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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of pre-tax income (loss) for domestic and foreign operations | The components of pretax income for domestic and foreign operations consisted of the following:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Domestic | $ | 486 |  |  | $ | (449) |  |  | $ | (171) |
Foreign | (3) |  |  | (11) |  |  | — |
Pretax income (loss) | $ | 483 |  |  | $ | (460) |  |  | $ | (171) |
Schedule of income tax provision | The components of income tax expense (benefit) consisted of the following:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 29 |  |  | $ | (5) |  |  | $ | 3 |
State | 30 |  |  | 13 |  |  | 7 |
Foreign | 2 |  |  | 2 |  |  | 1 |
Total current | 61 |  |  | 10 |  |  | 11 |
Deferred: |  |  |  |  |
Federal | 70 |  |  | (66) |  |  | 4 |
State | 2 |  |  | (48) |  |  | (1) |
Foreign | — |  |  | — |  |  | — |
Total deferred | 72 |  |  | (114) |  |  | 3 |
Income tax expense (benefit) | $ | 133 |  |  | $ | (104) |  |  | $ | 14 |
Schedule of effective income tax rate | A reconciliation of the Company’s effective income tax rate at the U.S. federal statutory rate of 21% to the actual expense was as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Federal statutory rate | 21 | % |  | 21 | % |  | 21 | %
State and local income taxes, net of federal tax benefits | 6 |  |  | 3 |  |  | 6 |
Discontinued operations—establishment/reversal of deferred tax liability (a) | — |  |  | 10 |  |  | (26) |
Non-deductible equity compensation | 1 |  |  | (2) |  |  | (4) |
Non-deductible executive compensation | 1 |  |  | (1) |  |  | (1) |
Goodwill impairment | — |  |  | (7) |  |  | (3) |
Meals & entertainment | — |  |  | — |  |  | (1) |
Net change in valuation allowance | — |  |  | (1) |  |  | — |
Other permanent differences | (1) |  |  | — |  |  | — |
Effective tax rate | 28 | % |  | 23 | % |  | (8) | %
_______________ (a)This item reflects the tax impact from the 2019 recognition of gain on the pending sale of Cartus Relocation Services (previously recorded in discontinued operations) and the 2020 de-recognition of that gain.
Schedule of deferred income tax assets and liabilities | Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the deferred income tax assets and liabilities are as follows:
| December 31,
| 2021 |  | 2020
Deferred income tax assets: |  |  |
Net operating loss carryforwards | $ | 45 |  |  | $ | 124 |
Tax credit carryforwards | 27 |  |  | 26 |
Accrued liabilities and deferred income | 91 |  |  | 88 |
Operating leases | 147 |  |  | 151 |
Minimum pension obligations | 15 |  |  | 19 |
Provision for doubtful accounts | 9 |  |  | 9 |
Liability for unrecognized tax benefits | 1 |  |  | 1 |
Interest rate swaps | 12 |  |  | 21 |
Other | 2 |  |  | — |
Total deferred tax assets | 349 |  |  | 439 |
Less: valuation allowance | (20) |  |  | (21) |
Total deferred income tax assets after valuation allowance | 329 |  |  | 418 |
Deferred income tax liabilities: |  |  |
Depreciation and amortization | 546 |  |  | 553 |
Operating leases | 119 |  |  | 119 |
Prepaid expenses | 9 |  |  | 9 |
Basis difference in investment in joint ventures | 7 |  |  | 11 |
Other | 1 |  |  | 1 |
Total deferred tax liabilities | 682 |  |  | 693 |
Net deferred income tax liabilities | $ | (353) |  |  | $ | (275) |
Schedule of the rollforward of unrecognized tax benefits | The rollforward of unrecognized tax benefits are summarized in the table below:
Unrecognized tax benefits—January 1, 2019 | $ | 20 |
Gross increases—tax positions in prior periods | 1 |
Reduction due to lapse of statute of limitations | (1) |
Unrecognized tax benefits—December 31, 2019 | 20 |
Reduction due to lapse of statute of limitations | (1) |
Unrecognized tax benefits—December 31, 2020 | 19 |
Settlements | (1) |
Reduction due to lapse of statute of limitations | (1) |
Unrecognized tax benefits—December 31, 2021 | $ | 17 |

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