Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Our sources of Income (loss) before income taxes were as follows:

Income tax expense is summarized as follows:


	Year Ended December 31,
(in millions)	2023		2022		2021
Current tax (expense) benefit
Federal	$	(42)	$	22	$	(22)
State	(28)		(64)		(89)
Foreign	(12)		(22)		(19)
Total current tax expense	(82)		(64)		(130)
Deferred tax (expense) benefit
Federal	(2,150)		(628)		(541)
State	(417)		77		327
Foreign	(33)		59		17
Total deferred tax expense	(2,600)		(492)		(197)
Total income tax expense	$	(2,682)	$	(556)	$	(327)

The reconciliation between the U.S. federal statutory income tax rate and our effective income tax rate is as follows:


	Year Ended December 31,
	2023		2022		2021
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	4.2		4.5		4.5
Effect of law and rate changes	(0.1)		(5.3)		(1.7)
Change in valuation allowance	(0.2)		(0.8)		(10.7)
Foreign taxes	0.4		0.7		0.1
Permanent differences	(0.1)		(0.2)		0.3
Federal tax credits	(0.8)		(2.4)		(2.5)
Equity-based compensation	(0.4)		(1.2)		(2.6)
Non-deductible compensation	0.5		1.2		1.5
Other, net	(0.1)		0.2		(0.1)
Effective income tax rate	24.4	%	17.7	%	9.8	%

Significant components of deferred income tax assets and liabilities, tax effected, are as follows:


(in millions)	December 31, 2023		December 31, 2022
Deferred tax assets
Loss carryforwards	$	6,227	$	6,641

Lease liabilities	8,355		8,837

Reserves and accruals	1,177		1,526
Federal and state tax credits	426		373

Other	4,033		4,349
Deferred tax assets, gross	20,218		21,726
Valuation allowance	(306)		(375)
Deferred tax assets, net	19,912		21,351
Deferred tax liabilities
Spectrum licenses	19,006		18,341
Property and equipment	6,142		5,147
Lease right-of-use assets	7,043		7,461
Other intangible assets	350		519
Other	829		767
Total deferred tax liabilities	33,370		32,235
Net deferred tax liabilities	$	13,458	$	10,884

Classified on the consolidated balance sheets as:
Deferred tax liabilities	$	13,458	$	10,884

A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:


	Year Ended December 31,
(in millions)	2023		2022		2021
Unrecognized tax benefits, beginning of year	$	1,254	$	1,217	$	1,159
Gross increases to tax positions in prior periods	19		31		73
Gross decreases to tax positions in prior periods	(39)		(65)		(123)
Gross increases to current period tax positions	256		77		72
Gross increases due to current period business acquisitions	—		—		36
Gross decreases due to settlements with taxing authorities	—		(3)		—
Gross decreases due to statute of limitations lapse	(13)		(3)		—
Unrecognized tax benefits, end of year	$	1,477	$	1,254	$	1,217