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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On December 22, 2017 the Tax Act made substantial changes to corporate income tax laws. Among the key provisions were a U.S. corporate tax rate reduction from 35% to 21% effective for tax years beginning January 1, 2018 and a one-time transition tax on the deemed repatriation of cumulative earnings from foreign subsidiaries and changes to U.S. taxation of foreign earnings from a worldwide to a territorial tax system effective for tax years beginning January 1, 2018. The Company recognized the effects of the Tax Act in its Consolidated Financial Statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of FASB Accounting Standards Codification Topic 740, Income Taxes, in the reporting period that the Tax Act was signed into law. In 2017 the Company recorded a provisional income tax benefit of $317 million related to the remeasurement of its net deferred income tax liabilities as a result of the reduced corporate tax rate, and a provisional tax expense of $104 million for the one-time transition tax on the deemed repatriation of cumulative foreign subsidiary earnings. The Company completed the accounting for the effects of the Tax Act during 2018 and recorded an additional income tax expense of $30 million for the one-time transition tax on the deemed repatriation of foreign earnings. The provision for (benefit from) income taxes consists of the following:
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Current |  |  |  |  |
| Federal | $ | (5) |  |  | $ | (3) |  |  | $ | (7) |
| State | 21 |  |  | 41 |  |  | 36 |
| Foreign | 29 |  |  | 50 |  |  | 59 |
| Current income tax provision | 45 |  |  | 88 |  |  | 88 |
Deferred |  |  |  |  |
| Federal | (104) |  |  | 41 |  |  | 63 |
| State | (90) |  |  | (37) |  |  | (39) |
| Foreign | (123) |  |  | (107) |  |  | (10) |
| Deferred income tax provision | (317) |  |  | (103) |  |  | 14 |
Provision for (benefit from) income taxes | $ | (272) |  |  | $ | (15) |  |  | $ | 102 |
Pretax income for domestic and foreign operations consists of the following:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
United States | $ | (590) |  |  | $ | 125 |  |  | $ | 114 |
Foreign | (366) |  |  | 162 |  |  | 153 |
Pretax income (loss) | $ | (956) |  |  | $ | 287 |  |  | $ | 267 |
Deferred income tax assets and liabilities are comprised of the following:
|  | As of December 31,
|  | 2020 |  | 2019
Deferred income tax assets: |  |  |
| Net tax loss carryforwards | $ | 1,146 |  |  | $ | 1,645 |
| Long-term operating lease liabilities | 657 |  |  | 678 |
| Accrued liabilities and deferred revenue | 237 |  |  | 236 |
| Tax credits | 17 |  |  | 20 |
| Depreciation and amortization | 3 |  |  | 17 |
| Provision for doubtful accounts | 8 |  |  | 8 |
| Other | 110 |  |  | 75 |
| Valuation allowance (a) | (204) |  |  | (214) |
Deferred income tax assets | 1,974 |  |  | 2,465 |
Deferred income tax liabilities: |  |  |
| Operating lease right-of-use assets | 649 |  |  | 672 |
| Depreciation and amortization | 105 |  |  | 108 |
| Prepaid expenses | 8 |  |  | 17 |
| Other | 14 |  |  | 6 |
Deferred income tax liabilities | 776 |  |  | 803 |
Deferred income tax assets, net | $ | 1,198 |  |  | $ | 1,662 |
__________ (a) The valuation allowance of $204 million at December 31, 2020 relates to tax loss carryforwards and certain deferred tax assets of $195 million and $9 million, respectively. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. The valuation allowance of $214 million at December 31, 2019 relates to tax loss carryforwards and certain deferred tax assets of $192 million and $22 million, respectively. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. Deferred income tax assets and liabilities related to vehicle programs are comprised of the following:
| As of December 31,
| 2020 |  | 2019
Deferred income tax assets: |  |  |
Depreciation and amortization | $ | 62 |  |  | $ | 54 |
Other | 27 |  |  | 48 |
Deferred income tax assets | 89 |  |  | 102 |
Deferred income tax liabilities: |  |  |
Depreciation and amortization | 1,445 |  |  | 2,243 |
Other | 27 |  |  | 48 |
Deferred income tax liabilities | 1,472 |  |  | 2,291 |
Deferred income tax liabilities under vehicle programs, net | $ | 1,383 |  |  | $ | 2,189 |
