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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Earnings or losses before income taxes by geographic region | The following table presents the components of our Income before income taxes and noncontrolling interests for the last three fiscal years:
($ in millions) | 2024 |  | 2023 |  | 2022
United States | $ | 281 |  |  | $ | 419 |  |  | $ | 508 |
Non-U.S. jurisdictions | 25 |  |  | (21) |  |  | 74 |
| $ | 306 |  |  | $ | 398 |  |  | $ | 582 |
Provision for or benefit from income taxes | Our (provision for) benefit from income taxes consisted of:
($ in millions) | 2024 |  | 2023 |  | 2022
Current | – U.S. Federal | $ | (28) |  |  | $ | (123) |  |  | $ | (91) |
| – U.S. State | (20) |  |  | (21) |  |  | (23) |
| – Non-U.S. | (7) |  |  | (62) |  |  | 5 |
|  | (55) |  |  | (206) |  |  | (109) |
Deferred | – U.S. Federal | (23) |  |  | 27 |  |  | (13) |
| – U.S. State | (15) |  |  | 12 |  |  | (26) |
| – Non-U.S. | 4 |  |  | 21 |  |  | (43) |
|  | (34) |  |  | 60 |  |  | (82) |
|  | $ | (89) |  |  | $ | (146) |  |  | $ | (191) |
Reconciliation of US statutory income tax rate to our effective income tax rate | The following table reconciles the U.S. statutory income tax rate to our effective income tax rate:
| 2024 |  | 2023 |  | 2022
U.S. statutory income tax rate | 21.0% |  | 21.0% |  | 21.0%
U.S. state income taxes, net of U.S. federal tax benefit | 4.6 |  | 4.5 |  | 5.0
Share-based compensation, net of Section 162(m) limitation | 0.8 |  | 0.3 |  | (0.2)
Other permanent differences(1) | 1.0 |  | (3.0) |  | 1.5
Tax rate changes | 0.3 |  | (0.8) |  | 2.8
Non-U.S. income | 9.4 |  | 2.7 |  | 5.5
Tax credits | (0.8) |  | (0.6) |  | (0.2)
Unrecognized tax benefits | (6.3) |  | 5.5 |  | (2.7)
Change in valuation allowance | (2.6) |  | 7.1 |  | 1.0
Other items | 1.6 |  | (0.2) |  | (0.8)
Effective rate | 29.0% |  | 36.5% |  | 32.9%
(1)The 2024 permanent differences are primarily related to non-deductible interest, other expenses and foreign taxes partially offset by non-taxable income. The 2023 permanent differences are primarily related to non-taxable income and foreign taxes deducted in the U.S. The 2022 permanent differences primarily relate to non-deductible interest.
Components of deferred tax assets and liabilities | The following table presents the significant components of our deferred tax assets and liabilities:
($ in millions) | At Year-End 2024 |  | At Year-End 2023
Deferred Tax Assets |  |  |
Inventory | $ | 74 |  |  | $ | 193 |
Reserves | 166 |  |  | 139 |
Convertible debt | 24 |  |  | 34 |
Deferred compensation | 42 |  |  | 35 |
Property and equipment | 73 |  |  | 56 |
Non-cash compensation | 15 |  |  | 15 |
Net operating loss and capital loss carryforwards | 143 |  |  | 153 |
Accrued expenses | 30 |  |  | 21 |
Tax credits | 30 |  |  | 27 |
Right-of-use asset | 50 |  |  | 50 |
Other, net | 31 |  |  | 25 |
Deferred tax assets | 678 |  |  | 748 |
Less valuation allowance | (163) |  |  | (179) |
Net deferred tax assets | 515 |  |  | 569 |
Deferred Tax Liabilities |  |  |
Long lived intangible assets | (189) |  |  | (199) |
Deferred sales of VOIs | (549) |  |  | (578) |
Right-of-use liability | (43) |  |  | (44) |
Other, net | (41) |  |  | (14) |
Deferred tax liabilities | (822) |  |  | (835) |
Total net deferred tax liabilities | $ | (307) |  |  | $ | (266) |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) is as follows:
($ in millions) | 2024 |  | 2023 |  | 2022
Unrecognized tax benefits at beginning of year | $ | 106 |  |  | $ | 25 |  |  | $ | 26 |
Increases related to tax positions taken during a prior period | 8 |  |  | 87 |  |  | 3 |
Decreases related to tax positions taken during a prior period | (82) |  |  | (6) |  |  | (4) |
Decreases as a result of a lapse of the applicable statute of limitations | (9) |  |  | — |  |  | — |
Unrecognized tax benefits at end of year | $ | 23 |  |  | $ | 106 |  |  | $ | 25 |

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