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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components Of Pretax Income | The components of net income before income tax expense in consolidated entities for the years ended December 31, 2022, 2021 and 2020 are as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
United States | $ | (207) |  |  | $ | (214) |  |  | $ | (54) |
Brazil | 259 |  |  | 189 |  |  | 79 |
Argentina | 699 |  |  | 389 |  |  | 185 |
Mexico | 74 |  |  | (130) |  |  | (134) |
Other Countries | (45) |  |  | 7 |  |  | 5 |
| $ | 780 |  |  | $ | 241 |  |  | $ | 81 |
Summary Of Income / Asset Tax Expense | Income tax is composed of the following:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Income Tax: |  |  |  |  |
Current: |  |  |  |  |
U.S. | $ | 12 |  |  | $ | — |  |  | $ | — |
Non-U.S. | 383 |  |  | 178 |  |  | 152 |
| 395 |  |  | 178 |  |  | 152 |
Deferred: |  |  |  |  |
U.S. | 55 |  |  | (3) |  |  | (5) |
Non-U.S. | (152) |  |  | (26) |  |  | (65) |
| (97) |  |  | (29) |  |  | (70) |
Income tax expense | $ | 298 |  |  | $ | 149 |  |  | $ | 82 |
Reconciliation Of Difference Between Actual Provision For Income Taxes And Provision Computed By Applying Income Tax Rate | The following is a reconciliation of the difference between the actual charge for income taxes and the expected income tax expense computed by applying the statutory income tax rate for the years ended December 31, 2022, 2021 and 2020 to income before taxes:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Net income before income tax | $ | 780 |  |  | $ | 241 |  |  | $ | 81 |
Income tax rate | 21 | % |  | 21 | % |  | 21 | %
Expected income tax expense | $ | 164 |  |  | $ | 51 |  |  | $ | 17 |
Permanent differences: |  |  |  |  |
Transfer pricing adjustments | 3 |  |  | 2 |  |  | 1 |
Non-deductible tax | 1 |  |  | 4 |  |  | 3 |
Non-deductible expenses | 54 |  |  | 29 |  |  | 18 |
Dividend distributions | 12 |  |  | 36 |  |  | 9 |
Non-taxable income | (62) |  |  | (32) |  |  | (4) |
Effect of rates different than statutory | 37 |  |  | 8 |  |  | (4) |
Currency translation | 48 |  |  | 16 |  |  | 12 |
Change in valuation allowance | 92 |  |  | 56 |  |  | 41 |
Tax Inflation Adjustments | (35) |  |  | (19) |  |  | (7) |
Inventory Adjustments | — |  |  | (1) |  |  | — |
True up | (16) |  |  | (1) |  |  | (4) |
Income tax expense | $ | 298 |  |  | $ | 149 |  |  | $ | 82 |
Composition Of Deferred Tax Assets And Liabilities | The following table summarizes the composition of deferred tax assets and liabilities for the years ended December 31, 2022 and 2021:
| December 31,
| 2022 |  | 2021
| (In millions)
Deferred tax assets |  |  |
Allowance for doubtful accounts | $ | 110 |  |  | $ | 65 |
Unrealized net gains | 8 |  |  | 2 |
Property and equipment, net | 43 |  |  | 27 |
Accounts payable and accrued expenses | 17 |  |  | 11 |
Payroll and social security payable | 32 |  |  | 28 |
Foreign exchange effect | — |  |  | 7 |
Provisions | 131 |  |  | 89 |
U.S. foreign tax credit | 156 |  |  | 50 |
Tax loss carryforwards | 255 |  |  | 194 |
Inventories | 3 |  |  | 2 |
Tax inflation adjustments | 3 |  |  | 7 |
Total deferred tax assets | 758 |  |  | 482 |
Valuation allowance | (360) |  |  | (262) |
Total deferred tax assets, net | 398 |  |  | 220 |
Deferred tax liabilities |  |  |
Property and equipment, net | (29) |  |  | (18) |
Customer lists | (1) |  |  | (1) |
Unrealized net losses | (3) |  |  | (2) |
Goodwill | (4) |  |  | (3) |
Convertible notes and Capped Call | — |  |  | (26) |
Accounts payable and accrued expenses | (3) |  |  | (3) |
Payroll and social security payable | (7) |  |  | (7) |
Outside Basis Dividends | (103) |  |  | (36) |
Provisions | (8) |  |  | (5) |
Total deferred tax liabilities | $ | (158) |  |  | $ | (101) |
| $ | 240 |  |  | $ | 119 |
Summary of Valuation Allowance | The following table summarizes the tax valuation allowance activity during the years ended December 31, 2022, 2021 and 2020:
Tax valuation allowance | Balance at beginning of year |  | Charged/(credited) to Net income |  | Charges Utilized/ Currency translation adjustments and other adjustments |  | Balance at end of year
| (In millions)
Year ended December 31, 2020 | $ | 139 |  |  | $ | 41 |  |  | $ | (1) |  |  | $ | 179 |
Year ended December 31, 2021 | 179 |  |  | 56 |  |  | 27 |  |  | 262 |
Year ended December 31, 2022 | 262 |  |  | 92 |  |  | 6 |  |  | 360 |
Tax Loss Carryforwards | As of December 31, 2022, consolidated deferred tax asset on tax loss carryforwards for income tax purposes were $255 million. If not utilized, tax loss carryforwards will begin to expire as follows:
2026 | $ | 2 |
2027 | 13 |
2028 | 29 |
Thereafter | 131 |
Without due dates | 80 |
Total | $ | 255 |

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