | 12 |  |  | (27) |
Total income tax expense | $ | 557 |  |  | 668 |  |  | 450 |
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (Dollars in millions)
Income tax expense was allocated as follows: |  |  |  |  |
Income tax expense in the consolidated statements of operations: |  |  |  |  |
Attributable to income | $ | 557 |  |  | 668 |  |  | 450 |
Stockholders' equity: |  |  |  |  |
Tax effect of the change in accumulated other comprehensive loss | $ | 297 |  |  | 222 |  |  | 17 |
Schedule of reconciliation of the statutory federal income tax rate to effective income tax rate | The following is a reconciliation from the statutory federal income tax rate to our effective income tax rate:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (Percentage of pre-tax (loss) income)
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal income tax benefit | (8.8) | % |  | 3.3 | % |  | (10.8) | %
Goodwill impairment | (68.9) | % |  | — | % |  | (71.0) | %
Change in liability for unrecognized tax position | (0.2) | % |  | 0.1 | % |  | (0.6) | %
Legislative changes to Global Intangible Low-Taxes Income ("GILTI") | — | % |  | — | % |  | 1.8 | %
Nondeductible executive stock compensation | (0.1) | % |  | 0.2 | % |  | (1.6) | %
Change in valuation allowance | 0.9 | % |  | — | % |  | 2.6 | %
Net foreign income taxes | 3.0 | % |  | 0.6 | % |  | (0.6) | %
Research and development credits | 1.1 | % |  | (0.5) | % |  | 1.6 | %
Divestitures of businesses(1) | (4.0) | % |  | — | % |  | — | %
Other, net | (0.2) | % |  | — | % |  | 0.1 | %
Effective income tax rate | (56.2) | % |  | 24.7 | % |  | (57.5) | %
_______________________________________________________________________________ (1)Includes GILTI incurred as a result of the sale of our Latin American business.
Schedule of components of deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:
| As of December 31,
| 2022(1) |  | 2021(1)
| (Dollars in millions)
Deferred tax assets |  |  |
Post-retirement and pension benefit costs | $ | 725 |  |  | 978 |
Net operating loss carryforwards | 871 |  |  | 2,463 |
Other employee benefits | 85 |  |  | 96 |
Other | 519 |  |  | 554 |
Gross deferred tax assets | 2,200 |  |  | 4,091 |
Less valuation allowance | (550) |  |  | (1,566) |
Net deferred tax assets | 1,650 |  |  | 2,525 |
Deferred tax liabilities |  |  |
Property, plant and equipment, primarily due to depreciation differences | (3,046) |  |  | (3,941) |
Goodwill and other intangible assets | (1,634) |  |  | (2,473) |
Gross deferred tax liabilities | (4,680) |  |  | (6,414) |
Net deferred tax liability | $ | (3,030) |  |  | (3,889) |
_______________________________________________________________________________ (1)Excludes $138 million of deferred tax assets and $38 million of deferred tax liabilities related to the EMEA business that were classified as held for sale as of December 31, 2022. Excludes $46 million of deferred tax assets and $129 million of deferred tax liabilities related to the Latin American business sold on August 1, 2022 that were classified as held for sale as of December 31, 2021. There were no material deferred tax amounts classified as held for sale related to the ILEC business.
Summary of the reconciliation of the change in gross unrecognized tax benefits | A reconciliation of the change in our gross unrecognized tax benefits (excluding both interest and any related federal benefit) from January 1 to December 31 for 2022 and 2021 is as follows:
| 2022 |  | 2021
| (Dollars in millions)
Unrecognized tax benefits at beginning of year | $ | 1,375 |  |  | 1,474 |
Increase in tax positions of the current year netted against deferred tax assets | — |  |  | 1 |
Increase in tax positions of prior periods netted against deferred tax assets | — |  |  | — |
Decrease in tax positions of the current year netted against deferred tax assets | — |  |  | (101) |
Decrease in tax positions of prior periods netted against deferred tax assets | (661) |  |  | (1) |
Increase in tax positions taken in the current year | 634 |  |  | 4 |
(Decrease) increase in tax positions taken in the prior year | (3) |  |  | 2 |
Decrease due to payments/settlements | — |  |  | (3) |
Decrease from the lapse of statute of limitations | — |  |  | (1) |
Decrease related to divestitures of businesses | $ | (27) |  |  | — |
Unrecognized tax benefits at end of year | $ | 1,318 |  |  | $ | 1,375 |
Summary of NOLs | The federal NOLs will expire as follows:
Expiring | Amount
December 31, | (Dollars in millions)
2028 | 572 |
2029 | 645 |
2030 | 668 |
2031 | 733 |
2032 | 348 |
2033 | 238 |
NOLs per return | 3,204 |
Uncertain tax positions | (2,190) |
Financial NOLs | $ | 1,014 |

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