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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components of loss before benefit from income taxes | The components of Loss before benefit from income taxes for 2020, 2019 and 2018 consist of:
(in millions) |  | 2020 |  | 2019 |  | 2018
Domestic |  | $ | (410) |  |  | $ | (2,396) |  |  | $ | (1,475) |
Foreign |  | (524) |  |  | 559 |  |  | (2,679) |
|  | $ | (934) |  |  | $ | (1,837) |  |  | $ | (4,154) |
Components of benefit from income taxes | The components of Benefit from income taxes for 2020, 2019 and 2018 consist of:
(in millions) |  | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |  |
Domestic |  | $ | (8) |  |  | $ | (12) |  |  | $ | — |
Foreign |  | (216) |  |  | (116) |  |  | (327) |
|  | (224) |  |  | (128) |  |  | (327) |
Deferred: |  |  |  |  |  |
Domestic |  | 9 |  |  | (5) |  |  | 17 |
Foreign |  | 590 |  |  | 187 |  |  | 320 |
|  | 599 |  |  | 182 |  |  | 337 |
|  | $ | 375 |  |  | $ | 54 |  |  | $ | 10 |
Reconciliation of benefit from income taxes from the expected amount calculated by applying the Canadian statutory rate to loss before benefit of income taxes | The Benefit from income taxes differs from the expected amount calculated by applying the Company’s Canadian statutory rate of 26.9% to Loss before benefit from income taxes for 2020, 2019 and 2018 as follows:
(in millions) |  | 2020 |  | 2019 |  | 2018
Loss before benefit from income taxes |  | $ | (934) |  |  | $ | (1,837) |  |  | $ | (4,154) |
Benefit from income taxes |  |  |  |  |  |
Expected benefit from income taxes at Canadian statutory rate |  | $ | 251 |  |  | $ | 494 |  |  | $ | 1,117 |
Non-deductible amount of share-based compensation |  | (9) |  |  | (7) |  |  | (10) |
Adjustments to tax attributes |  | 26 |  |  | (99) |  |  | (4) |
Change in valuation allowance related to foreign tax credits and NOLs |  | 62 |  |  | 21 |  |  | (3) |
Change in valuation allowance on Canadian deferred tax assets and tax rate changes |  | 687 |  |  | (142) |  |  | (875) |
Change in uncertain tax positions |  | (163) |  |  | (350) |  |  | (47) |
Foreign tax rate differences |  | (128) |  |  | 186 |  |  | (3) |
Non-deductible portion of Goodwill impairments |  | — |  |  | — |  |  | (488) |
Tax benefit on intra-entity transfers |  | (338) |  |  | — |  |  | 356 |
Other |  | (13) |  |  | (49) |  |  | (33) |
|  | $ | 375 |  |  | $ | 54 |  |  | $ | 10 |
Schedule of tax effect of major items recorded as deferred tax assets and liabilities and valuation allowance | Deferred tax assets and liabilities as of December 31, 2020 and 2019 consist of:
(in millions) |  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Tax loss carryforwards |  | $ | 2,924 |  |  | $ | 2,911 |
Provisions |  | 1,004 |  |  | 641 |
Research and development tax credits |  | 172 |  |  | 155 |
Scientific Research and Experimental Development pool |  | 55 |  |  | 52 |
Tax credit carryforwards |  | 20 |  |  | 25 |
Deferred revenue |  | 9 |  |  | 5 |
Unrealized FX on U.S. dollar debt and other financing cost |  | — |  |  | 94 |
Prepaid expenses |  | 27 |  |  | 41 |
Share-based compensation |  | 16 |  |  | 19 |
Other |  | 24 |  |  | 23 |
Total deferred tax assets |  | 4,251 |  |  | 3,966 |
Less valuation allowance |  | (2,252) |  |  | (2,831) |
Net deferred tax assets |  | 1,999 |  |  | 1,135 |
Deferred tax liabilities: |  |  |  |
Intangible assets |  | 228 |  |  | 53 |
Plant, equipment and technology |  | 89 |  |  | 56 |
Outside basis differences |  | 71 |  |  | 41 |
Unrealized FX on U.S. dollar debt and other financing cost |  | 2 |  |  | — |
Total deferred tax liabilities |  | 390 |  |  | 150 |
Net deferred tax asset |  | $ | 1,609 |  |  | $ | 985 |
The following table presents a reconciliation of the deferred tax asset valuation allowance for 2020, 2019 and 2018:
(in millions) |  | 2020 |  | 2019 |  | 2018
Balance, beginning of year |  | $ | 2,831 |  |  | $ | 2,913 |  |  | $ | 2,001 |
Charged to Benefit from income taxes |  | (773) |  |  | 13 |  |  | 870 |
Charged to other accounts |  | 194 |  |  | (95) |  |  | 42 |
Balance, end of year |  | $ | 2,252 |  |  | $ | 2,831 |  |  | $ | 2,913 |
Summary of open tax years by jurisdiction |
Jurisdiction: |  | Open Years
United States - Federal |  | 2015 - 2019
Canada |  | 2005 - 2019
Germany |  | 2014 - 2019
France |  | 2013 - 2019
China |  | 2016 - 2019
Ireland |  | 2016 - 2019
Netherlands |  | 2016 - 2019
Australia |  | 2011 - 2019
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | The following table presents a reconciliation of the unrecognized tax benefits for 2020, 2019 and 2018:
(in millions) |  | 2020 |  | 2019 |  | 2018
Balance, beginning of year |  | $ | 1,002 |  |  | $ | 654 |  |  | $ | 598 |
Additions based on tax positions related to the current year |  | 66 |  |  | 361 |  |  | 18 |
Additions for tax positions of prior years |  | 171 |  |  | 63 |  |  | 55 |
Reductions for tax positions of prior years |  | (209) |  |  | (58) |  |  | (11) |
Lapse of statute of limitations |  | (5) |  |  | (18) |  |  | (6) |
Balance, end of year |  | $ | 1,025 |  |  | $ | 1,002 |  |  | $ | 654 |

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