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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Earnings before Income Taxes | Earnings before income taxes consisted of the following:
| December 31,
(DOLLARS IN MILLIONS) | 2021 |  | 2020 |  | 2019
U.S. loss before taxes | $ | (493) |  |  | $ | (142) |  |  | $ | (110) |
Foreign income before taxes | 847 |  |  | 583 |  |  | 667 |
Total income before taxes | $ | 354 |  |  | $ | 441 |  |  | $ | 557 |
Schedule of Income Tax Provision | The income tax provision consisted of the following:
| December 31,
(DOLLARS IN MILLIONS) | 2021 |  | 2020 |  | 2019
Current tax provision |  |  |  |  |
Federal | $ | (5) |  |  | $ | (9) |  |  | $ | 10 |
State and local | 13 |  |  | 1 |  |  | — |
Foreign | 303 |  |  | 150 |  |  | 146 |
Total current tax provision | 311 |  |  | 142 |  |  | 156 |
Deferred tax provision |  |  |  |  |
Federal | (121) |  |  | (8) |  |  | (41) |
State and local | (34) |  |  | (2) |  |  | 8 |
Foreign | (81) |  |  | (58) |  |  | (26) |
Total deferred tax benefit | (236) |  |  | (68) |  |  | (59) |
Total provision for income taxes | $ | 75 |  |  | $ | 74 |  |  | $ | 97 |
Schedule of Reconciliation between U.S. Federal Statutory Income Tax Rate to Actual Effective Tax Rate | Reconciliation between the U.S. federal statutory income tax rate to the actual effective tax rate was as follows:
| December 31,
| 2021 |  | 2020 |  | 2019
Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Difference in effective tax rate on foreign earnings and remittances(1) | 8.0 |  |  | (6.9) |  |  | (6.8) |
Tax benefit from supply chain optimization | (5.8) |  |  | (5.0) |  |  | (1.0) |
Unrecognized tax benefit, net of reversals | 0.7 |  |  | 5.7 |  |  | 3.4 |
Tax impact on gains on business disposal | 4.0 |  |  | — |  |  | — |
Deferred taxes on deemed repatriation | 2.7 |  |  | (0.2) |  |  | 0.8 |
Global intangible low-taxed income | 4.1 |  |  | 5.3 |  |  | — |
Foreign-derived intangible income | (1.6) |  |  | (0.3) |  |  | (0.3) |
U.S. foreign tax credit - general limitation | (3.1) |  |  | (1.9) |  |  | (1.2) |
Research and development credit | (1.4) |  |  | (1.0) |  |  | (0.9) |
Acquisition costs | 2.4 |  |  | 1.0 |  |  | 0.5 |
Establishment (release) of valuation allowance on state deferred | (3.0) |  |  | (0.4) |  |  | 1.7 |
State and local taxes | (4.8) |  |  | (0.6) |  |  | (0.8) |
Other, net | (2.0) |  |  | 0.1 |  |  | 1.0 |
Effective tax rate | 21.2 | % |  | 16.8 | % |  | 17.4 | %
_______________________ (1)For 2021, the rate includes rate change impacts related to the Netherlands and United Kingdom.
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities consisted of the following amounts:
| December 31,
(DOLLARS IN MILLIONS) | 2021 |  | 2020
Employee and retiree benefits | $ | 148 |  |  | $ | 108 |
Credit and net operating loss carryforwards | 312 |  |  | 271 |
Intangible assets | — |  |  | 10 |
Amortizable research and development expenses | 42 |  |  | 30 |
Gain on foreign currency translation | — |  |  | 46 |
Interest limitation | 43 |  |  | 51 |
Inventory | 32 |  |  | 14 |
Lease obligations | 189 |  |  | 53 |
Other, net | 79 |  |  | 23 |
Gross deferred tax assets | 845 |  |  | 606 |
Property, plant and equipment, net | (265) |  |  | (60) |
Intangible assets | (2,486) |  |  | (586) |
Right-of-use assets | (187) |  |  | (53) |
Loss on foreign currency translation | (30) |  |  | — |
Deferred taxes on deemed repatriation | (81) |  |  | (46) |
Gross deferred tax liabilities | (3,049) |  |  | (745) |
Valuation allowance | (232) |  |  | (257) |
Total net deferred tax liabilities | $ | (2,436) |  |  | $ | (396) |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| December 31,
(DOLLARS IN MILLIONS) | 2021 |  | 2020 |  | 2019
Balance of unrecognized tax benefits at beginning of year | $ | 99 |  |  | $ | 75 |  |  | $ | 51 |
Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year(1) | 42 |  |  | 11 |  |  | 20 |
Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year | (3) |  |  | — |  |  | (2) |
Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year | 5 |  |  | 24 |  |  | 13 |
The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities | (1) |  |  | (2) |  |  | (3) |
Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation | (12) |  |  | (9) |  |  | (4) |
Balance of unrecognized tax benefits at end of year | $ | 130 |  |  | $ | 99 |  |  | $ | 75 |
_______________________ (1)For 2021, the amount includes positions related to N&B opening balance sheet amounts.

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