Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of components of income tax (benefit) expense for income tax

The components of the income tax (benefit) expense are as follows:


	Years Ended December 31,
	2024		2023	2022
	(Dollars in millions)
Income tax (benefit) expense:
Federal
Current	$	87	7	838
Deferred	(251)		(2)	(332)
State
Current	(29)		(6)	283
Deferred	15		55	(191)
Foreign
Current	2		—	32
Deferred	1		7	(73)
Total income tax (benefit) expense	$	(175)	61	557

Income tax (benefit) expense was allocated as follows:


	Years Ended December 31,
	2024		2023	2022
	(Dollars in millions)
Income tax (benefit) expense in the consolidated statements of operations:
Attributable to income	$	(175)	61	557
Stockholders' equity:
Tax effect of the change in accumulated other comprehensive loss	$	26	(21)	297

Schedule of reconciliation of the statutory federal income tax rate to effective income tax rate

The following is a reconciliation from the statutory federal income tax rate to our effective income tax rate:


	Years Ended December 31,
	2024		2023		2022
	(Percentage of pre-tax loss)
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	4.1	%	(0.2)	%	(8.8)	%
Goodwill impairment	—	%	(21.9)	%	(68.9)	%
Change in liability for unrecognized tax position	(16.8)	%	(0.1)	%	(0.2)	%
Legislative changes to Global Intangible Low-Taxes Income ("GILTI")	(1.2)	%	—	%	—	%
Nondeductible executive stock compensation	(4.9)	%	—	%	(0.1)	%
Change in valuation allowance	2.3	%	1.3	%	0.9	%
Net foreign income taxes	(2.3)	%	—	%	3.0	%
Research and development credits	6.5	%	0.1	%	1.1	%
Divestitures of businesses(1)	—	%	(0.4)	%	(4.0)	%
Indemnification refunds	11.2	%	—	%	—	%
Cancellation of debt income	59.3	%	—	%	—	%
Other, net	(3.1)	%	(0.4)	%	(0.2)	%
Effective income tax rate	76.1	%	(0.6)	%	(56.2)	%

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(1)Includes GILTI incurred as a result of the sale of our Latin American business.

Schedule of components of deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:


	As of December 31,
	2024		2023
	(Dollars in millions)
Deferred tax assets
Post-retirement and pension benefit costs	$	583	659
Net operating loss carryforwards	649		794
Other employee benefits	22		23
Other	744		511
Gross deferred tax assets	1,998		1,987
Less valuation allowance	(343)		(399)
Net deferred tax assets	1,655		1,588
Deferred tax liabilities
Property, plant and equipment, primarily due to depreciation differences	(3,447)		(3,332)
Goodwill and other intangible assets	(1,002)		(1,271)
Gross deferred tax liabilities	(4,449)		(4,603)
Net deferred tax liability	$	(2,794)	(3,015)

Schedule of the reconciliation of the change in gross unrecognized tax benefits

A reconciliation of the change in our gross unrecognized tax benefits (excluding both interest and any related federal benefit) for the years ended December 31, 2024 and 2023 is as follows:


	2024		2023
	(Dollars in millions)
Unrecognized tax benefits at beginning of year	$	1,424	1,318



Decrease in tax positions of prior periods netted against deferred tax assets	(4)		(411)
Decrease in tax positions taken in the current year	(64)		(73)
Increase in tax positions taken in the prior year	65		752
Decrease due to payments/settlements	—		(1)
Decrease from the lapse of statute of limitations	(158)		(52)
Decrease related to divestitures of businesses	—		(109)
Unrecognized tax benefits at end of year	$	1,263	1,424