| Schedule of income tax provision |
Our income tax provision consisted of the following: | | | | | | | | | | | | | Year Ended December 31, | | (in millions) | 2019 | 2018 | 2017 | | Current tax benefit (provision): | | | | | Federal | $ | 94 | | $ | 187 | | $ | (4) | | | State and local | (39) | | (26) | | 5 | | | International | (13) | | (13) | | (54) | | | Deferred tax provision: | | | | | | | Federal | (1,343) | | (1,226) | | (2,093) | | | State and local | (130) | | (138) | | (149) | | | Income tax provision | $ | (1,431) | | $ | (1,216) | | $ | (2,295) | |
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| Schedule of effective income tax rate reconciliation |
The following table presents the principal reasons for the difference between the effective tax rate and the U.S. federal statutory income tax rate: | | | | | | | | | | | | | Year Ended December 31, | | 2019 | 2018 | 2017 | | U.S. federal statutory income tax rate | 21.0 | % | 21.0 | % | 35.0 | % | | State taxes, net of federal benefit | 2.3 | | 2.5 | | 1.8 | | | Foreign tax rate differential | — | | 0.1 | | (2.2) | | | Tax Cuts and Jobs Act adjustment | — | | (0.5) | | 7.2 | | | Other | (0.2) | | 0.5 | | — | | | Effective income tax rate | 23.1 | % | 23.6 | % | 41.8 | % |
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| Schedule of deferred taxes |
The following table shows significant components of our deferred tax assets and liabilities: | | | | | | | | | | December 31, | | (in millions) | 2019 | 2018 | | Deferred tax assets: | | | | Net operating loss carryforwards | $ | 560 | | $ | 674 | | | Pension, postretirement and other benefits | 2,241 | | 2,435 | | | Alternative minimum tax credit carryforward | 94 | | 189 | | | Deferred revenue | 1,667 | | 1,620 | | | Operating lease liabilities | 1,446 | | 1,579 | | | Other | 350 | | 357 | | | Valuation allowance | (58) | | (13) | | | Total deferred tax assets | $ | 6,300 | | $ | 6,841 | | | Deferred tax liabilities: | | | | Depreciation | $ | 5,190 | | $ | 4,185 | | | Operating lease right-of-use assets | 1,298 | | 1,388 | | | Intangible assets | 1,049 | | 1,052 | | | Other | 99 | | 137 | | | Total deferred tax liabilities | $ | 7,636 | | $ | 6,762 | | | | | Net deferred tax (liabilities) assets(1) | $ | (1,336) | | $ | 79 | |
(1)At December 31, 2019, the net deferred tax liabilities of $1.3 billion included $120 million of net state deferred tax assets, which are recorded in other noncurrent assets, and $1.5 billion of net federal deferred tax liabilities, which are recorded in deferred income taxes, net. At December 31, 2018, the net deferred tax assets of $79 million included $242 million of net state deferred tax assets, which are recorded in other noncurrent assets, and $163 million of net federal deferred tax liabilities, which are recorded in deferred income taxes, net.
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