Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of components of provision for income tax

The components of the income tax expense are as follows:

	Years Ended December 31,
	2023		2022	2021
	(Dollars in millions)
Income tax expense:
Federal
Current	$	7	838	5
Deferred	(2)		(332)	514
State
Current	(6)		283	42
Deferred	55		(191)	72
Foreign
Current	—		32	23
Deferred	7		(73)	12
Total income tax expense	$	61	557	668

	Years Ended December 31,
	2023		2022	2021
	(Dollars in millions)
Income tax expense was allocated as follows:
Income tax expense in the consolidated statements of operations:
Attributable to income	$	61	557	668
Stockholders' equity:
Tax effect of the change in accumulated other comprehensive loss	$	(21)	297	222

Schedule of reconciliation of the statutory federal income tax rate to effective income tax rate

The following is a reconciliation from the statutory federal income tax rate to our effective income tax rate:

	Years Ended December 31,
	2023		2022		2021
	(Percentage of pre-tax (loss) income)
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	(0.2)	%	(8.8)	%	3.3	%
Goodwill impairment	(21.9)	%	(68.9)	%	—	%
Change in liability for unrecognized tax position	(0.1)	%	(0.2)	%	0.1	%
Nondeductible executive stock compensation	—	%	(0.1)	%	0.2	%
Change in valuation allowance	1.3	%	0.9	%	—	%
Net foreign income taxes	—	%	3.0	%	0.6	%
Research and development credits	0.1	%	1.1	%	(0.5)	%
Divestitures of businesses(1)	(0.4)	%	(4.0)	%	—	%
Other, net	(0.4)	%	(0.2)	%	—	%
Effective income tax rate	(0.6)	%	(56.2)	%	24.7	%

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(1)Includes GILTI (as defined below) incurred as a result of the sale of our Latin American business.

Schedule of components of deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:

	As of December 31,
	2023		2022(1)
	(Dollars in millions)
Deferred tax assets
Post-retirement and pension benefit costs	$	659	725
Net operating loss carryforwards	794		871
Other employee benefits	23		85
Other	511		519
Gross deferred tax assets	1,987		2,200
Less valuation allowance	(399)		(550)
Net deferred tax assets	1,588		1,650
Deferred tax liabilities
Property, plant and equipment, primarily due to depreciation differences	(3,332)		(3,046)
Goodwill and other intangible assets	(1,271)		(1,634)
Gross deferred tax liabilities	(4,603)		(4,680)
Net deferred tax liability	$	(3,015)	(3,030)

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(1)Excludes $138 million of deferred tax assets and $38 million of deferred tax liabilities related to the EMEA business sold November 1, 2023, that were classified as held for sale as of December 31, 2022.

Schedule of the reconciliation of the change in gross unrecognized tax benefits

A reconciliation of the change in our gross unrecognized tax benefits (excluding both interest and any related federal benefit) from January 1 to December 31 for 2023 and 2022 is as follows:

	2023		2022
	(Dollars in millions)
Unrecognized tax benefits at beginning of year	$	1,318	1,375
Decrease in tax positions of prior periods netted against deferred tax assets	(411)		(661)
(Decrease) increase in tax positions taken in the current year	(73)		634
Increase (decrease) in tax positions taken in the prior year	752		(3)
Decrease due to payments/settlements	(1)		—
Decrease from the lapse of statute of limitations	(52)		—
Decrease related to divestitures of businesses	$	(109)	(27)
Unrecognized tax benefits at end of year	$	1,424	1,318