XML 62 R45.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components Of Earnings Before Income Taxes by Geographic Region | The following table sets forth the geographic split of earnings before income taxes:
| Year Ended
(In millions) | December 31
| 2020 |  | 2019 |  | 2018
United States | $ | 442 |  |  | $ | 756 |  |  | $ | 972 |
Foreign | 1,441 |  |  | 832 |  |  | 1,088 |
| $ | 1,883 |  |  | $ | 1,588 |  |  | $ | 2,060 |
Significant Components Of Income Taxes | Significant components of income taxes are as follows:
(In millions) | Year Ended December 31 |
| 2020 |  | 2019 |  | 2018 |
Current |  |  |  |  |  |
Federal | $ | (164) |  |  | $ | 37 |  |  | $ | 96 |  |
State | 4 |  |  | 11 |  |  | 25 |  |
Foreign | 186 |  |  | 181 |  |  | 171 |  |
Deferred |  |  |  |  |  |
Federal | 41 |  |  | 47 |  |  | (55) |  |
State | (10) |  |  | 1 |  |  | (16) |  |
Foreign | 44 |  |  | (68) |  |  | 24 |  |
| $ | 101 |  |  | $ | 209 |  |  | $ | 245 |  |
Significant Components Of Deferred Tax Liabilities And Assets | Significant components of deferred tax liabilities and assets are as follows:
| December 31, 2020 |  | December 31, 2019
| (In millions)
Deferred tax liabilities |  |  |
Property, plant, and equipment | $ | 903 |  |  | $ | 1,012 |
Intangibles | 334 |  |  | 286 |
Right of use assets | 223 |  |  | 220 |
Equity in earnings of affiliates | 64 |  |  | 72 |
Inventory reserves | 25 |  |  | 32 |
Debt exchange | 53 |  |  | 80 |
Reserves and other accruals | 195 |  |  | 20 |
Other | 173 |  |  | 109 |
| $ | 1,970 |  |  | $ | 1,831 |
Deferred tax assets |  |  |
Pension and postretirement benefits | $ | 163 |  |  | $ | 155 |
Lease liabilities | 227 |  |  | 225 |
Stock compensation | 80 |  |  | 62 |
Foreign tax loss carryforwards | 470 |  |  | 411 |
Capital loss carryforwards | 70 |  |  | 62 |
State tax attributes | 79 |  |  | 74 |
Reserves and other accruals | 42 |  |  | — |
Other | 136 |  |  | 147 |
Gross deferred tax assets | 1,267 |  |  | 1,136 |
Valuation allowances | (339) |  |  | (325) |
Net deferred tax assets | $ | 928 |  |  | $ | 811 |
Net deferred tax liabilities | $ | 1,042 |  |  | $ | 1,020 |
The net deferred tax liabilities are classified as follows: |  |  |
Noncurrent assets (foreign) | $ | 260 |  |  | $ | 174 |
Noncurrent liabilities | (957) |  |  | (969) |
Noncurrent liabilities (foreign) | (345) |  |  | (225) |
| $ | (1,042) |  |  | $ | (1,020) |
Reconciliation Of The Statutory Federal Income Tax Rate To The Company's Effective Tax Rate On Earnings | Reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate on earnings is as follows:
| Year Ended
| December 31
| 2020 |  | 2019 |  | 2018
Statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | (0.3) |  |  | 0.6 |  |  | 0.3 |
Foreign earnings taxed at rates other than the U.S. statutory rate | (4.5) |  |  | (0.9) |  |  | (1.5) |
Foreign currency effects/remeasurement | (1.1) |  |  | 0.7 |  |  | (1.9) |
Income tax adjustment to filed returns | (0.4) |  |  | 0.2 |  |  | (1.9) |
Tax benefit on U.S. biodiesel credits | (3.3) |  |  | (7.5) |  |  | (2.3) |
Tax benefit on U.S. railroad credits | (8.0) |  |  | (3.6) |  |  | — |
Tax on Global Intangible Low Taxed Income (GILTI) | 2.9 |  |  | 1.4 |  |  | 1.0 |
Tax benefit on Foreign Derived Intangible Income Deduction (FDII) | (0.1) |  |  | — |  |  | (1.0) |
U.S. tax reform impacts | (0.3) |  |  | 0.4 |  |  | (1.1) |
Other | (0.5) |  |  | 0.9 |  |  | (0.7) |
Effective income tax rate | 5.4 | % |  | 13.2 | % |  | 11.9 | %
Unrecognized Tax Benefits | The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2020 and 2019 as follows:
| Unrecognized Tax Benefits
| December 31, 2020 |  | December 31, 2019
| (In millions)
Beginning balance | $ | 130 |  |  | $ | 107 |
Additions related to current year’s tax positions | 2 |  |  | 8 |
Additions related to prior years’ tax positions | 37 |  |  | — |
Additions (adjustments) related to acquisitions | (1) |  |  | 32 |
Reductions related to prior years’ tax positions | (3) |  |  | (14) |
Reductions related to lapse of statute of limitations | (9) |  |  | (2) |
Settlements with tax authorities | (5) |  |  | (1) |
Ending balance | $ | 151 |  |  | $ | 130 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration