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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of the components of income before income taxes | The components of income before income taxes and the provision for income taxes for the years indicated are presented below:
|  | 2024 |  | 2023 |  | 2022
Income before income taxes: |  |  |  |  |  |
U.S. |  | $ | 396 |  |  | $ | 244 |  |  | $ | 111 |
Foreign |  | 535 |  |  | 595 |  |  | 557 |
Total income before income taxes |  | 931 |  |  | 839 |  |  | 668 |
Provision for income taxes: |  |  |  |  |  |
Current tax expense: |  |  |  |  |  |
U.S. federal |  | 31 |  |  | 6 |  |  | 8 |
State and local |  | 6 |  |  | 5 |  |  | 2 |
Foreign |  | 255 |  |  | 183 |  |  | 159 |
Total current tax expense |  | 292 |  |  | 194 |  |  | 169 |
Deferred tax expense (benefit): |  |  |  |  |  |
U.S. federal |  | 11 |  |  | — |  |  | 5 |
State and local |  | 2 |  |  | 1 |  |  | (1) |
Foreign |  | (28) |  |  | (7) |  |  | (7) |
Total deferred tax (benefit) |  | (15) |  |  | (6) |  |  | (3) |
Total provision for income taxes |  | $ | 277 |  |  | $ | 188 |  |  | $ | 166 |
Schedule of the tax effects of significant temporary difference | Significant temporary differences as of December 31, 2024 and 2023 are summarized as follows:
|  | 2024 |  | 2023
Deferred tax assets attributable to: |  |  |  |
Employee benefit accruals |  | $ | 31 |  |  | $ | 32 |
Pensions and postretirement plans |  | 9 |  |  | 16 |
Lease liabilities |  | 51 |  |  | 54 |
Bad debt |  | 3 |  |  | 5 |
Inventory reserve |  | 16 |  |  | 16 |
Net operating loss carryforwards |  | 51 |  |  | 58 |
Tax credit carryforwards |  | 7 |  |  | 5 |
Derivative contracts |  | — |  |  | 16 |
Uniform capitalization |  | 8 |  |  | 12 |
Equity method investments |  | 9 |  |  | 4 |
Other |  | 46 |  |  | 31 |
Total deferred tax assets |  | 231 |  |  | 249 |
Valuation allowances |  | (60) |  |  | (46) |
Net deferred tax assets |  | 171 |  |  | 203 |
Deferred tax liabilities attributable to: |  |  |  |
Property, plant and equipment |  | 161 |  |  | 184 |
Identified intangibles |  | 25 |  |  | 33 |
Right-of-use lease assets |  | 48 |  |  | 51 |
Foreign withholding and state taxes on unremitted earnings |  | 1 |  |  | 1 |
Goodwill |  | 38 |  |  | 35 |
Derivative contracts |  | 3 |  |  | — |
Total deferred tax liabilities |  | 276 |  |  | 304 |
Net deferred tax liabilities |  | $ | 105 |  |  | $ | 101 |
Schedule of reconciliation of US federal statutory tax rate to effective tax rate | A reconciliation of the U.S. federal statutory tax rate to our effective tax rate follows:
| 2024 |  | 2023 |  | 2022
Provision for tax at U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Tax rate difference on foreign income | 5.4 |  |  | 6.1 |  |  | 7.2 |
Foreign currency foreign exchange | 1.9 |  |  | (1.8) |  |  | (0.3) |
Inflation adjustments | (0.4) |  |  | (0.5) |  |  | (0.6) |
Tax benefit of intercompany financing | (0.3) |  |  | (0.4) |  |  | (0.4) |
U.S. international tax implications | 1.4 |  |  | 1.0 |  |  | 2.2 |
Valuation allowance in Argentina | — |  |  | — |  |  | — |
Favorable judgment on the treatment of credits and interest on indirect taxes | — |  |  | (0.2) |  |  | (0.3) |
Sale of our South Korea business | (1.6) |  |  | — |  |  | — |
Unfavorable judgement and related reserve on transfer pricing matters | 1.6 |  |  | — |  |  | — |
Valuation allowance on investments | 1.2 |  |  | — |  |  | — |
Foreign-derived intangible income (“FDII”) | (1.6) |  |  | (1.5) |  |  | (1.0) |
Brazil exclusion of certain tax incentives | (0.3) |  |  | (1.2) |  |  | (4.0) |
Other items, net | 1.5 |  |  | (0.1) |  |  | 1.1 |
Provision at effective tax rate | 29.8 | % |  | 22.4 | % |  | 24.9 | %
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for 2024 and 2023 were as follows:
|  | 2024 |  | 2023
Balance at January 1 |  | $ | 31 |  |  | $ | 30 |
Additions for tax positions related to prior years |  | 7 |  |  | 1 |
Reductions for tax positions related to prior years |  | (1) |  |  | (1) |
Additions based on tax positions related to the current year |  | 3 |  |  | 1 |
Balance at December 31 |  | $ | 40 |  |  | $ | 31 |

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