Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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