Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of income tax (benefit) expense

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

	Years Ended December 31,
	2024		2023	2022
	(Dollars in millions)
Federal
Current	$	—	(1)	—
Deferred	(44)		(9)	271
State and local
Current	15		8	21
Deferred	—		(11)	4
Foreign
Current	2		1	26
Deferred	(8)		10	(66)
Total income tax (benefit) expense	$	(35)	(2)	256

Schedule of income before income tax, domestic and foreign

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	$	(35)	(2)	256
Member's equity:
Tax effect of the change in accumulated other comprehensive loss	$	—	3	(58)

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,
	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	3.8	%	0.3	%	(0.3)	%
Change in liability for unrecognized tax position	(27.8)	%	—	%	0.4	%
Goodwill impairment	—	%	(19.4)	%	(21.4)	%
Divestiture of business(1)	(19.4)	%	(2.5)	%	(5.1)	%
Change in valuation allowance	34.4	%	—	%	(0.6)	%
Net foreign income tax	(0.1)	%	—	%	0.2	%
Research and development credits	1.4	%	0.1	%	0.1	%
Other, net	(2.0)	%	0.6	%	0.1	%
Effective income tax rate	11.3	%	0.1	%	(5.6)	%

_______________________________________________________________________________

(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,
	2024		2023
	(Dollars in millions)
Deferred tax assets
Net operating loss carry forwards	$	1,319	1,598
Other	604		575
Gross deferred tax assets	1,923		2,173
Less valuation allowance	(126)		(248)
Net deferred tax assets	1,797		1,925
Deferred tax liabilities
Property, plant and equipment	(1,216)		(1,189)
Intangible assets	(858)		(1,063)
Other	(6)		(9)
Gross deferred tax liabilities	(2,080)		(2,261)
Net deferred tax liabilities	$	(283)	(336)

Schedule of 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 period	$	799	813
Decrease in tax positions of current year netted against deferred tax assets	(24)		(50)
Increase in tax positions of prior periods netted against deferred tax assets	91		43
Decreases related to divestitures of businesses	—		(2)
Decrease from the lapse of statute of limitations	(15)		(5)
Unrecognized tax benefits at end of period	$	851	799