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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Before Income Taxes

For the years ended December 31, income (loss) before income taxes consisted of the following: 

In millions			2022						2021						2020
Income (loss) before income taxes
United States			$	17					$	67					$	(41)
Foreign			50						125						17
Total income (loss) before income taxes			$	67					$	192					$	(24)

Income Tax Expense

For the years ended December 31, income tax expense (benefit) consisted of the following:

In millions			2022						2021						2020
Income tax expense (benefit)
Current
Federal			$	29					$	(1)					$	(45)
State and local			6						5						1
Foreign			25						27						9
Deferred
Federal			(21)						3						34
State and local			(3)						1						6
Foreign			(2)						10						(158)
Total income tax expense (benefit)			$	34					$	45					$	(153)
Effective income tax rate			50.7		%				23.4		%				637.5		%

The Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate

The following table presents the principal components of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:

			2022						2021						2020
Income tax expense at the U.S. federal tax rate			21.0		%				21.0		%				21.0		%
Foreign income tax differential			13.0		%				2.8		%				(20.8)		%
U.S. tax on foreign earnings			2.8		%				0.3		%				(16.7)		%
State and local income taxes			(4.2)		%				(1.3)		%				25.0		%
U.S. permanent book/tax differences			4.8		%				(2.3)		%				(4.2)		%
U.S. research and development tax credits			(10.4)		%				(2.6)		%				25.0		%
Change in valuation allowance			18.7		%				3.2		%				(25.0)		%
Tax impact of NOL carry-back under the CARES act.			—		%				—		%				79.2		%
Tax impact of stock compensation			3.6		%				0.8		%				(66.7)		%
Deferred tax impact from intra-entity IP transfer			—		%				—		%				654.2		%
Tax Impact of uncertain tax positions			1.5		%				2.0		%				(29.2)		%
Other, net			(0.1)		%				(0.5)		%				(4.3)		%
Effective income tax rate			50.7		%				23.4		%				637.5		%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:

In millions			2022						2021
Deferred income tax assets
Employee pensions and other liabilities			$	47					$	65
Other balance sheet reserves and allowances			19						8
Operating lease liabilities			5						7
Tax loss and credit carryforwards			99						86
Deferred revenue			6						6
Intangibles and capitalized software			172						159
Total deferred income tax assets			348						331
Valuation allowance			(69)						(58)
Net deferred income tax assets			279						273
Deferred income tax liabilities
Right of use assets - operating lease			3						6
Property and equipment			35						41
Other			35						31
Total deferred income tax liabilities			73						78
Total net deferred income tax assets			$	206					$	195

Liability Related to Uncertain Tax Positions

Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:

In millions			2022						2021
Balance at January 1			$	43					$	39
Gross increases for prior period tax positions			1						5
Gross increases for current period tax positions			3						3
Decreases due to the lapse of applicable statute of limitations			(3)						(4)
Decreases relating to settlements with taxing authorities			(3)						—
Balance at December 31			$	41					$	43

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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