XML 32 R16.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 9. Income Taxes The domestic and foreign components of income (loss) before income taxes were as follows (in millions):
| Year Ended December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
United States | $ | (9 | ) |  | $ | (289 | ) |  | $ | (12 | )
Foreign |  | 21 |  |  |  | (141 | ) |  |  | (81 | )
Income (loss) before income taxes | $ | 12 |  |  | $ | (430 | ) |  | $ | (93 | )
The provision (benefit) for income taxes for 2021, 2020 and 2019 consisted of the following (in millions):
| Year Ended December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
U.S. Federal: |  |  |  |  |  |  |  |
Current | $ | — |  |  | $ | — |  |  | $ | — |
Deferred |  | (1 | ) |  |  | — |  |  |  | — |
|  | (1 | ) |  |  | — |  |  |  | — |
U.S. State: |  |  |  |  |  |  |  |
Current |  | — |  |  |  | — |  |  |  | 1 |
Deferred |  | — |  |  |  | — |  |  |  | — |
|  | — |  |  |  | — |  |  |  | 1 |
Foreign: |  |  |  |  |  |  |  |
Current |  | 7 |  |  |  | 1 |  |  |  | 5 |
Deferred |  | 1 |  |  |  | (4 | ) |  |  | (2 | )
|  | 8 |  |  |  | (3 | ) |  |  | 3 |
Income tax provision (benefit) | $ | 7 |  |  | $ | (3 | ) |  | $ | 4 |
The reconciliation between the Company’s effective tax rate on income (loss) from continuing operations and the statutory tax rate is as follows (in millions):
| Year Ended December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
Income tax provision (benefit) at federal statutory rate | $ | 3 |  |  | $ | (90 | ) |  | $ | (19 | )
Foreign tax rate differential |  | 2 |  |  |  | 1 |  |  |  | 2 |
State income tax provision (benefit), net of federal benefit |  | (1 | ) |  |  | (4 | ) |  |  | — |
Nondeductible expenses |  | — |  |  |  | 2 |  |  |  | 3 |
Investment in subsidiaries |  | — |  |  |  | — |  |  |  | (9 | )
Nondeductible goodwill impairment |  | — |  |  |  | 25 |  |  |  | 16 |
Change in valuation allowance |  | 2 |  |  |  | 61 |  |  |  | 9 |
Other |  | 1 |  |  |  | 2 |  |  |  | 2 |
Income tax provision (benefit) | $ | 7 |  |  | $ | (3 | ) |  | $ | 4 |
Effective tax rate |  | 54.8 | % |  |  | 0.6 | % |  |  | (4.4 | )%
In general, the effective tax rate differs from the U.S. statutory rate due to recurring items, such as differing tax rates on income earned in foreign jurisdictions, nondeductible expenses, state income taxes and the change in valuation allowance recorded against deferred tax assets. For the year ended December 31, 2021, the effective tax rate was primarily driven by the low level of consolidated pre-tax income and the recognition of tax expense from earnings in Canada, which was not able to be offset by benefits recognized on losses in other jurisdictions. For the year ended December 31, 2020, the effective tax rate was impacted by nondeductible goodwill impairment. For the year ended December 31, 2019, the effective tax rate was also impacted by nondeductible goodwill impairment and recognition of deferred taxes related to outside basis differences in subsidiaries classified as held for sale. Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions):
| December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowances and operating liabilities | $ | 6 |  |  | $ | 3 |  |  | $ | 5 |
Net operating loss carryforwards |  | 92 |  |  |  | 79 |  |  |  | 56 |
Foreign tax credit carryforwards |  | 7 |  |  |  | 7 |  |  |  | 7 |
Allowance for doubtful accounts |  | 4 |  |  |  | 5 |  |  |  | 2 |
Inventory reserve |  | 10 |  |  |  | 13 |  |  |  | 9 |
Stock-based compensation |  | 5 |  |  |  | 6 |  |  |  | 8 |
Intangible assets |  | 57 |  |  |  | 66 |  |  |  | 28 |
Assets held-for-sale |  | — |  |  |  | — |  |  |  | 4 |
Investment in subsidiaries |  | — |  |  |  | — |  |  |  | 9 |
Capital loss carryforward |  | 10 |  |  |  | 11 |  |  |  | — |
Book over tax depreciation |  | 5 |  |  |  | 5 |  |  |  | 4 |
Other |  | 5 |  |  |  | 5 |  |  |  | 4 |
Total deferred tax assets | $ | 201 |  |  | $ | 200 |  |  | $ | 136 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Total deferred tax liabilities | $ | — |  |  | $ | — |  |  | $ | — |
Net deferred tax assets before valuation allowance |  | 201 |  |  |  | 200 |  |  |  | 136 |
Valuation allowance |  | (201 | ) |  |  | (199 | ) |  |  | (138 | )
Net deferred tax assets (liabilities) | $ | — |  |  | $ | 1 |  |  | $ | (2 | )
