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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense (benefit) components recognized in Cont Ops follow:
 Year Ended December 31,
(in millions)202220212020
Current:
Federal (a)
$1 $1 $(122)
Foreign148 47 141 
State and local5 (5)5 
Total current154 43 24 
Deferred:
Federal— — 18 
Foreign17 (23)(19)
State and local— — — 
Total deferred17 (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.

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)202220212020
U.S. statutory federal tax expense (benefit)$51 $(73)$(58)
Increase (decrease) in taxes resulting from:
State and local income taxes— 12 (12)
Goodwill Impairment10 36 — 
NCI15 (7)(9)
Foreign tax differential, net(106)(11)38 
Valuation allowance, net194 103 167 
Other changes to uncertain tax positions— 1 7 
Stranded tax effects from AOCI— (52)— 
CARES Act benefit2 2 (125)
Other, net5 9 15 
Total income tax expense$171 $20 $23 

Deferred taxes reflect the tax effects of differences between the amounts recorded as assets and liabilities for financial reporting purposes and the amounts recognized for income tax purposes. The tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows:
 December 31,
(in millions)20222021
Deferred tax assets:
Accrued liabilities not currently deductible:
Employee compensation and benefits$107 $138 
Project and non-project reserves33 68 
Net operating loss carryforward397 347 
Tax basis of investment in excess of book basis, net66 144 
U.S. foreign tax credit carryforward567 456 
AOCI21 27 
Other57 27 
Total deferred tax assets1,248 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)

As of December 31, 2022, we are indefinitely reinvested only with respect to unremitted earnings required to meet our working capital and long-term investment needs in the foreign jurisdictions within which we operate. Beyond those limits, we
expect current earnings to be available for distribution. Deferred tax liabilities of approximately $40 million have not been recorded with respect to unremitted earnings that are considered indefinitely reinvested, primarily associated with foreign withholding and income taxes that would be due upon remittance. We have no intention of initiating any actions that would lead to taxation of the earnings deemed indefinitely reinvested.

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 FTCFederal NOLsState NOLsForeign NOLs
Expiration periods:
2023-2027$21 $— $8 $25 
2028-2032462 — 68 54 
2033-204284 — 266 5 
Indefinite— 217 314 1,171 
During 2022 and 2021, we were in a three-year cumulative loss on a consolidated, jurisdictional basis in Australia, the Netherlands, the U.K. and the U.S. Such cumulative loss constitutes significant negative evidence (with regards to future taxable income) for assessing likelihood of realization. We also considered positive evidence but concluded it did not outweigh this significant negative evidence of a three-year cumulative loss. Accordingly, we recognized non-cash charges to tax expense of $50 million and $10 million to record a valuation allowance against net U.S. deferred tax assets and $120 million and $42 million against certain net foreign deferred tax assets during 2022 and 2021, respectively. During 2022, our valuation allowance was also impacted by $74 million on an earnings-neutral basis primarily due to the NuScale reverse recapitalization.

In the normal course of business, we are subject to examination by taxing authorities worldwide, including such major jurisdictions as Australia, Canada, Chile, the Netherlands, the United Kingdom, and the United States. Although we believe our reserves for our tax positions are reasonable, the outcome of tax audits could be materially different, both favorably and unfavorably. With a few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2012.

A summary of unrecognized tax benefits follows:
(in millions)20222021
Balance at beginning of year$48 $48 
Change in tax positions of prior years1 — 
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 

If recognized, the total amount of unrecognized tax benefits as of December 31, 2022 and 2021, would favorably impact the effective tax rates by $31 million and $30 million, respectively. We had $15 million and $13 million of accrued interest and penalties as of December 31, 2022 and 2021, respectively. We do not anticipate any significant changes to the unrecognized tax benefits within the next twelve months.

U.S. and foreign earnings (loss) from Cont Ops before taxes are as follows:

 Year Ended December 31,
(in millions)202220212020
United States$(465)$(394)$(269)
Foreign709 48 (9)
Total$244 $(346)$(278)