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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Earnings before Income Taxes

Earnings before income taxes consisted of the following:

			December 31,
(DOLLARS IN MILLIONS)			2022						2021						2020
U.S. loss before taxes			$	(1,918)					$	(493)					$	(142)
Foreign income before taxes			293						847						583
Total (loss) income before taxes			$	(1,625)					$	354					$	441

Schedule of Income Tax Provision

The income tax provision consisted of the following:

			December 31,
(DOLLARS IN MILLIONS)			2022						2021						2020
Current tax provision
Federal			$	102					$	(5)					$	(9)
State and local			49						13						1
Foreign			325						303						150
Total current tax provision			476						311						142
Deferred tax provision
Federal			(77)						(121)						(8)
State and local			(111)						(34)						(2)
Foreign			(49)						(81)						(58)
Total deferred tax benefit			(237)						(236)						(68)
Total provision for income taxes			$	239					$	75					$	74

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,
			2022						2021						2020
Statutory tax rate			21.0		%				21.0		%				21.0		%
Tax effect of non-deductible goodwill impairment			(29.1)						—						—
Difference in effective tax rate on foreign earnings and remittances(1)			—						8.0						(6.9)
Tax benefit from supply chain optimization			0.8						(5.8)						(5.0)
Unrecognized tax benefit, net of reversals			0.9						0.7						5.7
Tax impact on gains on business disposal			(5.9)						4.0						—
Deferred taxes on deemed repatriation(2)			(5.6)						2.7						(0.2)
Global intangible low-taxed income			(0.8)						4.1						5.3
Foreign-derived intangible income			1.1						(1.6)						(0.3)
U.S. foreign tax credit - general limitation			0.1						(3.1)						(1.9)
Research and development credit			0.8						(1.4)						(1.0)
Acquisition costs			—						2.4						1.0
Establishment (release) of valuation allowance on state deferred			—						(3.0)						(0.4)
State and local taxes including rate changes(3)			4.3						(4.8)						(0.6)
Other, net			(2.3)						(2.0)						0.1
Effective tax rate			(14.7)		%				21.2		%				16.8		%

_______________________

(1)For 2021, the rate includes rate change impacts related to the Netherlands and United Kingdom.

(2)For 2022, the rate includes establishment of the “held for sale” deferred tax liabilities due to a change in assertion.

(3)For 2022, the rate includes rate change impacts related to the remeasurement of the state tax rate on deferred taxes.

Schedule of Deferred Tax Assets and Liabilities

The deferred tax assets and liabilities consisted of the following amounts:

			December 31,
(DOLLARS IN MILLIONS)			2022						2021
Employee and retiree benefits			$	61					$	148
Credit and net operating loss carryforwards			315						312
Amortizable research and development expenses			84						42
Interest limitation			3						43
Inventory			19						32
Lease obligations			151						189
Other, net			140						79
Gross deferred tax assets			773						845
Property, plant and equipment, net			(229)						(265)
Intangible assets(1)			(2,049)						(2,486)
Right-of-use assets			(151)						(187)
Loss on foreign currency translation			(23)						(30)
Deferred taxes on deemed repatriation			(166)						(81)
Gross deferred tax liabilities			(2,618)						(3,049)
Valuation allowance			(262)						(232)
Total net deferred tax liabilities			$	(2,107)					$	(2,436)

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)			2022						2021						2020
Balance of unrecognized tax benefits at beginning of year			$	130					$	99					$	75
Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year(1)			1						42						11
Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year			(18)						(3)						—
Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year			31						5						24
The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities			(27)						(1)						(2)
Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation			(5)						(12)						(9)
Balance of unrecognized tax benefits at end of year			$	112					$	130					$	99

_______________________

(1)For 2021, the amount includes positions related to N&B opening balance sheet amounts.

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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.

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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 of income before income tax between domestic and foreign jurisdictions.

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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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