Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) From Continuing Operations Before Income Taxes, Domestic and Foreign
Income (loss) from continuing operations before income taxes includes the following components:
Year Ended December 31,
(In millions) 2024 2023 2022
United States $ (894) $ 600  $ 1,803 
Foreign (49) (3) (7)
Total $ (943) $ 597  $ 1,796 
Components of the Income Tax Provision (Benefit) on Continuing Operations
The components of the income tax expense (benefit) from continuing operations consist of the following:
Year Ended December 31,
(In millions) 2024 2023 2022
Current provision:
United States federal $ (38) $ 4  $ 201 
United States state & local (6) 26  131 
Foreign 3  4  1 
(41) 34  333 
Deferred provision (benefit):
United States federal (152) 97  117 
United States state & local (33) 7  (22)
  Foreign (9) 10  (5)
Total income tax expense (benefit) from continuing operations $ (235) $ 148  $ 423 
The components of income taxes for other than continuing operations consisted of the following:
(In millions) 2024 2023 2022
Other comprehensive income (loss):
Pension and OPEB $ 55  $ 10  $ (425)
Derivative instruments (37) 47  26 
Total $ 18  $ 57  $ (399)
Reconciliation of Income Tax Attributable to Continuing Operations Computed at Statutory Rate
Reconciliation of our income tax attributable to continuing operations computed at the U.S. federal statutory rate is as follows:
(In millions) 2024 2023 2022
Tax at U.S. statutory rate $ (198) 21  % $ 125  21  % $ 377  21  %
Increase (decrease) due to:
Percentage depletion in excess of cost depletion (20) 2  (32) (5) (49) (3)
Valuation allowance —  —  14  2  —  — 
Unrecognized tax benefits 7  —  7  1  2  — 
State taxes, net (30) 3  28  5  71  4 
Federal & state provision to return (4) —  (20) (3) 27  1 
Income not subject to tax (10) 1  (11) (2) (9) — 
Goodwill impairment —  —  26  4  —  — 
Other items, net 20  (2) 11  2  4  — 
Provision for income tax expense (benefit) and effective income tax rate including discrete items $ (235) 25  % $ 148  25  % $ 423  23  %
Significant Components of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities are as follows:
(In millions) 2024 2023
Deferred tax assets:
Operating loss and other carryforwards $ 589  $ 390 
Pension and OPEB liabilities 129  155 
Environmental 69  67 
Product inventories 53  92 
State and local 36  9 
Lease liabilities 87  79 
Other liabilities 151  180 
Total deferred tax assets before valuation allowance 1,114  972 
Deferred tax asset valuation allowance (388) (396)
Net deferred tax assets 726  576 
Deferred tax liabilities:
Investment in ventures (181) (192)
Lease assets (88) (79)
Property, plant and equipment and mineral rights (811) (837)
Intangible assets (441) (27)
Other assets (59) (76)
Total deferred tax liabilities (1,580) (1,211)
Net deferred tax liabilities $ (854) $ (635)
Summary of Changes in the Valuation Allowance
The changes in the valuation allowance are presented below:
(In millions) 2024 2023 2022
Balance at beginning of year $ 396  $ 390  $ 409 
Change in valuation allowance:
Income tax (benefit) expense (8) 6  (19)
Balance at end of year $ 388  $ 396  $ 390 
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(In millions) 2024 2023 2022
Unrecognized tax benefits balance as of January 1 $ 76  $ 58  $ 35 
Increases for tax positions in current year 46  18  24 
Decrease due to tax positions in prior year (1) —  (1)
Unrecognized tax benefits balance as of December 31 $ 121  $ 76  $ 58