v3.22.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of geographic allocation of income
Geographic Allocation of Income and Provision for Income Taxes
In millions202220212020
Income (loss) before income taxes
Domestic $767 $531 $558 
Foreign (1)(2)(1)
Income before income taxes$766 $529 $557 
Current tax expense (benefit)
Federal$157 $(11)$82 
State and local9 5 2 
Foreign1 20 — 
Total current tax expense$167 $14 $84 
Deferred tax expense (benefit)
Federal$(2)$122 $42 
State and local3 23 4 
Foreign4 (5)— 
Total deferred tax expense$5 $140 $46 
Provision for income taxes $172 $154 $130 
Net income$594 $375 $427 
Schedule of Effective Income Tax Rate Reconciliation
Reconciliation to U.S. Statutory Rate202220212020
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
Unrecognized tax benefits(0.7)3.0 (0.9)
Federal tax accrual adjustments 0.7 — 3.0 
State and local tax impact1.7 5.3 0.2 
Other - net(0.2)(0.2)— 
Effective Tax Rate 1
22.5 %29.1 %23.3 %
1.The tax rate for 2022 was unfavorably impacted by state and local tax charges. In 2021, the Corporation recognized additional charges related to state and local jurisdictions and an uncertain tax position related to litigation in a foreign jurisdiction which negatively impacted the effective tax rate. The tax rate for 2020 was unfavorably impacted by an accrual-to-return adjustment.
Schedule of Deferred Tax Assets and Liabilities
Deferred Tax Balances at Dec 3120222021
In millionsAssetsLiabilitiesAssetsLiabilities
Property$— $154 $— $167 
Tax loss and credit carryforwards26 — 23 — 
Postretirement benefit obligations72 — 119 — 
Other accruals and reserves293 3 313 6 
Inventory2 — — — 
Other - net18 — 18 — 
Subtotal $411 $157 $473 $173 
Valuation allowances 1
(15)— (12)— 
Total $396 $157 $461 $173 
1.Primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States.
Summary of Operating Loss Carryforwards
Operating Loss and Tax Credit Carryforwards at Dec 3120222021
In millionsAssetsAssets
Operating loss carryforwards
Expire within 5 years$8 $11 
Expire after 5 years or indefinite expiration12 7 
Total operating loss carryforwards$20 $18 
Tax credit carryforwards
Expire within 5 years$5 $5 
Expire after 5 years or indefinite expiration1 — 
Total tax credit carryforwards$6 $5 
Total tax loss and tax credit carryforwards$26 $23 
Schedule of Total Gross Unrecognized Tax Benefits
The following table provides a reconciliation of the Corporation's unrecognized tax benefits:

Total Gross Unrecognized Tax Benefits
In millions202220212020
Total unrecognized tax benefits at Jan 1$8 $1 $1 
Decreases related to positions taken on items from prior years— (1)— 
Increases related to positions taken on items from prior years — 8 — 
Total unrecognized tax benefits at Dec 31$8 $8 $1 
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate$8 $8 $1 
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes"$(10)$11 $(5)
Total accrual for interest and penalties recognized in the consolidated balance sheets$10 $12 $—