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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Earnings (losses) before income taxes by geographical area consisted of the following (in millions of dollars):

			For the Years Ended December 31,
			2020						2019						2018
U.S.			$	1,015					$	1,226					$	1,163
Foreign			(68)						(17)						(82)
Total			$	947					$	1,209					$	1,081

Schedule of Components of Income Tax Expense (Benefit)

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

			For the Years Ended December 31,
			2020						2019						2018
Current income tax expense:
U.S. Federal			$	119					$	199					$	166
U.S. State			28						44						32
Foreign			65						58						47
Total current			212						301						245
Deferred income tax expense			(20)						13						13
Total income tax expense			$	192					$	314					$	258

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) as of December 31, 2020 and 2019 were as follows (in millions of dollars):

			As of December 31,
			2020						2019
Deferred tax assets:
Inventory			$	14					$	4
Accrued expenses			93						86
Foreign operating loss carryforwards			45						67
Accrued employment-related benefits			37						49
Tax credit carryforward			25						22
Other			8						8
Deferred tax assets			222						236
Less valuation allowance			(53)						(72)
Deferred tax assets, net of valuation allowance			$	169					$	164
Deferred tax liabilities:
Property, buildings, equipment and other capital assets			(145)						(134)
Intangibles			(68)						(83)
Other			(10)						(12)
Deferred tax liabilities			(223)						(229)
Net deferred tax liability			$	(54)					$	(65)
The net deferred tax asset (liability) is classified as follows:
Noncurrent assets			$	14					$	11
Noncurrent liabilities (foreign)			(68)						(76)
Net deferred tax liability			$	(54)					$	(65)

Summary of Valuation Allowance Changes

The Company's valuation allowance changed as follows (in millions of dollars):

			For the Years Ended December 31,
			2020						2019
Balance at beginning of period			$	(72)					$	(72)
Increases primarily related to foreign NOLs			(16)						(9)
Releases related to foreign NOLs			—						10
Foreign subsidiaries tax impacts due to divestiture			39						—
Other changes, net			(2)						—
Increase related to U.S. foreign tax credits			(2)						(1)
Balance at end of period			$	(53)					$	(72)

Reconciliation of Income Tax Statutory Rate

A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in millions of dollars):

			For the Years Ended December 31,
			2020						2019						2018
Federal income tax			$	199					$	254					$	227
State income taxes, net of federal income tax benefit			33						36						32
Clean energy credit			—						—						(20)
Foreign rate difference			23						25						20
Foreign subsidiaries tax impacts due to divestiture			(61)						—						20
Change in valuation allowance			16						11						4
Excess tax benefits from stock-based compensation			(4)						(2)						(15)
Other - net			(14)						(10)						(10)
Income tax expense			$	192					$	314					$	258
Effective tax rate			20.3		%				26.0		%				23.9		%

Reconciliation of Income Tax Contingencies

The changes in the liability for tax uncertainties, excluding interest, are as follows (in millions of dollars):

			For the Years Ended December 31,
			2020						2019						2018
Balance at beginning of year			$	28					$	37					$	45
Additions for tax positions related to the current year			23						3						4
Additions for tax positions of prior years			—						1						3
Reductions for tax positions of prior years			(2)						(1)						(5)
Reductions due to statute lapse			(10)						(10)						(9)
Settlements, audit payments, refunds - net			—						(2)						(1)
Balance at end of year			$	39					$	28					$	37

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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