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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income (Loss) before Income Taxes | The components of Income (Loss) before Income Taxes follow:
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
U.S. |  | $ | 41 |  |  | $ | (102 | ) |  | $ | (993 | )
Foreign |  |  | 358 |  |  |  | 615 |  |  |  | (147 | )
|  | $ | 399 |  |  | $ | 513 |  |  | $ | (1,140 | )
Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax Expense (Benefit) | A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax Expense (Benefit) follows:
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
U.S. federal income tax expense (benefit) at the statutory rate of 21% |  | $ | 84 |  |  | $ | 108 |  |  | $ | (239 | )
Net foreign losses (income) with no tax due to valuation allowances |  |  | 45 |  |  |  | 3 |  |  |  | 37 |
Adjustment for foreign income taxed at different rates |  |  | 33 |  |  |  | 24 |  |  |  | 7 |
Net establishment (release) of foreign valuation allowances and write off of deferred taxes |  |  | 24 |  |  |  | (1 | ) |  |  | — |
U.S. charges (benefits) related to foreign tax credits, R&D and foreign derived intangible deduction |  |  | (7 | ) |  |  | (4 | ) |  |  | (9 | )
State income taxes, net of U.S. federal benefit |  |  | 6 |  |  |  | 1 |  |  |  | (17 | )
Deferred tax impact of enacted rate and law changes |  |  | (6 | ) |  |  | (61 | ) |  |  | (18 | )
Net establishment (release) of uncertain tax positions |  |  | (4 | ) |  |  | (6 | ) |  |  | 6 |
Net establishment (release) of U.S. valuation allowances |  |  | — |  |  |  | (340 | ) |  |  | 310 |
Goodwill impairment |  |  | — |  |  |  | — |  |  |  | 34 |
Other |  |  | 15 |  |  |  | 9 |  |  |  | (1 | )
United States and Foreign Tax Expense (Benefit) |  | $ | 190 |  |  | $ | (267 | ) |  | $ | 110 |
Components of United States and Foreign Tax Expense (Benefit) | The components of United States and Foreign Tax Expense (Benefit) by taxing jurisdiction, follow:
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | 1 |  |  | $ | (5 | )
Foreign |  |  | 150 |  |  |  | 166 |  |  |  | 95 |
State |  |  | 12 |  |  |  | 37 |  |  |  | (3 | )
|  |  | 162 |  |  |  | 204 |  |  |  | 87 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (28 | ) |  |  | (362 | ) |  |  | 63 |
Foreign |  |  | 46 |  |  |  | (23 | ) |  |  | (31 | )
State |  |  | 10 |  |  |  | (86 | ) |  |  | (9 | )
|  |  | 28 |  |  |  | (471 | ) |  |  | 23 |
United States and Foreign Tax Expense (Benefit) |  | $ | 190 |  |  | $ | (267 | ) |  | $ | 110 |
Deferred Tax Assets and Liabilities | Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow:
(In millions) |  | 2022 |  |  | 2021 |
Tax loss carryforwards and credits |  | $ | 1,160 |  |  | $ | 1,274 |
Capitalized research and development expenditures |  |  | 481 |  |  |  | 453 |
Prepaid royalty income |  |  | 457 |  |  |  | 534 |
Partnership basis differences |  |  | 341 |  |  |  | 364 |
Accrued expenses deductible as paid |  |  | 320 |  |  |  | 331 |
Lease liabilities |  |  | 70 |  |  |  | 101 |
Postretirement benefits and pensions |  |  | 63 |  |  |  | 126 |
Rationalizations and other provisions |  |  | 52 |  |  |  | 26 |
Vacation and sick pay |  |  | 26 |  |  |  | 25 |
Other |  |  | 100 |  |  |  | 98 |
|  |  | 3,070 |  |  |  | 3,332 |
Valuation allowance |  |  | (1,072 | ) |  |  | (1,044 | )
Total deferred tax assets |  |  | 1,998 |  |  |  | 2,288 |
Property basis differences |  |  | (407 | ) |  |  | (503 | )
Intangible property basis differences related to Cooper Tire acquisition |  |  | (214 | ) |  |  | (227 | )
Right-of-use assets |  |  | (68 | ) |  |  | (96 | )
Tax on undistributed earnings of subsidiaries |  |  | — |  |  |  | (1 | )
Total net deferred tax assets |  | $ | 1,309 |  |  | $ | 1,461 |
Reconciliation of Unrecognized Tax Benefits | A summary of our unrecognized tax benefits and changes during the year follows:
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Balance at January 1 |  | $ | 90 |  |  | $ | 85 |  |  | $ | 82 |
Increases related to prior year tax positions |  |  | 10 |  |  |  | 28 |  |  |  | 26 |
Decreases related to prior year tax positions |  |  | — |  |  |  | (12 | ) |  |  | (1 | )
Settlements |  |  | (12 | ) |  |  | (5 | ) |  |  | (15 | )
Foreign currency impact |  |  | (1 | ) |  |  | (7 | ) |  |  | (7 | )
Increases related to current year tax positions |  |  | 2 |  |  |  | 3 |  |  |  | — |
Lapse of statute of limitations |  |  | (2 | ) |  |  | (2 | ) |  |  | — |
Balance at December 31 |  | $ | 87 |  |  | $ | 90 |  |  | $ | 85 |

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