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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes | Components of earnings before income taxes and the provision for U.S. and other income taxes from operations follow:
| For years ended December 31,
(Dollars in millions) | 2020 |  | 2019 |  | 2018
Earnings before income taxes |  |  |  |  |
United States | $ | 164 |  |  | $ | 454 |  |  | $ | 718 |
Outside the United States | 366 |  |  | 448 |  |  | 592 |
Total | $ | 530 |  |  | $ | 902 |  |  | $ | 1,310 |
Provision for income taxes |  |  |  |  |
United States Federal |  |  |  |  |
Current | $ | 70 |  |  | $ | 55 |  |  | $ | 161 |
Deferred | (96) |  |  | 19 |  |  | (11) |
Outside the United States |  |  |  |  |
Current | 77 |  |  | 62 |  |  | 86 |
Deferred | (14) |  |  | (32) |  |  | (22) |
State and other |  |  |  |  |
Current | 5 |  |  | — |  |  | 30 |
Deferred | (1) |  |  | 36 |  |  | (18) |
Total | $ | 41 |  |  | $ | 140 |  |  | $ | 226 |
Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss | The following represents the deferred tax (benefit) charge recorded as a component of "Accumulated other comprehensive income (loss)" ("AOCI") in the Consolidated Statements of Financial Position:
| For years ended December 31,
(Dollars in millions) | 2020 |  | 2019 |  | 2018
Defined benefit pension and other postretirement benefit plans | $ | (7) |  |  | $ | (10) |  |  | $ | (10) |
Derivatives and hedging | (4) |  |  | (2) |  |  | 3 |
Total | $ | (11) |  |  | $ | (12) |  |  | $ | (7) |
Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement | Total income tax expense (benefit) included in the consolidated financial statements was composed of the following:
| For years ended December 31,
(Dollars in millions) | 2020 |  | 2019 |  | 2018
Earnings before income taxes | $ | 41 |  |  | $ | 140 |  |  | $ | 226 |
Other comprehensive income | (11) |  |  | (12) |  |  | (7) |
Total | $ | 30 |  |  | $ | 128 |  |  | $ | 219 |
Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate | Differences between the provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow:
| For years ended December 31,
(Dollars in millions) | 2020 |  | 2019 |  | 2018
Amount computed using the statutory rate | $ | 109 |  |  | $ | 189 |  |  | $ | 274 |
State income taxes, net | 2 |  |  | 36 |  |  | 6 |
Foreign rate variance | (49) |  |  | (68) |  |  | (52) |
Change in reserves for tax contingencies | 4 |  |  | 36 |  |  | 21 |
General business credits | (39) |  |  | (52) |  |  | (60) |
U.S. tax on foreign earnings | 13 |  |  | (17) |  |  | 10 |
Foreign tax credits | — |  |  | — |  |  | (12) |
Tax law changes and tax loss from outside-U.S. entity reorganizations | — |  |  | 7 |  |  | 20 |
Other | 1 |  |  | 9 |  |  | 19 |
Provision for income taxes | $ | 41 |  |  | $ | 140 |  |  | $ | 226 |
Effective income tax rate | 8 | % |  | 16 | % |  | 17 | %
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities follow:
| December 31,
(Dollars in millions) | 2020 |  | 2019
Deferred tax assets |  |  |
Post-employment obligations | $ | 280 |  |  | $ | 247 |
Net operating loss carryforwards | 619 |  |  | 606 |
Tax credit carryforwards | 216 |  |  | 239 |
Environmental contingencies | 68 |  |  | 68 |
Unrealized derivative loss | 22 |  |  | 18 |
Other | 213 |  |  | 173 |
Total deferred tax assets | 1,418 |  |  | 1,351 |
Less: Valuation allowance | 393 |  |  | 453 |
Deferred tax assets less valuation allowance | $ | 1,025 |  |  | $ | 898 |
Deferred tax liabilities |  |  |
Property, plant, and equipment | $ | (893) |  |  | $ | (895) |
Intangible assets | (388) |  |  | (439) |
Investments | (305) |  |  | (235) |
Other | (175) |  |  | (178) |
Total deferred tax liabilities | $ | (1,761) |  |  | $ | (1,747) |
Net deferred tax liabilities | $ | (736) |  |  | $ | (849) |
As recorded in the Consolidated Statements of Financial Position: |  |  |
Other noncurrent assets | $ | 112 |  |  | $ | 66 |
Deferred income tax liabilities | (848) |  |  | (915) |
Net deferred tax liabilities | $ | (736) |  |  | $ | (849) |
Schedule of Tax Receivables and Payables | Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position:
| December 31,
(Dollars in millions) | 2020 |  | 2019
Miscellaneous receivables | $ | 311 |  |  | $ | 211 |
Payables and other current liabilities | $ | 147 |  |  | $ | 36 |
Other long-term liabilities | 83 |  |  | 139 |
Total income taxes payable | $ | 230 |  |  | $ | 175 |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
(Dollars in millions) | 2020 |  | 2019 |  | 2018
Balance at January 1 | $ | 202 |  |  | $ | 182 |  |  | $ | 142 |
Adjustments based on tax positions related to current year | 14 |  |  | 25 |  |  | 9 |
Adjustments based on tax positions related to prior years | 63 |  |  | (3) |  |  | 35 |
Lapse of statute of limitations | (22) |  |  | (2) |  |  | (4) |
Balance at December 31 (1) | $ | 257 |  |  | $ | 202 |  |  | $ | 182 |
(1)All of the unrecognized tax benefits would, if recognized, impact the Company's effective tax rate. A reconciliation of the beginning and ending amounts of accrued interest related to unrecognized tax positions is as follows:
(Dollars in millions) | 2020 |  | 2019 |  | 2018
Balance at January 1 | $ | 13 |  |  | $ | 10 |  |  | $ | 6 |
Expense for interest, net of tax | 5 |  |  | 5 |  |  | 4 |
Income for interest, net of tax | (5) |  |  | (2) |  |  | — |
Balance at December 31 | $ | 13 |  |  | $ | 13 |  |  | $ | 10 |
Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2020, 2019, and 2018.

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