At December 31, 2020, the Company had U.S. federal net operating loss carryforwards of approximately $3.5 billion. The majority of the net operating loss carryforwards have an indefinite utilization period pursuant to the Tax Act and a significant remaining portion expires by 2031. Such net operating loss carryforwards are primarily related to accelerated depreciation of the Company’s U.S. vehicles. Currently, the Company does not record valuation allowances on the majority of its U.S. federal tax loss carryforwards as there are adequate deferred tax liabilities that could be realized within the carryforward period. At December 31, 2020, the Company had foreign net operating loss carryforwards of approximately $1.2 billion with an indefinite utilization period. At December 31, 2020, the Company had undistributed earnings of certain foreign subsidiaries of approximately $0.9 billion that it has indefinitely reinvested, and on which it has not recognized deferred taxes. Estimating the amount of potential tax is not practicable because of the complexity and variety of assumptions necessary to compute the tax. The reconciliation between the U.S. federal income tax statutory rate and the Company’s effective income tax rate is as follows:
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
U.S. federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Adjustments to reconcile to the effective rate: |  |  |  |  |
| State and local income taxes, net of federal tax benefits | 4.8 |  |  | (1.7) |  |  | 5.5 |
| Changes in valuation allowances | — |  |  | (26.9) |  |  | 6.3 |
| Taxes on foreign operations at rates different than U.S. federal statutory rates | 3.1 |  |  | 3.4 |  |  | (5.2) |
| Stock-based compensation | (0.1) |  |  | — |  |  | (0.8) |
| Tax Act (benefit) expense | — |  |  | — |  |  | 11.2 |
| Other non-deductible (non-taxable) items | (0.4) |  |  | (1.4) |  |  | 1.1 |
| Other | — |  |  | 0.4 |  |  | (0.9) |
|  | 28.4 | % |  | (5.2) | % |  | 38.2 | %
The following is a tabular reconciliation of the gross amount of unrecognized tax benefits for the year:
|  | 2020 |  | 2019 |  | 2018
Balance, January 1 | $ | 54 |  |  | $ | 61 |  |  | $ | 63 |
| Additions for tax positions related to current year | 4 |  |  | 6 |  |  | 8 |
| Reductions for tax positions for prior years | (1) |  |  | (8) |  |  | (6) |
| Settlements | (3) |  |  | (4) |  |  | (3) |
| Statute of limitations | — |  |  | (1) |  |  | (1) |
| Foreign currency translation | 3 |  |  | — |  |  | — |
Balance, December 31 | $ | 57 |  |  | $ | 54 |  |  | $ | 61 |
The Company does not anticipate that total unrecognized tax benefits will change significantly in 2021. The Company is subject to taxation in the United States and various foreign jurisdictions. As of December 31, 2020, the 2017 through 2019 tax years generally remain subject to examination by the federal tax authorities. The 2014 through 2019 tax years generally remain subject to examination by various state tax authorities. In significant foreign jurisdictions, the 2013 through 2019 tax years generally remain subject to examination by their respective tax authorities. Substantially all of the gross amount of the unrecognized tax benefits at December 31, 2020, 2019 and 2018, if recognized, would affect the Company’s provision for, or benefit from, income taxes. As of December 31, 2020, the Company’s unrecognized tax benefits were offset by tax loss carryforwards and other deferred tax assets in the amount of $38 million. The following table presents unrecognized tax benefits:
| As of December 31,
| 2020 |  | 2019
Unrecognized tax benefit in non-current income taxes payable (a) | $ | 24 |  |  | $ | 57 |
Accrued interest payable on potential tax liabilities (b) | 29 |  |  | 27 |
__________ (a)Pursuant to the agreements governing the disposition of certain subsidiaries in 2006, the Company is entitled to indemnification for certain pre-disposition tax contingencies. As of December 31, 2020 and 2019, $13 million, respectively, of unrecognized tax benefits are related to tax contingencies for which the Company believes it is entitled to indemnification. (b)The Company recognizes potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on the accompanying Consolidated Statements of Operations. Penalties incurred during the years ended December 31, 2020, 2019 and 2018, were not significant and were recognized as a component of the provision for income taxes.

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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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