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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Before Income Taxes For the years ended December 31, income (loss) before income taxes consisted of the following: 
In millions202120202019
Income (loss) income before income taxes
United States$67 $(41)$(85)
Foreign125 17 72 
Total income (loss) before income taxes$192 $(24)$(13)
Income Tax Expense For the years ended December 31, income tax expense (benefit) consisted of the following:
In millions202120202019
Income tax expense (benefit)
Current
Federal$(1)$(45)$(3)
State and local5 1 — 
Foreign27 9 13 
Deferred
Federal3 34 (10)
State and local1 6 (1)
Foreign10 (158)8 
Total income tax expense (benefit)$45 $(153)$7 
Effective income tax rate23.4 %637.5 %(53.8 %)
The Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate The following table presents the principal components of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:
202120202019
Income tax expense at the U.S. federal tax rate21.0 %21.0 %21.0 %
Foreign income tax differential2.8 %(20.8)%(49.2)%
U.S. tax on foreign earnings0.3 %(16.7)%(8.4)%
State and local income taxes(1.3)%25.0 %58.2 %
U.S. permanent book/tax differences(2.3)%(4.2)%(17.0)%
U.S. research and development tax credits(2.6)%25.0 %68.5 %
Change in valuation allowance3.2 %(25.0)%(49.1)%
Tax impact of NOL carry-back under the CARES act.— %79.2 %— %
Tax impact of stock compensation0.8 %(66.7)%(49.3)%
Deferred tax impact from intra-entity IP transfer— %654.2 %— %
Tax Impact of uncertain tax positions2.0 %(29.2)%(24.6)%
Other, net(0.5)%(4.3)%(3.9)%
Effective income tax rate23.4 %637.5 %(53.8)%
Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:
In millions20212020
Deferred income tax assets
Employee pensions and other liabilities$65 $62 
Other balance sheet reserves and allowances8 13 
Operating lease liabilities7 10 
Tax loss and credit carryforwards86 105 
Deferred revenue6 7 
Intangibles and capitalized software159 155 
Total deferred income tax assets331 352 
Valuation allowance(58)(51)
Net deferred income tax assets273 301 
Deferred income tax liabilities
Right of use assets - operating lease6 9 
Property and equipment41 52 
Other31 25 
Total deferred income tax liabilities78 86 
Total net deferred income tax assets$195 $215 
Liability Related to Uncertain Tax Positions Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:
In millions20212020
Balance at January 1$39 $37 
Gross increases for prior period tax positions5 6 
Gross increases for current period tax positions3 2 
Decreases due to the lapse of applicable statute of limitations(4)(2)
Decreases relating to settlements with taxing authorities— (4)
Balance at December 31$43 $39