Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
	(In millions)
U.S.	$	1,280	$	935	$	67
Foreign	262		83		471
Total	$	1,542	$	1,018	$	538

Schedule of Income Tax Expense

The following table summarizes our provision for income taxes:


	Year Ended December 31,
	2024		2023		2022
			(In millions)
Current income tax expense:
U.S. federal	$	123	$	128	$	17
State	30		36		6
Foreign	91		104		102
Current income tax expense	244		268		125
Deferred income tax (benefit) expense:
U.S. federal	77		75		(4)
State	18		(4)		(2)
Foreign	(21)		(9)		76
Deferred income tax (benefit) expense	74		62		70
Income tax expense	$	318	$	330	$	195

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

As of December 31, 2024 and 2023, the significant components of our deferred tax assets and deferred tax liabilities were as follows:


	December 31,
	2024		2023
	(In millions)
Deferred tax assets:
Provision for accrued expenses	$	47	$	42
Deferred loyalty rewards	217		204
Net operating loss and tax credit carryforwards	130		314

Property and equipment	25		23
Capitalized research and development	391		325
Operating lease liabilities	118		130
Long-term investments	108		168
Other	59		79
Total deferred tax assets	1,095		1,285
Less valuation allowance	(176)		(244)
Net deferred tax assets	$	919	$	1,041
Deferred tax liabilities:
Goodwill and intangible assets	(308)		(345)
Anticipatory foreign tax credits	(17)		(16)
Operating lease ROU assets	(115)		(127)
Other	(2)		—
Total deferred tax liabilities	$	(442)	$	(488)
Net deferred tax assets	$	477	$	553

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,
	2024		2023		2022
			(In millions)
Income tax expense at the U.S. federal statutory rate of 21%	$	324	$	214	$	113
Foreign tax rate differential	—		(27)		(75)
U.S. federal research and development credit	(48)		(52)		(40)
Excess tax benefits related to stock-based compensation	(7)		9		(17)
Nondeductible compensation	34		28		37
Unrecognized tax benefits and related interest	37		39		27
Change in valuation allowances	(67)		—		77
Return to provision true-ups	2		(44)		(11)
State taxes	32		22		3
Non-creditable foreign withholding tax	2		3		21
Non-deductible goodwill impairment	—		92		—
Divestitures and entity restructuring	—		67		65
Foreign-derived intangible income	(28)		(25)		(15)
Other, net	37		4		10
Income tax expense	$	318	$	330	$	195

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:


	2024		2023		2022
			(In millions)
Balance, beginning of year	$	425	$	379	$	349
Increases to tax positions related to the current year	18		19		23
Increases to tax positions related to prior years	4		4		5
Decreases to tax positions related to prior years	(3)		—		—

Settlements during current year	(3)		(1)		(8)
Interest and penalties	27		24		10
Balance, end of year	$	468	$	425	$	379