Annual report pursuant to Section 13 and 15(d)

Income Taxes Income Taxes (Tables)

v3.25.0.1
Income Taxes Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The income tax provision consists of the following:
Year Ended December 31,
2024 2023 2022
Current
Federal $ 43  $ 72  $ 116 
State 12  14  22 
Foreign 20  40  22 
75  126  160 
Deferred
Federal 4  (6) (30)
State 2  (4) (9)
Foreign (2) (7) — 
4  (17) (39)
Provision for income taxes $ 79  $ 109  $ 121 
Schedule of Income before Income Tax, Domestic and Foreign
Pretax income for domestic and foreign operations consisted of the following:
Year Ended December 31,
2024 2023 2022
Domestic $ 264  $ 332  $ 432 
Foreign 104  66  44 
Pretax income $ 368  $ 398  $ 476 
Schedule of Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities are comprised of the following:
As of December 31,
2024 2023
Deferred income tax assets:
Accrued liabilities and deferred revenues $ 85  $ 95 
Tax credits (a)
8  9 
Other comprehensive income and other 16  13 
Provision for doubtful accounts 9  8 
Net operating loss carryforward (b)
20  23 
Valuation allowance (c)
(19) (23)
Deferred income tax assets 119  125 
Deferred income tax liabilities:
Depreciation and amortization 404  412 
Other comprehensive income and other 34  26 
Deferred income tax liabilities 438  438 
Net deferred income tax liabilities $ 319  $ 313 
Reported in:
Other non-current assets $ 13  $ 12 
Deferred income taxes 332  325 
Net deferred income tax liabilities $ 319  $ 313 
_____________________
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:
2024 2023 2022
Federal statutory rate 21.0  % 21.0  % 21.0  %
State and local income taxes, net of federal tax benefits 3.0  2.5  2.8 
Taxes on foreign operations at rates different than U.S. federal statutory rates 0.8  2.6  1.9 
Taxes on foreign income, net of tax credits 0.2  0.3  0.4 
Nondeductible executive compensation 1.7  1.2  0.7 
Foreign-derived intangible income (1.1) (0.8) (0.5)
Valuation allowances —  0.1  (0.6)
Puerto Rico tax credits (3.7) —  — 
Other (0.4) 0.5  (0.3)
21.5  % 27.4  % 25.4  %
Schedule of Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s unrecognized tax benefits as of December 31:
2024 2023 2022
Beginning balance $ 11  $ 8  $ 7 
Increases related to tax positions taken during a prior period —  7  4 
Increases related to tax positions taken during the current period 2  2  — 
Decreases related to settlements with taxing authorities —  (2) — 
Decreases as a result of a lapse of the applicable statute of limitations (2) (4) (3)
Ending balance $ 11  $ 11  $ 8