Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Geographical Sources of Income Before Income Taxes

The geographical sources of income (loss) before income taxes were as follows (in millions):

	Year Ended December 31,
	2024		2023		2022
U.S.	$	486	$	167	$	(69)
Outside U.S.	149		167		613
Total	$	635	$	334	$	544

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following (in millions):

	Year Ended December 31,
	2024		2023		2022
Current:
Federal	$	129	$	2	$	141
State	27		8		22
Foreign	45		63		126
Total current	$	201	$	73	$	289
Deferred:
Federal	(83)		(5)		(168)
State	(10)		(7)		(22)
Foreign	(1)		(23)		(18)
Total deferred	$	(94)	$	(35)	$	(208)
Total	$	107	$	38	$	81

Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate is provided below:

	Year Ended December 31,
	2024		2023		2022
Provision computed at statutory rate	21.0	%	21.0	%	21.0	%
Remeasurement of deferred taxes	2.9		(2.4)		(0.4)
Change in valuation allowance	(2.9)		2.3		0.1
U.S. impact of Enterprise acquisition	0.1		0.3		0.4
Change in contingent income tax reserves	0.5		0.4		(0.3)
Foreign earnings subject to U.S. taxation	(6.0)		(5.3)		(3.5)
Foreign rate differential	0.6		(0.1)		(3.4)
State income tax, net of federal tax benefit	1.6		0.5		(0.5)
Tax credits	(2.2)		(5.5)		(3.1)
Equity compensation deductions	—		0.4		(0.1)
Return to provision and other true ups	0.4		(1.8)		1.5
Settlements with tax authorities	(0.2)		0.3		2.0
Permanent differences and other	1.1		1.3		1.2
Provision for income taxes	16.9	%	11.4	%	14.9	%

Schedule of Components of Deferred Tax Assets and Liabilities

Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions):

	December 31,
	2024		2023
Deferred tax assets:
Capitalized research expenditures	$	292	$	225
Deferred revenue	102		76
Tax credits	45		43
Net operating loss carryforwards	400		435
Other accruals	34		38
Inventory items	24		23
Sales return/rebate reserve	53		42
Share-based compensation expense	16		15
Legal accrual	1		13
Lease liabilities	24		23
Valuation allowance	(404)		(422)
Total deferred tax assets	$	587	$	511
Deferred tax liabilities:
Depreciation and amortization	83		103
Unrealized gains and losses on securities and investments	22		11
Undistributed earnings	3		2
Right of use lease assets	19		19
Other	5		5
Total deferred tax liabilities	$	132	$	140
Net deferred tax assets	$	455	$	371

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

	Year ended December 31,
	2024		2023
Balance at beginning of year	$	17	$	7
Additions for tax positions related to the current year	14		11
Additions for tax positions related to prior years	—		—
Settlements for tax positions	—		—
Lapse of statutes	(1)		(1)
Balance at end of year	$	30	$	17