XML 36 R19.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Taxes |
Taxes | NOTE 10 – Income Taxes ​ The components of income before income taxes and the provision for income taxes for the years indicated are shown below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(in millions) |  | 2021 |  | 2020 |  | 2019 |
Income before income taxes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. | ​ | $ | 39 | ​ | $ | (15) | ​ | $ | 74 | ​
Foreign | ​ | ​ | 209 | ​ | ​ | 521 | ​ | ​ | 508 | ​
Total income before income taxes | ​ | ​ | 248 | ​ | ​ | 506 | ​ | ​ | 582 | ​
Provision for income taxes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current tax (benefit) expense: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. federal | ​ | ​ | 2 | ​ | ​ | 1 | ​ | ​ | 6 | ​
State and local | ​ | ​ | 2 | ​ | ​ | 2 | ​ | ​ | 2 | ​
Foreign | ​ | ​ | 180 | ​ | ​ | 156 | ​ | ​ | 147 | ​
Total current tax expense | ​ | ​ | 184 | ​ | ​ | 159 | ​ | ​ | 155 | ​
Deferred tax expense (benefit): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. federal | ​ | ​ | (57) | ​ | ​ | (18) | ​ | ​ | (8) | ​
State and local | ​ | ​ | (2) | ​ | ​ | (1) | ​ | ​ | — | ​
Foreign | ​ | ​ | (2) | ​ | ​ | 12 | ​ | ​ | 11 | ​
Total deferred tax expense (benefit) | ​ | ​ | (61) | ​ | ​ | (7) | ​ | ​ | 3 | ​
Total provision for income taxes | ​ | $ | 123 | ​ | $ | 152 | ​ | $ | 158 | ​
​ Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting basis and tax basis of assets and liabilities. Significant temporary differences as of December 31, 2021 and 2020, are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(in millions) |  | 2021 |  | 2020 |
Deferred tax assets attributable to: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Employee benefit accruals | ​ | $ | 28 | ​ | $ | 20 | ​
Pensions and postretirement plans | ​ | ​ | 14 | ​ | ​ | 21 | ​
Lease liabilities | ​ | ​ | 49 | ​ | ​ | 44 | ​
Bad debt | ​ | ​ | 14 | ​ | ​ | 2 | ​
Inventory reserve | ​ | ​ | 13 | ​ | ​ | 9 | ​
Net operating loss carryforwards | ​ | ​ | 64 | ​ | ​ | 32 | ​
Tax credit carryforwards | ​ | ​ | 18 | ​ | ​ | 11 | ​
Other | ​ | ​ | 36 | ​ | ​ | 43 | ​
Total deferred tax assets | ​ | ​ | 236 | ​ | ​ | 182 | ​
Valuation allowances | ​ | ​ | (67) | ​ | ​ | (30) | ​
Net deferred tax assets | ​ | ​ | 169 | ​ | ​ | 152 | ​
Deferred tax liabilities attributable to: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property, plant and equipment | ​ | ​ | 175 | ​ | ​ | 173 | ​
Identified intangibles | ​ | ​ | 47 | ​ | ​ | 46 | ​
Right-of-use lease assets | ​ | ​ | 46 | ​ | ​ | 42 | ​
Foreign withholding and state taxes on unremitted earnings | ​ | ​ | 1 | ​ | ​ | 31 | ​
Goodwill | ​ | ​ | 27 | ​ | ​ | 20 | ​
Brazilian indirect tax credits | ​ | ​ | 5 | ​ | ​ | 18 | ​
Derivative contracts | ​ | ​ | 19 | ​ | ​ | 16 | ​
Total deferred tax liabilities | ​ | ​ | 320 | ​ | ​ | 346 | ​
Net deferred tax liabilities | ​ | $ | 151 | ​ | $ | 194 | ​
​ Of the $64 million of tax-effected net operating loss carryforwards as of December 31, 2021, $5 million and $14 million are for U.S. federal and state loss carryforwards, respectively and $45 million are for foreign loss carryforwards. U.S. federal and state loss carryforwards have various expiration periods starting in 2024. Of the $45 million of foreign loss carryforwards, $17 million are related to Canada, $9 million to Argentina and $8 million to Australia with carryforward periods of 20 years, 5 years and indefinite, respectively. ​ A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Prior to establishing a valuation allowance, we consider historical taxable income, scheduled reversal of deferred tax liabilities, tax planning strategies, tax carryovers and projected future taxable income. As of December 31, 2021, Ingredion maintained valuation allowances of $5 million and $14 million for U.S. federal and state loss carryforwards, respectively and $32 million for foreign loss carryforwards. Ingredion also maintained valuation allowances of $6 million for state credits and carryforwards, $1 million for certain foreign tax credits and $9 million on foreign subsidiaries’ net deferred tax assets including other carryforwards, all of which we have determined will more likely than not expire prior to realization. ​ Net operating loss carryforwards disclosed in the financial statements differ from the as-filed tax returns due to an unrecognized tax benefit. Foreign net operating loss carryforwards and valuation allowances would increase $11 million, absent the unrecognized tax benefit. ​ A reconciliation of the U.S. federal statutory tax rate to Ingredion’s effective tax rate follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2021 |  | 2020 |  | 2019 |
