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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) from continuing operations before taxes related to our U.S. and foreign operations was as follows:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
U.S. |  | $ | 303 |  |  | $ | 108 |  |  | $ | (128) |
Foreign |  | (45) |  |  | (1) |  |  | (36) |
Income (loss) from continuing operations before income tax provision (benefit) |  | $ | 258 |  |  | $ | 107 |  |  | $ | (164) |
The income tax provision (benefit) is comprised of the following:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |  |
U.S. Federal |  | $ | (17) |  |  | $ | — |  |  | $ | 1 |
State |  | 2 |  |  | (1) |  |  | (4) |
Foreign |  | 9 |  |  | 5 |  |  | 12 |
Total current income tax provision (benefit) |  | $ | (6) |  |  | $ | 4 |  |  | $ | 9 |
Deferred: |  |  |  |  |  |
U.S. Federal |  | $ | 80 |  |  | $ | (10) |  |  | $ | (38) |
State |  | 5 |  |  | (7) |  |  | (2) |
Foreign |  | (5) |  |  | 24 |  |  | (23) |
Total deferred income tax provision (benefit) |  | 80 |  |  | 7 |  |  | (63) |
Total income tax provision (benefit) |  | $ | 74 |  |  | $ | 11 |  |  | $ | (54) |
The effective tax rate reconciliations were as follows:
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
U.S. federal statutory tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of U.S. federal benefit |  | 1.8 |  |  | (4.4) |  |  | 1.8 |
Foreign operations (1) |  | (2.8) |  |  | 27.1 |  |  | 2.4 |
Contribution- and margin-based taxes |  | 1.6 |  |  | 4.4 |  |  | (4.8) |
Changes in uncertain tax positions |  | (0.1) |  |  | 0.5 |  |  | (0.6) |
Non-deductible compensation |  | 3.8 |  |  | 10.9 |  |  | (0.1) |
Provision to return adjustments |  | (2.0) |  |  | 8.0 |  |  | 2.4 |
Effect of law changes |  | 0.1 |  |  | (5.4) |  |  | (0.4) |
Stock-based compensation |  | (0.3) |  |  | (4.3) |  |  | 8.9 |
Long-term capital loss |  | — |  |  | (42.4) |  |  | — |
Non-deductible goodwill impairment charge |  | 5.2 |  |  | — |  |  | — |
Other (2) |  | 0.3 |  |  | (5.0) |  |  | 2.5 |
Effective tax rate |  | 28.6 | % |  | 10.4 | % |  | 33.1 | %
(1) Foreign operations include the net impact of changes to valuation allowances, the cost of inclusion of foreign income in the U.S. net of foreign taxes, the impact of foreign tax rate differences from the U.S. Federal rate and permanent items related to foreign operations. (2) In the year ended December 31, 2021, the impact of “Other” on the effective tax rate was disproportionately high compared to 2020 and 2022 due to the low income (loss) from continuing operations before income tax provision (benefit) in 2021. For 2021, “Other” is primarily composed of (3.6)% of U.S. Federal tax credits and (1.8)% of U.S. Federal tax permanent adjustments. Components of the Net Deferred Tax Asset or Liability The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability were as follows:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021
Deferred tax asset |  |  |  |
Net operating loss and other tax attribute carryforwards |  | $ | 40 |  |  | $ | 69 |
Accrued expenses |  | 55 |  |  | 63 |
Pension and other retirement obligations |  | 6 |  |  | (6) |
Other |  | 16 |  |  | 41 |
Total deferred tax asset |  | 117 |  |  | 167 |
Valuation allowance |  | (35) |  |  | (35) |
Total deferred tax asset, net |  | 82 |  |  | 132 |
Deferred tax liability |  |  |  |
Intangible assets |  | (112) |  |  | (129) |
Property and equipment |  | (261) |  |  | (223) |
Other |  | (24) |  |  | (27) |
Total deferred tax liability |  | (397) |  |  | (379) |
Net deferred tax liability |  | $ | (315) |  |  | $ | (247) |
The deferred tax asset and deferred tax liability above are reflected on our Consolidated Balance Sheets as follows:
|  | December 31,
(In millions) |  | 2022 |  | 2021
Other long-term assets |  | $ | 4 |  |  | $ | — |
Deferred tax liability |  | (319) |  |  | (247) |
Net deferred tax liability |  | $ | (315) |  |  | $ | (247) |
Operating Loss and Tax Credit Carryforwards Our operating loss and tax credit carryforwards were as follows:
|  |  |  | December 31,
(In millions) |  | Expiration Date |  | 2022 |  | 2021
Federal long-term capital loss carryforwards |  |  |  | — |  |  | 126 |
Tax effect (before federal benefit) of state net operating losses |  | Various times starting in 2023 (1) |  | 26 |  |  | 20 |
Federal tax credit carryforwards |  | Various times starting in 2032 |  | 1 |  |  | 1 |
State tax credit carryforward |  | Various times starting in 2023 (1) |  | 2 |  |  | 2 |
Foreign net operating losses available to offset future taxable income |  | Various times starting in 2023 (1) |  | 69 |  |  | 89 |
(1) Some credits and losses have unlimited carryforward periods. Valuation Allowance We established a valuation allowance for some of our deferred tax assets, as it is more likely than not that these assets will not be realized in the foreseeable future. We concluded that the remaining deferred tax assets will more likely than not be realized, though this is not assured, and as such no valuation allowance has been provided on these assets. The balances and activity related to our valuation allowance were as follows:
(In millions) |  | Beginning Balance |  | Additions |  | Reductions |  | Ending Balance
Year Ended December 31, 2022 |  | $ | 35 |  |  | $ | 1 |  |  | $ | (1) |  |  | $ | 35 |
Year Ended December 31, 2021 |  | 36 |  |  | 43 |  |  | (44) |  |  | 35 |
Year Ended December 31, 2020 |  | 28 |  |  | 9 |  |  | (1) |  |  | 36 |
Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
Beginning balance |  | $ | 7 |  |  | $ | 9 |  |  | $ | 5 |
Additions for tax positions of prior years |  | 1 |  |  | — |  |  | 5 |
Reductions for tax positions of prior years |  | (1) |  |  | (1) |  |  | (1) |
Settlements with tax authorities |  | — |  |  | (1) |  |  | — |
Reductions due to the statute of limitations |  | (1) |  |  | — |  |  | — |
Ending balance |  | $ | 6 |  |  | $ | 7 |  |  | $ | 9 |
Interest and penalties |  | 3 |  |  | 2 |  |  | 1 |
Gross unrecognized tax benefits |  | $ | 9 |  |  | $ | 9 |  |  | $ | 10 |
Total unrecognized tax benefits that, if recognized, would impact the effective income tax rate as of the end of the year |  | $ | 6 |  |  | $ | 7 |  |  | $ | 9 |
We could reflect a reduction to unrecognized tax benefits of up to $4 million over the next 12 months due to the statute of limitations lapsing on positions or because tax positions are sustained on audit. We are subject to taxation in the United States and various states and foreign jurisdictions. As of December 31, 2022, we have no tax years under examination by the IRS. We have various U.S. state and local examinations and non-U.S. examinations in process. The U.S. federal tax returns after 2008, state and local returns after 2016, and non-U.S. returns after 2011 are open under relevant statutes of limitations and are subject to audit.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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