INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Benefit (Provision)


Components of income tax provision
	Year Ended December 31,
(in millions)	2025		2024		2023
Current tax provision:
Federal	$	(10)	$	—	$	—
State and local	(17)		(35)		(8)
International	(44)		(11)		(11)
Deferred tax provision:
Federal	(970)		(1,038)		(896)
State and local	(139)		(117)		(84)
Income tax provision	$	(1,180)	$	(1,201)	$	(999)

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:


Reconciliation of statutory federal income tax rate to the effective income tax rate
	Year Ended December 31,
	2025				2024				2023
(in millions, except for percentages)	Amount		Percent		Amount		Percent		Amount		Percent
U.S. federal statutory income tax rate	$	1,299	21.0	%	$	978	21.0	%	$	1,178	21.0	%
State and local income tax, net of federal income tax effect(1)	123		2.0		115		2.5		112		2.0
Nontaxable or nondeductible items	41		0.7		59		1.3		46		0.8
Changes in valuation allowances	(272)		(4.4)		89		1.9		(274)		(4.9)
Other	(11)		(0.2)		(40)		(0.9)		(63)		(1.1)
Effective income tax rate	$	1,180	19.1	%	$	1,201	25.8	%	$	999	17.8	%

(1)New York City, New York, Georgia and California make up the majority (greater than 50%) of the tax effect in this category in 2024 and 2025. Georgia, New York City, New York and New Jersey make up the majority (greater than 50%) of the tax effect in this category in 2023.

Schedule of Deferred Tax Assets and Liabilities


Significant components of deferred income tax assets and liabilities
	December 31,
(in millions)	2025		2024
Deferred tax assets:
Net operating loss carryforwards	$	694	$	799

Pension, postretirement and other benefits	916		1,205
Investments	593		936
Deferred revenue	2,254		2,158
Lease liabilities	2,660		2,816
Other	488		608
Valuation allowance	(643)		(951)
Total deferred tax assets	$	6,962	$	7,571

Deferred tax liabilities:
Depreciation	$	7,839	$	7,040
Operating lease assets	1,264		1,369
Intangible assets	1,188		1,165
Other	114		78
Total deferred tax liabilities	$	10,405	$	9,652

Balance Sheet Position:
Other noncurrent assets	$	1	$	95
Deferred income taxes, net	3,444		2,176
Net deferred tax liabilities	$	3,443	$	2,081

Schedule of Valuation Allowance on Deferred Income Tax Assets

The following table presents the balance of our valuation allowance on our deferred income tax assets and the associated activity:


Valuation allowance activity
(in millions)	2025		2024
Balance at January 1	$	951	$	877
Tax provision	(308)		74

Balance at December 31	$	643	$	951