Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Domestic and Foreign Income (Loss) Before Income Taxes

The following table summarizes our U.S. and foreign income (loss) before income taxes:


	Year Ended December 31,
	2023		2022		2021
	(In millions)
U.S.	$	935	$	67	$	(274)
Foreign	83		471		236
Total	$	1,018	$	538	$	(38)

Schedule of Income Tax Expense

The following table summarizes our provision for income taxes:


	Year Ended December 31,
	2023		2022		2021
			(In millions)
Current income tax expense:
U.S. federal	$	128	$	17	$	17
State	36		6		7
Foreign	104		102		68
Current income tax expense	268		125		92
Deferred income tax (benefit) expense:
U.S. federal	75		(4)		(137)
State	(4)		(2)		(19)
Foreign	(9)		76		11
Deferred income tax (benefit) expense	62		70		(145)
Income tax (benefit) expense	$	330	$	195	$	(53)

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

As of December 31, 2023 and 2022, the significant components of our deferred tax assets and deferred tax liabilities were as follows:


	December 31,
	2023		2022
	(In millions)
Deferred tax assets:
Provision for accrued expenses	$	42	$	51
Deferred loyalty rewards	204		225
Net operating loss and tax credit carryforwards	314		520
Stock-based compensation	14		22
Property and equipment	23		24
Capitalized research and development	325		154
Operating lease liabilities	130		86
Long-term investments	168		194
Other	65		59
Total deferred tax assets	1,285		1,335
Less valuation allowance	(244)		(242)
Net deferred tax assets	$	1,041	$	1,093
Deferred tax liabilities:
Goodwill and intangible assets	(345)		(387)
Anticipatory foreign tax credits	(16)		—
Operating lease ROU assets	(127)		(83)
Other	—		(14)
Total deferred tax liabilities	$	(488)	$	(484)
Net deferred tax assets	$	553	$	609

Schedule of Statutory Federal Income Tax Rate to Income from Continuing Operations before Income Taxes

A reconciliation of amounts computed by applying the U.S. federal statutory income tax rate to income before income taxes to total income tax expense is as follows:


	Year Ended December 31,
	2023		2022		2021
			(In millions)
Income tax (benefit) expense at the U.S. federal statutory rate of 21%	$	214	$	113	$	(8)
Foreign tax rate differential	(27)		(75)		3
U.S. federal research and development credit	(52)		(40)		(27)
Excess tax benefits related to stock-based compensation	9		(17)		(56)
Nondeductible compensation	28		37		45
Unrecognized tax benefits and related interest	39		27		6
Change in valuation allowances	—		77		(24)
Return to provision true-ups	(44)		(11)		4
State taxes	22		3		(9)
Non-creditable foreign withholding tax	3		21		1
Non-deductible goodwill impairment	92		—		—
Divestitures and entity restructuring	67		65		(6)
Foreign-derived intangible income	(25)		(15)		—
Other, net	4		10		18
Income tax (benefit) expense	$	330	$	195	$	(53)

Schedule of Income Tax Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits and interest is as follows:


	2023		2022		2021
			(In millions)
Balance, beginning of year	$	379	$	349	$	345
Increases to tax positions related to the current year	19		23		11
Increases to tax positions related to prior years	4		5		3
Decreases to tax positions related to prior years	—		—		(11)

Settlements during current year	(1)		(8)		(6)
Interest and penalties	24		10		7
Balance, end of year	$	425	$	379	$	349