The Company records a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. If the Company was to determine that it would be able to realize the deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. The Company remains in a three year cumulative loss position at the end of 2021. As a result, management believes that it is not more-likely-than-not that the Company would be able to realize the benefits of its deferred tax assets in the U.S., Canada and other foreign jurisdictions and accordingly recognized a valuation allowance for the year ended December 31, 2021. The change during the year in the valuation allowance was nil in the U.S. and $2 million in other foreign jurisdictions. There are no uncertain tax positions as of any of the periods presented. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts are classified as a component of income tax provision (benefit) in the financial statements consistent with the Company’s policy. For the year ended December 31, 2021, the Company did not record any income tax expense for interest and penalties related to uncertain tax positions. The Company is subject to taxation in the U.S., various states and foreign jurisdictions. The Company has significant operations in the U.S. and Canada and to a lesser extent in various other international jurisdictions. Tax years that remain subject to examination vary by legal entity but are generally open in the U.S. for the tax years ending after 2017 and outside the U.S. for the tax years ending after 2015. In the U.S., the Company has $366 million of federal net operating loss carryforwards as of December 31, 2021, of which $218 million will expire between 2036 through 2037 and $148 million have no expiration. The potential associated tax benefit of $77 million has been reduced by a $77 million valuation allowance. The Company has $200 million of state net operating loss carryforwards as of December 31, 2021, which will expire between 2022 through 2041, with the majority expiring after 2034. The potential tax benefit of $11 million has been reduced by a $11 million valuation allowance. Outside the U.S., the Company has $19 million of net operating loss carryforwards as of December 31, 2021, of which $13 million have no expiration and $6 million will expire between 2022 and 2031. The potential tax benefit of $4 million has been reduced by a $4 million valuation allowance. In addition to a reduction in future income tax expense, future income tax payments will also be reduced in the event the Company ultimately realizes the benefit of these net operating losses. As of December 31, 2021, the Company has $7 million of excess foreign tax credits in the U.S. The foreign tax credits will expire between 2024 and 2027. The potential tax benefit of $7 million has been reduced by a $7 million valuation allowance. In addition to future income tax expense, future income tax payments will also be reduced in the event the Company ultimately realizes the benefit of these foreign tax credits. As of December 31, 2021, the amount of undistributed earnings of foreign subsidiaries was approximately $1 million. The Company has not recorded deferred income taxes on undistributed foreign earnings that it considers to be indefinitely reinvested. The Company makes a determination each period whether to indefinitely reinvest these earnings. If, as a result of these reassessments, the Company distributes these earnings in the future, additional tax liabilities may result, offset by any available foreign tax credits. The Company has not recorded deferred income taxes on other outside basis differences inherent in the Company’s foreign subsidiaries that it considers to be indefinitely reinvested, as such determination is not practicable. Because of the number of tax jurisdictions in which the Company operates, its effective tax rate can fluctuate as operations and the local country tax rates fluctuate. The Company is also subject to audits by federal, state and foreign jurisdictions which may result in proposed assessments. The Company’s future tax provision will reflect any favorable or unfavorable adjustments to its estimated tax liabilities when resolved. The Company is unable to predict the outcome of these matters. However, the Company believes that none of these matters will have a material adverse effect on the results of operations or financial position of the Company.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration