Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Geographical Sources of Income Before Income Taxes

The geographical sources of income (loss) before income taxes were as follows (in millions):

	Year Ended December 31,
	2022		2021		2020
U.S.	$	(69)	$	328	$	33
Outside U.S.	613		640		527
Total	$	544	$	968	$	560

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following (in millions):

	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	141	$	63	$	6
State	22		12		1
Foreign	126		124		89
Total current	$	289	$	199	$	96
Deferred:
Federal	(168)		(48)		(25)
State	(22)		(12)		(5)
Foreign	(18)		(8)		(10)
Total deferred	$	(208)	$	(68)	$	(40)
Total	$	81	$	131	$	56

Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate is provided below:

	Year Ended December 31,
	2022		2021		2020
Provision computed at statutory rate	21.0	%	21.0	%	21.0	%
Remeasurement of deferred taxes	(0.4)		(1.0)		(0.6)
Change in valuation allowance	0.1		(0.1)		0.1
U.S. impact of Enterprise acquisition	0.4		0.3		0.3
Change in contingent income tax reserves	(0.3)		(0.2)		(0.4)
Foreign earnings subject to U.S. taxation	(3.5)		(2.0)		1.5
Foreign rate differential	(3.4)		(1.7)		(5.5)
State income tax, net of federal tax benefit	(0.5)		0.3		0.4
Tax credits	(3.1)		(2.0)		(2.9)
Equity compensation deductions	(0.1)		(2.4)		(3.2)
Return to provision and other true ups	1.5		(0.9)		(2.5)
Settlements with tax authorities	2.0		0.0		0.0
Permanent differences and other	1.2		2.2		1.8
Provision for income taxes	14.9	%	13.5	%	10.0	%

Schedule of Components of Deferred Tax Assets and Liabilities

Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions):

	December 31,
	2022		2021
Deferred tax assets:
Capitalized research expenditures	$	138	$	14
Deferred revenue	93		85
Tax credits	32		37
Net operating loss carryforwards	432		438
Other accruals	31		40
Inventory items	21		15
Sales return/rebate reserve	81		61
Share-based compensation expense	14		12
Legal accrual	55		2
Lease liabilities	23		12
Valuation allowance	(420)		(422)
Total deferred tax assets	$	500	$	294
Deferred tax liabilities:
Depreciation and amortization	127		84
Unrealized gains and losses on securities and investments	12		5
Undistributed earnings	2		4
Right of use lease assets	20		11
Other	7		4
Total deferred tax liabilities	$	168	$	108
Net deferred tax assets	$	332	$	186

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

	Year ended December 31,
	2022		2021
Balance at beginning of year	$	7	$	8
Additions for tax positions related to prior years	3		—
Settlements for tax positions	(2)		—
Lapse of statutes	(1)		(1)
Balance at end of year	$	7	$	7