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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of income tax expense (benefit) included in Consolidated Statement of Earnings from continuing operations | The income tax expense (benefit) components recognized in Cont Ops follow:
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal (a) | $ | 1 |  |  | $ | 1 |  |  | $ | (122) |
Foreign | 148 |  |  | 47 |  |  | 141 |
State and local | 5 |  |  | (5) |  |  | 5 |
Total current | 154 |  |  | 43 |  |  | 24 |
Deferred: |  |  |  |  |
Federal | — |  |  | — |  |  | 18 |
Foreign | 17 |  |  | (23) |  |  | (19) |
State and local | — |  |  | — |  |  | — |
Total deferred | 17 |  |  | (23) |  |  | (1) |
Total income tax expense | $ | 171 |  |  | $ | 20 |  |  | $ | 23 |
(a) We have filed a claim with the IRS and expect to receive a refund of $145 million in 2023, of which $72 million relates to the CARES Act.
Schedule of reconciliation of U.S. statutory federal income tax expense to income tax expense | A reconciliation of U.S. statutory federal income tax expense (benefit) to income tax expense (benefit) from Cont Ops follows:
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
U.S. statutory federal tax expense (benefit) | $ | 51 |  |  | $ | (73) |  |  | $ | (58) |
Increase (decrease) in taxes resulting from: |  |  |  |  |
State and local income taxes | — |  |  | 12 |  |  | (12) |
Goodwill Impairment | 10 |  |  | 36 |  |  | — |
NCI | 15 |  |  | (7) |  |  | (9) |
Foreign tax differential, net | (106) |  |  | (11) |  |  | 38 |
Valuation allowance, net | 194 |  |  | 103 |  |  | 167 |
Other changes to uncertain tax positions | — |  |  | 1 |  |  | 7 |
Stranded tax effects from AOCI | — |  |  | (52) |  |  | — |
CARES Act benefit | 2 |  |  | 2 |  |  | (125) |
Other, net | 5 |  |  | 9 |  |  | 15 |
Total income tax expense | $ | 171 |  |  | $ | 20 |  |  | $ | 23 |
Schedule of tax effects of significant temporary differences giving rise to deferred tax assets and liabilities | The tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows:
| December 31,
(in millions) | 2022 |  | 2021
Deferred tax assets: |  |  |
Accrued liabilities not currently deductible: |  |  |
Employee compensation and benefits | $ | 107 |  |  | $ | 138 |
Project and non-project reserves | 33 |  |  | 68 |
Net operating loss carryforward | 397 |  |  | 347 |
Tax basis of investment in excess of book basis, net | 66 |  |  | 144 |
U.S. foreign tax credit carryforward | 567 |  |  | 456 |
AOCI | 21 |  |  | 27 |
Other | 57 |  |  | 27 |
Total deferred tax assets | 1,248 |  |  | 1,207 |
Valuation allowance | (1,211) |  |  | (1,115) |
Deferred tax assets, net | $ | 37 |  |  | $ | 92 |
Deferred tax liabilities: |  |  |
Book basis of property and equipment in excess of tax basis | (10) |  |  | (31) |
Dividend withholding on unremitted non-U.S. earnings | (46) |  |  | (55) |
Other | (20) |  |  | (22) |
Total deferred tax liabilities | (76) |  |  | (108) |
Deferred tax assets, net of deferred tax liabilities | $ | (39) |  |  | $ | (16) |
Summary of Tax Credit Carryforwards | As of December 31, 2022, tax credit carryforwards, principally federal, and tax loss carryforwards, principally federal, state, and foreign, were as follows:
(in millions) | Federal FTC |  | Federal NOLs |  | State NOLs |  | Foreign NOLs
Expiration periods: |  |  |  |  |  |  |
2023-2027 | $ | 21 |  |  | $ | — |  |  | $ | 8 |  |  | $ | 25 |
2028-2032 | 462 |  |  | — |  |  | 68 |  |  | 54 |
2033-2042 | 84 |  |  | — |  |  | 266 |  |  | 5 |
Indefinite | — |  |  | 217 |  |  | 314 |  |  | 1,171 |
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits including interest and penalties | A summary of unrecognized tax benefits follows:
(in millions) | 2022 |  | 2021
Balance at beginning of year | $ | 48 |  |  | $ | 48 |
Change in tax positions of prior years | 1 |  |  | — |
Change in tax positions of current year | — |  |  | — |
Reduction in tax positions for statute expirations | — |  |  | — |
Reduction in tax positions for audit settlements | — |  |  | — |
Balance at end of year | $ | 49 |  |  | $ | 48 |
Schedule of U.S. and foreign earnings from continuing operations before taxes | U.S. and foreign earnings (loss) from Cont Ops before taxes are as follows:
| Year Ended December 31,
(in millions) | 2022 |  | 2021 |  | 2020
United States | $ | (465) |  |  | $ | (394) |  |  | $ | (269) |
Foreign | 709 |  |  | 48 |  |  | (9) |
Total | $ | 244 |  |  | $ | (346) |  |  | $ | (278) |

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