Provision for tax at U.S. statutory rate | ​ | 21.0 | % | 21.0 | % | 21.0 | %
Tax rate difference on foreign income | ​ | 13.3 | ​ | 9.1 | ​ | 6.2 | ​
Foreign currency FX | ​ | 3.2 | ​ | 1.2 | ​ | (0.2) | ​
Inflation adjustments | ​ | (4.0) | ​ | (0.8) | ​ | (0.3) | ​
Tax benefit of intercompany financing | ​ | (1.6) | ​ | (0.8) | ​ | (1.2) | ​
U.S. international tax implications | ​ | 0.8 | ​ | 0.6 | ​ | 2.2 | ​
Valuation allowance in Argentina | ​ | (0.4) | ​ | (0.6) | ​ | 0.3 | ​
Favorable judgment on the treatment of credits and interest on indirect taxes | ​ | (4.8) | ​ | (0.6) | ​ | — | ​
Unremitted earnings | ​ | (12.1) | ​ | — | ​ | — | ​
Impairment charge related to Accor joint venture | ​ | 35.5 | ​ | — | ​ | — | ​
Other items, net | ​ | (1.3) | ​ | 0.9 | ​ | (0.9) | ​
Provision at effective tax rate | ​ | 49.6 | % | 30.0 | % | 27.1 | %
​ Ingredion has significant operations in Mexico, Pakistan and Colombia, where the 2021 statutory tax rates are 30 percent, 29 percent and 31 percent, respectively. In addition, Ingredion's subsidiary in Brazil has a statutory tax rate of 34 percent before the application of local incentives that vary each year. ​ During 2021 Ingredion Brazil received favorable judgments related to the taxability of interest earned on indirect tax credits (discussed in Note 14) and interest paid on previously recovered tax credits. In addition, Ingredion Brazil recovered income taxes paid on government subsidies. These items resulted in a tax benefit of $12 million or 4.8 percentage points on the effective tax rate for 2021. ​ Ingredion recorded a $340 million impairment charge during 2021 for the net assets contributed to the Arcor joint venture (discussed in Note 5). No tax benefit was recorded for this impairment resulting in a 35.5 percentage point increase in the effective tax rate for 2021. ​ During 2021 Ingredion reversed an accrual for unremitted earnings due to restructuring and recorded a tax benefit of $30 million or 12.1 percentage points on the effective rate. As of December 31, 2021, the remaining balance was a $1 million accrual for foreign withholding on certain unremitted earnings from foreign subsidiaries. No foreign withholding taxes, federal and state taxes or foreign currency gains/losses have been provided on distributions of approximately $2.2 billion of unremitted earnings of Ingredion’s foreign subsidiaries, as such amounts are considered permanently reinvested. It is not practicable to estimate the additional income taxes, including applicable foreign withholding taxes that would be due upon the repatriation of these earnings. ​ A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for 2021 and 2020 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(in millions) | ​ | 2021 |  | 2020 |
Balance at January 1 | ​ | $ | 46 | ​ | $ | 22 | ​
Additions for tax positions related to prior years | ​ | ​ | 2 | ​ | ​ | 33 | ​
Reductions for tax positions related to prior years | ​ | ​ | (9) | ​ | ​ | — | ​
Additions based on tax positions related to the current year | ​ | ​ | 2 | ​ | ​ | — | ​
Reductions related to a lapse in the statute of limitations | ​ | ​ | (12) | ​ | ​ | (9) | ​
Balance at December 31 | ​ | $ | 29 | ​ | $ | 46 | ​
​ Of the $29 million of unrecognized tax benefits as of December 31, 2021, $18 million represents the amount that, if recognized, could affect the effective tax rate in future periods. The remaining $11 million includes an offset for net operating loss carryforwards that would have otherwise had a valuation allowance. ​ Ingredion accounts for interest and penalties related to income tax matters within the provision for income taxes. Ingredion has accrued $3 million of interest expense and penalties related to the unrecognized tax benefits as of December 31, 2021. ​ Ingredion is subject to U.S. federal income tax as well as income tax in multiple states and non-U.S. jurisdictions. The U.S. federal tax returns are subject to audit for the years 2017 through 2020. In general, Ingredion’s foreign subsidiaries remain subject to audit for years 2010 and later. ​ It is reasonably possible that the total amount of unrecognized tax benefits including interest and penalties will increase or decrease within 12 months of December 31, 2021. Ingredion believes it is reasonably possible that none of the unrecognized tax benefits may be recognized within 12 months of December 31, 2021, as a result of a lapse of the statute of limitations. Ingredion has classified none of the unrecognized tax benefits as current because they are not expected to be resolved within the next 12 months.

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 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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration