Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

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

The domestic and foreign components of income (loss) before income taxes were as follows (in millions):

	December 31,
	2017			2016			2015
United States	$	(64	)	$	(206	)	$	(524	)
Foreign		12			(24	)		6
Loss before income taxes	$	(52	)	$	(230	)	$	(518	)

Components of the Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes for 2017, 2016 and 2015 consisted of the following (in millions):

	2017			2016			2015
U.S. Federal:
Current		—		$	2		$	(14	)
Deferred		—			(1	)		(2	)
		—			1			(16	)
U.S. State:
Current		—			—			(1	)
Deferred		—			—			—
		—			—			(1	)
Foreign
Current		1			3			5
Deferred		(1	)		—			(4	)
		—			3			1
Income tax provision (benefit)	$	—		$	4		$	(16	)

Reconciliation Between Effective Tax Rate

The reconciliation between the Company’s effective tax rate on income (loss) from continuing operations and the statutory tax rate is as follows (in millions):

	December 31,
	2017			2016			2015
Income tax provision (benefit) at federal statutory rate	$	(18	)	$	(81	)	$	(181	)
Foreign tax rate differential		(2	)		2			(1	)
State income tax provision (benefit), net of federal benefit		(5	)		(3	)		(8	)
Nondeductible expenses		2			8			3
Foreign tax credits		(31	)		(2	)		(3	)
Nondeductible goodwill impairment		—			—			42
One-time transition tax		33
U.S. tax rate change		69
Change in valuation allowance		(45	)		78			129
Change in contingency reserve and other		(3	)		2			3
Income tax provision (benefit)	$	—		$	4		$	(16	)
Effective tax rate		0.0	%		(1.6	)%		3.0	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions):

	December 31,
	2017			2016			2015
Deferred tax assets:
Allowances and operating liabilities	$	8		$	8		$	9
Net operating loss carryforwards		52			78			13
Foreign tax credit carryforwards		29			5			3
Trade credit		1			3			4
Allowance for doubtful accounts		6			10			12
Inventory reserve		12			18			11
Stock-based compensation		15			19			19
Intangible assets		27			53			56
Other		2			6			1
Total deferred tax assets		152			200			128
Deferred tax liabilities:
Tax over book depreciation		—			(4	)		(6	)
Total deferred tax liabilities		—			(4	)		(6	)
Net deferred tax assets before valuation allowance		152			196			122
Valuation allowance		(157	)		(202	)		(129	)
Net deferred tax assets (liability)	$	(5	)	$	(6	)	$	(7	)

Reconciliation of Unrecognized Tax Benefits

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

	2017			2016		2015
Unrecognized tax benefit at January 1	$	1		$	1	$	—
Gross increases - tax positions in prior period		—			—		—
Gross decreases - tax positions in prior period		—			—		—
Gross increases - tax positions in current period		—			—		1
Settlement		(1	)		—		—
Lapse of statute of limitations		—			—		—
Unrecognized tax benefit at December 31	$	—		$	1	$	1