v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The domestic and foreign components of income (loss) before income taxes were as follows:

Year Ended December 31,
202220212020
(in millions)
U.S. income (loss) before income taxes$1,320 $631 $(267)
Foreign income (loss) before income taxes414 (71)(657)
Income (loss) before income taxes$1,734 $560 $(924)
Schedule of Components of Income Tax Expense (Benefit)
The components of our provision (benefit) for income taxes were as follows:

Year Ended December 31,
202220212020
(in millions)
Current:
Federal$306 $89 $(6)
State81 45 (32)
Foreign56 23 69 
Total current443 157 31 
Deferred:
Federal16 51 (102)
State6 (14)(34)
Foreign12 (41)(99)
Total deferred34 (4)(235)
Total provision (benefit) for income taxes$477 $153 $(204)
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of the provision (benefit) for income taxes at the U.S. statutory rate to the provision (benefit) for income taxes were as follows:

Year Ended December 31,
202220212020
(in millions)
Statutory U.S. federal income tax provision (benefit)$364 $118 $(194)
State income taxes, net of U.S. federal income tax benefit65 22 (24)
Impact of foreign operations35 8 (106)
Goodwill impairment losses— — 22 
Tax rate differential on U.S. federal net operating loss carryback— — (14)
Changes in deferred tax asset valuation allowances(5)34 116 
Income tax rate changes(1)
— (45)— 
Provision for uncertain tax positions14 15 7 
Other, net4 1 (11)
Provision (benefit) for income taxes$477 $153 $(204)
____________
(1)Income tax rate changes resulted in the remeasurement of our deferred tax assets and liabilities and other tax liabilities to the new tax rates, resulting in a $49 million deferred tax benefit and a $4 million current tax expense, respectively.
Schedule of Deferred Tax Assets and Liabilities The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows:
December 31,
20222021
(in millions)
Deferred tax assets:
Net tax loss carryforwards and carrybacks$641 $649 
Compensation117 101 
Reserves66 76 
Operating and finance lease liabilities301 341 
Deferred income271 278 
Foreign tax credit carryforwards49 48 
Other102 144 
Total gross deferred tax assets1,547 1,637 
Less: valuation allowance(649)(669)
Deferred tax assets898 968 
Deferred tax liabilities:
Brands(1,151)(1,152)
Finite-lived intangible assets(40)(61)
Investment in foreign subsidiaries(22)(24)
Operating and finance lease ROU assets(206)(218)
Other(10)— 
Deferred tax liabilities(1,429)(1,455)
Net deferred taxes$(531)$(487)
Schedule of Unrecognized Tax Benefits
Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows:

Year Ended December 31,
202220212020
(in millions)
Balance at beginning of year$375 $451 $395 
Additions for tax positions related to prior years1 33 45 
Additions for tax positions related to the current year3 2 56 
Reductions for tax positions related to prior years(32)(39)(13)
Settlements— (66)(37)
Lapse of statute of limitations(5)(2)(1)
Currency translation adjustment(5)(4)6 
Balance at end of year$337 $375 $451