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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income before income taxes were as follows:
| 2020 |  | 2019 |  | 2018
U.S. | $ | 93 |  |  | $ | (3) |  |  | $ | 21 |
Foreign | 833 |  |  | 789 |  |  | 719 |
| $ | 926 |  |  | $ | 786 |  |  | $ | 740 |
The provision for income taxes consisted of the following:
| 2020 |  | 2019 |  | 2018
Current tax: |  |  |  |  |
U.S. federal | $ | — |  |  | $ | (1) |  |  | $ | (2) |
State and foreign | 211 |  |  | 202 |  |  | 183 |
| $ | 211 |  |  | $ | 201 |  |  | $ | 181 |
Deferred tax: |  |  |  |  |
U.S. federal | $ | 37 |  |  | $ | 16 |  |  | $ | 31 |
State and foreign | (4) |  |  | (51) |  |  | 4 |
| 33 |  |  | (35) |  |  | 35 |
Total | $ | 244 |  |  | $ | 166 |  |  | $ | 216 |
The provision for income taxes differs from the amount of income tax determined by applying the U.S. statutory federal income tax rate to pre-tax income as a result of the following items:
| 2020 |  | 2019 |  | 2018 |  |  |  |
U.S. statutory rate at 21% | $ | 194 |  |  | $ | 166 |  |  | $ | 155 |  |  |  |  |
Tax on foreign income | 30 |  |  | 7 |  |  | 30 |  |  |  |  |
U.S. taxes on foreign income, net of credits | 14 |  |  | 15 |  |  | 24 |  |  |  |  |
Valuation allowance changes | (11) |  |  | (33) |  |  | (1) |  |  |  |  |
Tax contingencies | 1 |  |  | 19 |  |  | (2) |  |  |  |  |
Tax law changes | 4 |  |  | (11) |  |  | 4 |  |  |  |  |
Other items, net | 12 |  |  | 3 |  |  | 6 |  |  |  |  |
Income tax provision | $ | 244 |  |  | $ | 166 |  |  | $ | 216 |  |  |  |  |
The Company benefits from certain incentives in Brazil which allow it to pay reduced income taxes. The incentives expire at various dates beginning in December 2025. These incentives increased net income attributable to the Company by $17 in both 2020 and 2019 and $14 in 2018. The Company paid taxes of $189, $173 and $177 in 2020, 2019 and 2018. In 2019, the Company recorded an income tax benefit of $36 related to a deferred tax valuation allowance release resulting from an internal reorganization. Additionally, the Company recorded a charge of $15 related to the settlement of a pre-acquisition tax contingency that arose from a transaction that occurred prior to its acquisition of Signode in 2018. The Company also recorded a benefit of $9 arising from tax law changes in India. In 2018, the Company recorded a charge of $24 related to local taxes on the distributions of foreign earnings, which were previously asserted to be indefinitely reinvested. As of December 31, 2020 the Company has not provided deferred taxes on approximately $1,500 of earnings in certain non-U.S. subsidiaries because such earnings are indefinitely reinvested in its international operations. Upon distribution of such earnings in the form of dividends or otherwise, the Company may be subject to incremental foreign tax. It is not practicable to estimate the amount of foreign tax that might be payable. The components of deferred taxes at December 31 were:
| 2020 |  | 2019
| Assets |  | Liabilities |  | Assets |  | Liabilities
Tax carryforwards | $ | 433 |  |  | $ | — |  |  | $ | 512 |  |  | $ | — |
Postretirement and postemployment benefits | 39 |  |  | — |  |  | 40 |  |  | — |
Pensions | 139 |  |  | 101 |  |  | 176 |  |  | 124 |
Property, plant and equipment | 29 |  |  | 172 |  |  | 23 |  |  | 174 |
Intangible assets | — |  |  | 385 |  |  | — |  |  | 401 |
Asbestos | 61 |  |  | — |  |  | 66 |  |  | — |
Accruals and other | 102 |  |  | 92 |  |  | 88 |  |  | 90 |
Right of use assets | — |  |  | 42 |  |  | — |  |  | 30 |
Lease liabilities | 43 |  |  | — |  |  | 30 |  |  | — |
Valuation allowances | (205) |  |  | — |  |  | (243) |  |  | — |
Total | $ | 641 |  |  | $ | 792 |  |  | $ | 692 |  |  | $ | 819 |
Tax carryforwards expire as follows:
Year |  | Amount
2021 |  | $ | 20 |
2022 |  | 75 |
2023 |  | 12 |
2024 |  | 13 |
2025 |  | 27 |
Thereafter |  | 141 |
Unlimited |  | 145 |
