Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Domestic	$	(368)	$	486	$	(449)
Foreign	17		(3)		(11)
Pretax (loss) income	$	(351)	$	483	$	(460)

Schedule of income tax provision

The components of income tax (benefit) expense consisted of the following:

	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	24	$	29	$	(5)
State	—		30		13
Foreign	4		2		2
Total current	28		61		10
Deferred:
Federal	(78)		70		(66)
State	(18)		2		(48)
Foreign	—		—		—
Total deferred	(96)		72		(114)
Income tax (benefit) expense	$	(68)	$	133	$	(104)

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,
	2022		2021		2020
Federal statutory rate	21	%	21	%	21	%
State and local income taxes, net of federal tax benefits	3		6		3
Discontinued operations—establishment/reversal of deferred tax liability (a)	—		—		10
Non-deductible equity compensation	—		1		(2)
Non-deductible executive compensation	(1)		1		(1)
Goodwill impairment	(8)		—		(7)
Uncertain tax positions	(1)		—		—
Tax credits (b)	7		—		—
Net change in valuation allowance	—		—		(1)
Other permanent differences	(2)		(1)		—
Effective tax rate	19	%	28	%	23	%

_______________

(a)This item reflects the tax impact from the 2019 recognition of gain on the pending sale of Cartus (previously recorded in discontinued operations) and the 2020 de-recognition of that gain.

(b)This item includes a benefit related to the completion of a research tax credit study for tax years 2016 through 2022.

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,
	2022		2021
Deferred income tax assets:
Net operating loss carryforwards	$	39	$	45
Tax credit carryforwards	27		27
Accrued liabilities and deferred income	86		91
Interest expense limitation carryforward	41		—
Operating leases	133		147
Minimum pension obligations	14		15
Provision for doubtful accounts	9		9
Liability for unrecognized tax benefits	1		1
Interest rate swaps	—		12
Other	1		2
Total deferred tax assets	351		349
Less: valuation allowance	(20)		(20)
Total deferred income tax assets after valuation allowance	331		329
Deferred income tax liabilities:
Depreciation and amortization	433		546
Operating leases	111		119
Prepaid expenses	9		9
Basis difference in investment in joint ventures	17		7
Other	—		1
Total deferred tax liabilities	570		682
Net deferred income tax liabilities	$	(239)	$	(353)

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, 2020	$	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
Gross increases - tax positions in prior periods	3
Gross decreases - tax positions in prior periods	(1)
Gross increases - tax positions in current period	1
Unrecognized tax benefits—December 31, 2022	$	20