Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

The components of the income tax expense are as follows:

	Years Ended December 31,
	2022		2021	2020
	(Dollars in millions)
Federal
Current	$	—	—	—
Deferred	271		125	162
State and local
Current	21		12	22
Deferred	4		28	42
Foreign
Current	26		16	19
Deferred	(66)		16	(24)
Total income tax expense	$	256	197	221

Schedule of income before income tax, domestic and foreign

	Years Ended December 31,
	2022		2021	2020
	(Dollars in millions)
Income tax expense was allocated as follows:
Income tax expense in the consolidated statements of operations:
Attributable to income	$	256	197	221
Member's equity:
Tax effect of the change in accumulated other comprehensive loss	$	(58)	(30)	43

Schedule of effective income tax rate reconciliation

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

	Years Ended December 31,
	2022		2021		2020
	(Percentage of pre-tax income)
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	(0.3)	%	4.1	%	5.8	%
Goodwill impairment	(21.4)	%	—	%	—	%
Tax law changes	—	%	—	%	(1.5)	%
Divestiture of business(1)	(5.1)	%	—	%	—	%
Net foreign income tax	0.2	%	1.6	%	0.9	%
Research and development credits	0.1	%	(0.4)	%	(0.6)	%
Other, net	(0.1)	%	(1.1)	%	(0.3)	%
Effective income tax rate	(5.6)	%	25.2	%	25.3	%

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(1)Includes Global Intangible Low-Taxes Income ("GILTI") incurred as a result of the sale of our Latin American business.

Deferred tax assets and 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,
	2022		2021
	(Dollars in millions)
Deferred tax assets
Deferred revenue	$	261	306
Net operating loss carry forwards	1,680		3,191
Property, plant and equipment	92		71
Other	448		267
Gross deferred tax assets	2,481		3,835
Less valuation allowance	(303)		(1,103)
Net deferred tax assets	2,178		2,732
Deferred tax liabilities
Deferred revenue	(5)		(14)
Property, plant and equipment	(1,142)		(1,295)
Intangible assets	(1,328)		(1,539)
Other	(58)		(20)
Gross deferred tax liabilities	(2,533)		(2,868)
Net deferred tax liabilities	$	(355)	(136)

Schedule of unrecognized tax benefits

A reconciliation of the change in our gross unrecognized tax benefits (excluding both interest and any related federal benefit) from January 1 to December 31 for 2022 and 2021 is as follows:

	2022		2021
	(Dollars in millions)
Unrecognized tax benefits at beginning of period	$	876	923
Tax positions of current year netted against deferred tax assets	(34)		—
Tax positions of prior periods netted against deferred tax assets	—		(49)
Decrease in tax positions taken in the prior period	(2)		—
Increase in tax positions taken in the current period	3		4
Decrease due to settlement/payments	—		(2)
Decrease from the lapse of statute of limitations	(30)		—
Unrecognized tax benefits at end of period	$	813	876