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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Earnings from Continuing Operations before Income Taxes

The components of earnings (loss) from continuing operations before income taxes and the provision for (benefit from) income taxes from continuing operations were as follows:


	Years ended December 31,
(In millions)	2022		2021		2020
Earnings (loss) from continuing operations before income taxes:
United States	$	1,021	$	560	$	(126)
Foreign	195		133		(4)
Total	$	1,216	$	693	$	(130)

Provision for (benefit from) income taxes from continuing operations:
Current tax expense (benefit) from continuing operations:
Federal	$	30	$	9	$	(1)
State	43		24		10
Foreign	14		12		6
	87		45		15
Deferred tax expense (benefit) from continuing operations:
Federal	214		112		(28)
State	23		8		(10)
Foreign	29		6		5
	266		126		(33)
Total	$	353	$	171	$	(18)

Schedule of Reconciliation of Federal Statutory Tax Rate with Effective Tax Rate from Continuing Operations

A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows:


	Years ended December 31,
(Percentage of pre-tax earnings)	2022		2021		2020
Federal statutory tax rate	21.0	%	21.0	%	21.0	%

Impact on deferred taxes for changes in tax rates	(0.4)	%	(0.3)	%	0.9	%
Additional deferred tax adjustments	(0.1)	%	(0.1)	%	0.8	%
State income taxes, net of federal income tax benefit	5.1	%	4.4	%	(3.4)	%
Foreign rates varying from federal statutory tax rate	(5.3)	%	0.1	%	1.3	%
FMS U.K. business exit	3.2	%	—	%	—	%
Tax contingencies	(0.3)	%	(0.7)	%	5.5	%
Tax credits	(0.2)	%	(0.3)	%	1.7	%
Other permanent book-tax differences	0.6	%	1.8	%	(3.3)	%
Change in foreign valuation allowance	5.4	%	(1.1)	%	(11.9)	%
Other	0.1	%	(0.1)	%	1.5	%
Effective tax rate	29.1	%	24.7	%	14.1	%

Schedule of Components of Net Deferred Income Tax Liability

The components of the net deferred income tax liability were as follows:


	December 31,
(In millions)	2022		2021
Deferred income tax assets:
Self-insurance accruals	$	109	$	111
Net operating loss carryforwards	182		271

Accrued compensation and benefits	88		69

Pension benefits	27		17
Deferred revenue	131		153
Other, including federal benefit on state tax positions	25		31
	562		652
Valuation allowance	(88)		(24)
	474		628
Deferred income tax liabilities:
Property and equipment basis differences	(2,013)		(1,874)
Other	(18)		(24)
	(2,031)		(1,898)
Net deferred income tax liability (1)	$	(1,557)	$	(1,270)

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(1)Deferred tax assets of $14 million and $5 million have been included in "Sales-type leases and other assets" as of December 31, 2022 and 2021.

Schedule of Uncertain Tax Positions

In many cases, our uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The following table summarizes these open tax years by jurisdiction:


Jurisdiction						Open Tax Year
United States (Federal)						2013 - 2015, 2018 - 2022
Canada						2013 - 2022
Mexico						2017 - 2022
United Kingdom						2020 - 2022
Brazil (in discontinued operations)						2017 - 2022

Schedule of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):


	December 31,
(In millions)	2022		2021		2020
Balance at January 1	$	38	$	43	$	49
Additions based on tax positions related to the current year	2		1		2


Reductions due to lapse of applicable statutes of limitation	(6)		(6)		(8)
Total before interest and penalties at December 31	34		38		43
Interest and penalties	3		4		4
Balance at December 31	$	37	$	42	$	47