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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Domestic and Foreign Components of Income (Loss) Before 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 | )
Components of the Provision (Benefit) for Income Taxes | 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 |
Reconciliation Between Effective Tax Rate | 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.
Significant Components of Deferred Tax Assets and Liabilities | 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 | )

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