Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Earning Before Income Tax, Domestic and Foreign

Earnings before taxes consists of the following:

	Year Ended December 31,
(Dollars in millions)	2024		2023		2022
Earnings before taxes
Domestic	$	236	$	197	$	531
Foreign	28		(5)		(6)
Total	$	264	$	192	$	525

Schedule of Income Tax Provision

Income tax provision consists of the following:

	Year Ended December 31,
(Dollars in millions)	2024		2023		2022
Current:
Federal	$	15	$	61	$	93
State	11		14		24
Foreign	2		1		—
Total current	28		76		117
Deferred:
Federal	16		(44)		5
State	4		(7)		(6)
Foreign	3		(1)		4
Total deferred	23		(52)		3
Total	$	51	$	24	$	120

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation from the statutory federal income tax rate to our effective income tax rate follows:

	Year Ended December 31,
	2024		2023		2022
Statutory federal rate	21.0	%	21.0	%	21.0	%
State rate, net of federal benefit	4.2	%	2.5	%	2.8	%
Foreign rate differential	(1.5)	%	0.1	%	(0.3)	%
Research & development credit, net of reserves	(7.1)	%	(18.0)	%	(0.5)	%
Excess tax benefits from share-based compensation	(1.2)	%	(0.1)	%	—	%
Nondeductible officer compensation	1.2	%	0.8	%	0.3	%
Nondeductible expenses	0.6	%	0.2	%	0.1	%
Global intangible low-taxed income	2.1	%	0.2	%	0.2	%
Change in valuation allowance	0.7	%	1.0	%	1.5	%
Change in tax reserves	0.2	%	1.1	%	—	%
Purchase tax credits	(0.7)	%	—	%	—	%
Divestiture impact	—	%	4.7	%	(1.9)	%
Other	(0.2)	%	(1.0)	%	(0.3)	%
Effective tax rate	19.3	%	12.5	%	22.9	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023 are as follows:

	December 31,
(Dollars in millions)	2024		2023
Deferred tax assets:
Federal net operating loss	$	1	$	3
State net operating loss	6		8
Foreign net operating loss	7		7
Tax credit carryforwards	19		13
Lease liabilities	44		54
Capitalized R&D, net of amortization	143		88
Accrued compensation and benefits	27		25
Contract liabilities	20		20
Accrued expenses	3		3
Pension and post-retirement plans	12		13
Inventory capitalization	8		8
Disallowed interest	—		1
Other	7		15
Total gross deferred tax assets	297		258
Less valuation allowance	25		21
Deferred tax assets	272		237
Deferred tax liabilities:
Right-of-use assets	$	(40)	$	(50)
Long-term contracts	(55)		—
Intangible assets	(39)		(41)
Property, plant and equipment, net	(23)		(25)
Other	(2)		(2)
Deferred tax liabilities	(159)		(118)
Net deferred tax asset	$	113	$	119

Schedule of Unrecognized Tax Benefits

The table below summarizes the activity associated with our unrecognized tax benefits:

(Dollars in millions)	2024		2023		2022
Balance at January 1,	$	40	$	24	$	22
Increase related to prior year tax positions	2		11		1
Increase related to current year tax positions	6		6		2
Decreases related to prior year tax positions	—		(1)		—
Lapse of statute of limitations	—		—		(1)
Balance at December 31,	$	48	$	40	$	24