Annual report pursuant to Section 13 and 15(d)

Income Taxes Income Taxes (Tables)

v3.10.0.1
Income Taxes Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule Of Impact Of Tax Cuts And Jobs Act Of 2017
The following table presents the impact of the accounting for the enactment of U.S. tax reform on our provision for (benefit from) income taxes:
 
 
Year Ended December 31,
 
 
2018
 
2017
Remeasurement of net deferred income tax and uncertain tax liabilities
 
$
(2
)
 
$
(87
)
One-time deemed repatriation tax on undistributed historical earnings of foreign subsidiaries
 
(2
)
 
2

Total provision for (benefit from) income taxes impact
 
$
(4
)
 
$
(85
)
Schedule of Components of Income Tax Expense (Benefit)
The income tax provision consists of the following:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Current
 
 
 
 
 
 
Federal
$
34

 
$
84

 
$
67

 
State
13

 
13

 
16

 
Foreign
14

 
7

 
9

 
 
61

 
104

 
92

Deferred
 
 

 
 
 
Federal
2

 
(89
)
 
22

 
State
(2
)
 
(1
)
 
4

 
Foreign
—

 
(1
)
 
—

 
 
—

 
(91
)
 
26

Provision for income taxes
$
61

 
$
13

 
$
118

Schedule of Income before Income Tax, Domestic and Foreign
Pretax income for domestic and foreign operations consisted of the following:
 
Year Ended December 31,
 
2018
 
2017
 
2016
Domestic
$
190

 
$
234

 
$
271

Foreign
33

 
9

 
23

Pretax income
$
223

 
$
243

 
$
294

Schedule of Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities are comprised of the following:
 
 
As of December 31,
 
 
2018
 
2017
Deferred income tax assets:
 
 
 
 
Accrued liabilities and deferred income
$
87

 
$
53

 
Tax credits (a)
12

 
—

 
Provision for doubtful accounts
20

 
22

 
Net operating loss carryforward (b)
14

 
10

 
Other
14

 
2

 
Valuation allowance (c)
(15
)
 
(9
)
Deferred income tax assets
132

 
78

 
 
 
 
 
Deferred income tax liabilities:
 
 
 
 
Depreciation and amortization
517

 
241

 
Other
12

 
8

Deferred income tax liabilities
529

 
249

 
Net deferred income tax liabilities
$
397

 
$
171

 
 
 
 
 
Reported in:
 
 
 
Other non-current assets
$
2

 
$
2

Deferred income taxes
399

 
173

 
Net deferred income tax liabilities
$
397

 
$
171

_____________________________
(a) 
As of December 31, 2018, the Company had $6 million of foreign tax credits. The foreign tax credits primarily expire in 2028.
(b) 
As of December 31, 2018, the Company’s net operating loss carryforwards primarily relate to state net operating losses, which are due to expire at various dates, but no later than 2038.
(c) 
The valuation allowance of $15 million at December 31, 2018 relates to net operating loss carryforwards, certain deferred tax assets and foreign tax credits of $11 million, $3 million and $1 million, respectively. The valuation allowance of $9 million at December 31, 2017 relates to net operating loss carryforwards of $8 million and certain deferred tax assets of $1 million. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized.
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:
 
2018
 
2017
 
2016
Federal statutory rate
21.0
 %
 
35.0
 %
 
35.0
 %
State and local income taxes, net of federal tax benefits
2.9

 
3.6

 
4.5

Taxes on foreign operations at rates different than U.S. federal statutory rates
1.9

 
0.8

 
(0.2
)
Taxes on foreign income, net of tax credits
0.3

 
0.4

 
0.1

Valuation allowances
1.4

 
(0.1
)
 
(0.2
)
Impact of U.S. tax reform
(1.8
)
 
(34.9
)
 
—

Other
1.7

 
0.5

 
0.9

 
27.4
 %
 
5.3
 %
 
40.1
 %
Schedule of Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
 
2018
 
2017
 
2016
Beginning Balance
$
12

 
$
13

 
$
11

Increases related to tax positions taken during a prior period
2

 
—

 
1

Increases related to tax positions taken during the current period
1

 
2

 
3

Decreases related to settlements with taxing authorities
—

 
—

 
—

Decreases as a result of a lapse of the applicable statute of limitations
(2
)
 
(2
)
 
(1
)
Decreases related to tax positions taken during a prior period
—

 
(1
)
 
(1
)
Ending Balance
$
13

 
$
12

 
$
13