Tax carryforwards expiring in 2022 include $63 of U.S. federal foreign tax credits which, based on current projections, the Company believes it will utilize before expiration. Tax carryforwards expiring after 2025 include $115 of U.S. state tax loss carryforwards. The unlimited category includes $39 of Luxembourg tax loss carryforwards and $69 of French tax loss carryforwards. Realization of any portion of the Company’s deferred tax assets is dependent upon the availability of taxable income in the relevant jurisdictions. The Company considers all sources of taxable income, including (i) taxable income in any available carry back period, (ii) the reversal of taxable temporary differences, (iii) tax-planning strategies, and (iv) taxable income expected to be generated in the future other than from reversing temporary differences. The Company also considers whether there have been cumulative losses in recent years. The Company records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s valuation allowances at December 31, 2020 includes $171 primarily related to the portion of U.S. state tax loss carryforwards that the Company does not believe are more likely than not to be utilized prior to their expiration. The Company’s ability to utilize state tax loss carryforwards is impacted by several factors including taxable income, expiration dates, limitations imposed by certain states on the amount of loss carryforwards that can be used in a given year to offset taxable income and whether the state permits the Company to file a combined return. Management’s estimate of the appropriate valuation allowance in any jurisdiction involves a number of assumptions and judgments, including the amount and timing of future taxable income. Should future results differ from management’s estimates, it is possible there could be future adjustments to the valuation allowances that would result in an increase or decrease in tax expense in the period such changes in estimates are made. A reconciliation of unrecognized tax benefits follows:
| 2020 |  | 2019 |  | 2018
Balance at January 1 | $ | 41 |  |  | $ | 37 |  |  | $ | 29 |
Additions related to acquisitions | — |  |  | — |  |  | 13 |
Additions for prior year tax positions | 1 |  |  | 20 |  |  | 1 |
Lapse of statute of limitations | — |  |  | (1) |  |  | (3) |
Settlements | — |  |  | (15) |  |  | (2) |
Foreign currency translation | 2 |  |  | — |  |  | (1) |
Balance at December 31 | $ | 44 |  |  | $ | 41 |  |  | $ | 37 |
The Company’s unrecognized tax benefits include potential liabilities related to transfer pricing, foreign withholding taxes, and non-deductibility of expenses and exclude $2 of interest and penalties as of December 31, 2020. The total interest and penalties recorded in income tax expense was less than $1 in 2020, 2019 and 2018. As of December 31, 2020, unrecognized tax benefits of $44, if recognized, would affect the Company's effective tax rate. The Company’s unrecognized tax benefits are not expected to increase over the next twelve months and are expected to decrease as open tax years lapse or claims are settled. The Company is unable to estimate a range of reasonably possible changes in its unrecognized tax benefits in the next twelve months as it is unable to predict when, or if, the tax authorities will commence their audits, the time needed for the audits, and the audit findings that will require settlement with the applicable tax authorities, if any. The tax years that remained subject to examination by major tax jurisdictions as of December 31, 2020 were, 2010 and subsequent years for Germany; 2013 and subsequent years for India; 2015 and subsequent years for Italy, Mexico and Spain; 2016 and subsequent years for the Brazil, France and the U.K. and 2017 and subsequent years for the Canada and the U.S. In addition, tax authorities in certain jurisdictions, including France and the U.S., may examine earlier years when tax carryforwards that were generated in those years are subsequently utilized.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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