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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the income tax expense from continuing operations are as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (Dollars in millions)
Income tax expense: |  |  |  |  |
Federal and foreign |  |  |  |  |
Current | $ | 514 |  |  | 553 |  |  | 425 |
Deferred | 6 |  |  | 17 |  |  | 40 |
State and local |  |  |  |  |
Current | 137 |  |  | 129 |  |  | 128 |
Deferred | 14 |  |  | 10 |  |  | 2 |
Income tax expense | $ | 671 |  |  | 709 |  |  | 595 |
The effective income tax rate for continuing operations differs from the statutory tax rate as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in percent)
Effective income tax rate: |  |  |  |  |
Federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes-net of federal effect | 4.3 | % |  | 3.7 | % |  | 4.4 | %
Other | 0.6 | % |  | 0.5 | % |  | 0.4 | %
Effective income tax rate | 25.9 | % |  | 25.2 | % |  | 25.8 | %
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 |  | 2021
| (Dollars in millions)
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | (1,414) |  |  | (1,386) |
Intangible assets | (114) |  |  | (129) |
Other | (54) |  |  | (25) |
Total deferred tax liabilities | (1,582) |  |  | (1,540) |
Deferred tax assets: |  |  |
Payable to affiliate due to post-retirement benefit plan participation | 302 |  |  | 274 |
Gross deferred tax assets | 302 |  |  | 274 |
Less valuation allowance on deferred tax assets | — |  |  | (8) |
Net deferred tax assets | 302 |  |  | 266 |
Net deferred tax liabilities | $ | (1,280) |  |  | (1,274) |
At December 31, 2022, we had no established valuation allowance based on our assessment of whether it is not more likely than not that our deferred tax assets will be realized. As of both December 31, 2022 and 2021, the $1.3 billion net deferred tax liabilities are included in long-term liabilities on our consolidated balance sheet. With few exceptions, we are no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2016. The Internal Revenue Service and state and local taxing authorities reserve the right to audit any period where net operating loss carryforwards are available. A reconciliation of the change in our gross unrecognized tax benefits (excluding both interest and any related federal benefit) from January 1 st to December 31 st for 2022 and 2021 are as follows:
| Years ended December 31,
| 2022 |  | 2021
| (Dollars in millions)
Unrecognized tax benefits at beginning of period | $ | 360 |  |  | 388 |
Decrease due to tax positions taken in a prior year | (28) |  |  | (28) |
Unrecognized tax benefits at end of period | $ | 332 |  |  | 360 |
The total amount of unrecognized tax benefits (including interest and net of federal benefit) that, if recognized, would impact the effective income tax rate was $397 million and $407 million as of December 31, 2022 and 2021, respectively. Our policy is to reflect interest expense associated with unrecognized tax benefits in income tax expense. We had accrued interest (presented before related tax benefits) of approximately $95 million and $75 million as of December 31, 2022 and 2021, respectively. Based on our current assessment of various factors, including (i) the potential outcomes of these ongoing examinations, (ii) the expiration of statute of limitations for specific jurisdictions, (iii) the negotiated settlement of certain disputed issues, and (iv) the administrative practices of applicable taxing jurisdictions, it is reasonably possible that the related unrecognized tax benefits for uncertain tax positions previously taken may not change in the next 12 months. The actual amount of changes, if any, will depend on future developments and events, many of which are outside our control. We paid $673 million, $697 million, and $556 million related to income taxes for the years ended December 31, 2022, 2021, and 2020, respectively.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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