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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Income Tax | The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows:
| Years ended December 31,
Dollars in millions | 2021 |  | 2020 |  | 2019
United States | $ | 165 |  |  | $ | (208) |  |  | $ | 2 |
Foreign: |  |  |  |  |
United Kingdom | 56 |  |  | 76 |  |  | 105 |
Australia | (199) |  |  | 37 |  |  | 15 |
Canada | (2) |  |  | (2) |  |  | 3 |
Middle East | 39 |  |  | 69 |  |  | 87 |
Africa | 3 |  |  | 4 |  |  | 5 |
Other | 72 |  |  | (1) |  |  | 51 |
Subtotal | (31) |  |  | 183 |  |  | 266 |
Total | $ | 134 |  |  | $ | (25) |  |  | $ | 268 |
Summary of Taxes on Financial Statements | The total income taxes included in the statements of operations and in shareholders' equity were as follows:
| Years ended December 31,
Dollars in millions | 2021 |  | 2020 |  | 2019
(Provision) benefit for income taxes | $ | (108) |  |  | $ | (26) |  |  | $ | (59) |
Shareholders' equity, foreign currency translation adjustment | (1) |  |  | 1 |  |  | 1 |
Shareholders' equity, pension and post-retirement benefits | (44) |  |  | 26 |  |  | 11 |
Shareholders' equity, changes in fair value of derivatives | (7) |  |  | 3 |  |  | 2 |
Total income taxes | $ | (160) |  |  | $ | 4 |  |  | $ | (45) |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows:
Dollars in millions | Current |  | Deferred |  | Total
Year ended December 31, 2021 |  |  |  |  |
Federal | $ | (1) |  |  | $ | (24) |  |  | $ | (25) |
Foreign | (49) |  |  | (22) |  |  | (71) |
State and other | (15) |  |  | 3 |  |  | (12) |
Provision for income taxes | $ | (65) |  |  | $ | (43) |  |  | $ | (108) |
Year ended December 31, 2020 |  |  |  |  |
Federal | $ | — |  |  | $ | 29 |  |  | $ | 29 |
Foreign | (62) |  |  | 11 |  |  | (51) |
State and other | (4) |  |  | — |  |  | (4) |
(Provision) benefit for income taxes | $ | (66) |  |  | $ | 40 |  |  | $ | (26) |
Year ended December 31, 2019 |  |  |  |  |
Federal | $ | (4) |  |  | $ | 15 |  |  | $ | 11 |
Foreign | (67) |  |  | 1 |  |  | (66) |
State and other | (2) |  |  | (2) |  |  | (4) |
(Provision) benefit for income taxes | $ | (73) |  |  | $ | 14 |  |  | $ | (59) |
Components of Foreign Income Tax Provision | The components of our total foreign income tax provision were as follows:
| Years ended December 31,
Dollars in millions | 2021 |  | 2020 |  | 2019
United Kingdom | $ | (22) |  |  | $ | (14) |  |  | $ | (19) |
Australia | (23) |  |  | (6) |  |  | (6) |
Canada | — |  |  | (1) |  |  | (1) |
Middle East | (9) |  |  | (18) |  |  | (20) |
Africa | — |  |  | — |  |  | (1) |
Other | (17) |  |  | (12) |  |  | (19) |
Foreign provision for income taxes | $ | (71) |  |  | $ | (51) |  |  | $ | (66) |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% as a result of the following:
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
U.S. statutory federal rate, expected (benefit) provision | 21 | % |  | 21 | % |  | 21 | %
Increase (reduction) in tax rate from: |  |  |  |  |
Tax impact from foreign operations | — | % |  | 2 | % |  | 7 | %
Noncontrolling interests and equity earnings | 41 | % |  | (3) | % |  | — | %
State and local income taxes, net of federal benefit | 2 | % |  | — | % |  | 2 | %
Other permanent differences, net | 5 | % |  | 4 | % |  | 3 | %
Contingent liability accrual | 1 | % |  | 2 | % |  | 1 | %
U.S. taxes on foreign unremitted earnings | 1 | % |  | (1) | % |  | 3 | %
Change in valuation allowance | (4) | % |  | — | % |  | (10) | %
Research and development credits, net of provision | — | % |  | — | % |  | (5) | %
Non-deductible goodwill and restructuring charges | — | % |  | (130) | % |  | — | %
U.K. statutory rate change | 14 | % |  | — | % |  | — | %
Effective tax rate on income from operations | 81 | % |  | (105) | % |  | 22 | %
Schedule of Deferred Tax Assets and Liabilities | The primary components of our deferred tax assets and liabilities were as follows:
| Years ended December 31,
Dollars in millions | 2021 |  | 2020
Deferred tax assets: |  |  |
Employee compensation and benefits | $ | 88 |  |  | $ | 149 |
Foreign tax credit carryforwards | 200 |  |  | 243 |
Loss carryforwards | 111 |  |  | 105 |
Other credit carryforwards | 27 |  |  | 31 |
Insurance accruals | 10 |  |  | 8 |
Allowance for bad debt | 4 |  |  | 4 |
Lease obligation and accrued liabilities | 82 |  |  | 82 |
Contract liabilities | 35 |  |  | 7 |
Other | 56 |  |  | 67 |
Total gross deferred tax assets | 613 |  |  | 696 |
Valuation allowances | (204) |  |  | (220) |
Net deferred tax assets | 409 |  |  | 476 |
Deferred tax liabilities: |  |  |
Right-of-use assets | (37) |  |  | (37) |
Intangible amortization | (103) |  |  | (80) |
Indefinite-lived intangible amortization | (72) |  |  | (60) |
Other | (41) |  |  | (28) |
Total gross deferred tax liabilities | (253) |  |  | (205) |
Deferred income tax (liabilities) assets, net | $ | 156 |  |  | $ | 271 |
Summary of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2021 was as follows:
Dollars in millions | Net Gross Deferred Asset (Liability) |  | Valuation Allowance |  | Deferred Asset (Liability), net
United States | $ | 362 |  |  | $ | (166) |  |  | $ | 196 |
United Kingdom | (61) |  |  | — |  |  | (61) |
Australia | 11 |  |  | — |  |  | 11 |
Canada | 22 |  |  | (21) |  |  | 1 |
Other | 26 |  |  | (17) |  |  | 9 |
Total | $ | 360 |  |  | $ | (204) |  |  | $ | 156 |
Summary of Operating Loss Carryforwards | At December 31, 2021, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows:
Dollars in millions | December 31, 2021 |  | Expiration
Foreign tax credit carryforwards | $ | 200 |  |  | 2022-2029
Foreign net operating loss carryforwards | $ | 129 |  |  | 2022-2041
Foreign net operating loss carryforwards | $ | 41 |  |  | Indefinite
State net operating loss carryforwards | $ | 1,388 |  |  | Various
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows:
Dollars in millions | 2021 |  | 2020 |  | 2019
Balance at January 1, | $ | 96 |  |  | $ | 97 |  |  | $ | 90 |
Increases related to current year tax positions | — |  |  | 1 |  |  | 2 |
Increases related to prior year tax positions | — |  |  | 6 |  |  | 7 |
Decreases related to prior year tax positions | (4) |  |  | (7) |  |  | — |
Settlements | — |  |  | — |  |  | — |
Lapse of statute of limitations | (2) |  |  | (3) |  |  | (1) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | (1) |  |  | 2 |  |  | (1) |
Balance at December 31, | $ | 89 |  |  | $ | 96 |  |  | $ | 97 |

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