Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
U.S.	$	167	$	(69)	$	328
Outside U.S.	167		613		640
Total	$	334	$	544	$	968

Schedule of Components of Income Tax Expense (Benefit)

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

	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	2	$	141	$	63
State	8		22		12
Foreign	63		126		124
Total current	$	73	$	289	$	199
Deferred:
Federal	(5)		(168)		(48)
State	(7)		(22)		(12)
Foreign	(23)		(18)		(8)
Total deferred	$	(35)	$	(208)	$	(68)
Total	$	38	$	81	$	131

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,
	2023		2022		2021
Provision computed at statutory rate	21.0	%	21.0	%	21.0	%
Remeasurement of deferred taxes	(2.4)		(0.4)		(1.0)
Change in valuation allowance	2.3		0.1		(0.1)
U.S. impact of Enterprise acquisition	0.3		0.4		0.3
Change in contingent income tax reserves	0.4		(0.3)		(0.2)
Foreign earnings subject to U.S. taxation	(5.3)		(3.5)		(2.0)
Foreign rate differential	(0.1)		(3.4)		(1.7)
State income tax, net of federal tax benefit	0.5		(0.5)		0.3
Tax credits	(5.5)		(3.1)		(2.0)
Equity compensation deductions	0.4		(0.1)		(2.4)
Return to provision and other true ups	(1.8)		1.5		(0.9)
Settlements with tax authorities	0.3		2.0		0.0
Permanent differences and other	1.3		1.2		2.2
Provision for income taxes	11.4	%	14.9	%	13.5	%

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,
	2023		2022
Deferred tax assets:
Capitalized research expenditures	$	225	$	138
Deferred revenue	76		93
Tax credits	43		32
Net operating loss carryforwards	435		432
Other accruals	38		31
Inventory items	23		21
Sales return/rebate reserve	42		81
Share-based compensation expense	15		14
Legal accrual	13		55
Lease liabilities	23		23
Valuation allowance	(422)		(420)
Total deferred tax assets	$	511	$	500
Deferred tax liabilities:
Depreciation and amortization	103		127
Unrealized gains and losses on securities and investments	11		12
Undistributed earnings	2		2
Right of use lease assets	19		20
Other	5		7
Total deferred tax liabilities	$	140	$	168
Net deferred tax assets	$	371	$	332

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,
	2023		2022
Balance at beginning of year	$	7	$	7
Additions for tax positions related to the current year	11		—
Additions for tax positions related to prior years	—		3
Settlements for tax positions	—		(2)
Lapse of statutes	(1)		(1)
Balance at end of year	$	17	$	7