Annual report pursuant to Section 13 and 15(d)

Income Taxes Income Taxes (Tables)

v3.22.4
Income Taxes Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The income tax provision/(benefit) consists of the following:
Year Ended December 31,
2022 2021 2020
Current
Federal $ 116  $ 65  $ (5)
State 22  16  (2)
Foreign 22  11  4 
160  92  (3)
Deferred
Federal (30) (5) (10)
State (9) —  (8)
Foreign —  4  (5)
(39) (1) (23)
Provision for/(benefit from) income taxes $ 121  $ 91  $ (26)
Schedule of Income before Income Tax, Domestic and Foreign
Pretax income/(loss) for domestic and foreign operations consisted of the following:
Year Ended December 31,
2022 2021 2020
Domestic $ 432  $ 312  $ (113)
Foreign 44  23  (45)
Pretax income/(loss) $ 476  $ 335  $ (158)
Schedule of Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities are comprised of the following:
As of December 31,
2022 2021
Deferred income tax assets:
Accrued liabilities and deferred revenues $ 85  $ 77 
Tax credits (a)
7  7 
Other comprehensive income and other 14  14 
Provision for doubtful accounts 7  10 
Net operating loss carryforward (b)
22  21 
Valuation allowance (c)
(23) (27)
Deferred income tax assets 112  102 
Deferred income tax liabilities:
Depreciation and amortization 417  444 
Other comprehensive income and other 35  19 
Deferred income tax liabilities 452  463 
Net deferred income tax liabilities $ 340  $ 361 
Reported in:
Other non-current assets $ 5  $ 5 
Deferred income taxes 345  366 
Net deferred income tax liabilities $ 340  $ 361 
_____________________
Schedule of Effective Income Tax Rate Reconciliation
The Company’s effective income tax rate differs from the U.S. federal statutory rate as follows for the years ended December 31:
2022 2021 2020
Federal statutory rate 21.0  % 21.0  % 21.0  %
State and local income taxes, net of federal tax benefits 2.8  3.1  5.5 
Taxes on foreign operations at rates different than U.S. federal statutory rates 1.9  2.0  (2.1)
Taxes on foreign income, net of tax credits 0.4  0.3  1.2 
Nondeductible executive compensation 0.7  0.7  (1.9)
Nondeductible goodwill impairment —  —  (1.8)
Foreign-derived intangible income (0.5) (0.2) 0.2 
Valuation allowances (0.6) 0.5  (5.2)
Other (0.3) (0.2) (0.4)
25.4  % 27.2  % 16.5  %
Schedule of Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s unrecognized tax benefits as of December 31:
2022 2021 2020
Beginning balance $ 7  $ 9  $ 11 
Increases related to tax positions taken during a prior period 4  1  — 
Increases related to tax positions taken during the current period —  —  1 
Decreases related to settlements with taxing authorities —  —  — 
Decreases as a result of a lapse of the applicable statute of limitations (3) (2) (3)
Decreases related to tax positions taken during a prior period —  (1) — 
Ending balance $ 8  $ 7  $ 9