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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes for the years ended December 31, (in millions):
|  | 2021 |  | 2020 |  | 2019
Domestic |  | $ | (420) |  |  | $ | (928) |  |  | $ | (1,249) |
Foreign |  | 1,113 |  |  | (78) |  |  | 397 |
Total |  | $ | 693 |  |  | $ | (1,006) |  |  | $ | (852) |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following for the years ended December 31, (in millions):
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 48 |  |  | $ | (50) |  |  | $ | 8 |
State | 17 |  |  | 1 |  |  | 11 |
Foreign | 97 |  |  | 74 |  |  | 42 |
Total current | 162 |  |  | 25 |  |  | 61 |
Deferred: |  |  |  |  |
Federal | (39) |  |  | (136) |  |  | (355) |
State | (24) |  |  | (33) |  |  | (63) |
Foreign | 22 |  |  | (92) |  |  | (650) |
Total deferred | (41) |  |  | (261) |  |  | (1,068) |
Total income tax provision (benefit) | 121 |  |  | (236) |  |  | (1,007) |
Total income tax provision - discontinued operations | — |  |  | — |  |  | 31 |
Total income tax provision (benefit) - continuing operations | $ | 121 |  |  | $ | (236) |  |  | $ | (1,038) |
Reconciliation of U.S. Statutory Rate to Effective Income Tax Rate on Continuing Basis | A reconciliation of the U.S. statutory rate to the effective income tax rate on a continuing basis is as follows for the years ended December 31:
| 2021 |  | 2020 |  | 2019
Statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Add (deduct) effect of: |  |  |  |  |
State income taxes, net of federal income tax effect | (0.9) |  |  | 2.4 |  |  | 3.8 |
U.S. foreign inclusions and foreign tax credit (1) | 3.9 |  |  | 3.6 |  |  | (1.6) |
Foreign rate differential | (12.7) |  |  | 2.7 |  |  | 4.9 |
Change in uncertain tax positions | 0.1 |  |  | 4.5 |  |  | 5.9 |
Change in valuation allowance reserve | (4.2) |  |  | 3.0 |  |  | (5.9) |
Impairments | — |  |  | (4.4) |  |  | (3.3) |
Capital loss | (2.3) |  |  | 3.0 |  |  | 25.4 |
Reversal of outside basis difference | 0.4 |  |  | (5.2) |  |  | 0.4 |
Non-deductible compensation | 0.4 |  |  | (1.2) |  |  | (1.6) |
Other taxes | 1.4 |  |  | (0.9) |  |  | 1.6 |
U.S. income inclusions on asset transfers | 12.2 |  |  | (6.9) |  |  | (2.2) |
Outbound transfer of U.S. assets (2) | — |  |  | — |  |  | 70.5 |
Other | (1.9) |  |  | 1.9 |  |  | 3.0 |
Effective rate | 17.4 | % |  | 23.5 | % |  | 121.9 | %
(1)The Company accounts for tax on global intangible low-taxed income (“GILTI”) as a period cost and the effects are included herein. (2)In connection with the Company's execution to rationalize its legal entities along with centralizing the ownership of certain intellectual property rights for its comprehensive management and protection, the Company transferred these intellectual property rights to a wholly-owned subsidiary, which resulted in the creation of deferred tax assets and a corresponding income tax benefit of $522 million for the year ended December 31, 2019.
Schedule of Components of Net Deferred Tax Assets | Deferred tax assets (liabilities) consist of the following at December 31, (in millions):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Accruals | $ | 156 |  |  | $ | 138 |
Inventory | 79 |  |  | 39 |
Pension and postretirement benefits | 32 |  |  | 60 |
Net operating losses | 330 |  |  | 350 |
Foreign tax credits | 150 |  |  | 185 |
Capital loss carryforward | 257 |  |  | 241 |
Operating lease liabilities | 169 |  |  | 162 |
Other | 158 |  |  | 158 |
Total gross deferred tax assets | 1,331 |  |  | 1,333 |
Less valuation allowance | (186) |  |  | (213) |
Net deferred tax assets after valuation allowance | 1,145 |  |  | 1,120 |
Deferred tax liabilities: |  |  |
Accelerated depreciation | (107) |  |  | (92) |
Amortizable intangibles | (260) |  |  | (282) |
Outside basis differences | (96) |  |  | (93) |
Operating lease assets | (152) |  |  | (145) |
U.S. foreign inclusion recapture | (62) |  |  | (30) |
Other | (59) |  |  | (54) |
Total gross deferred tax liabilities | (736) |  |  | (696) |
Net deferred tax assets | $ | 409 |  |  | $ | 424 |
The net deferred tax amounts have been classified in the balance sheet at December 31, (in millions):
|  | 2021 |  | 2020
Noncurrent deferred tax assets |  | $ | 814 |  |  | $ | 838 |
Noncurrent deferred tax liabilities |  | (405) |  |  | (414) |
Total |  | $ | 409 |  |  | $ | 424 |
Summary of Changes in Gross Unrecognized Tax Benefits | The following table summarizes the changes in gross unrecognized tax benefits periods indicated are as follows (in millions):
| 2021 |  | 2020 |  | 2019
Unrecognized tax benefits, January 1, | $ | 452 |  |  | $ | 474 |  |  | $ | 463 |
Increases (decreases): |  |  |  |  |
Increases in tax positions for prior years | 1 |  |  | 4 |  |  | 35 |
Decreases in tax positions for prior years | (4) |  |  | — |  |  | (31) |
Increase in tax positions for the current period | 23 |  |  | 40 |  |  | 84 |
Purchase accounting adjustments (See Footnote 1) | — |  |  | — |  |  | (9) |
Settlements with taxing authorities | (2) |  |  | — |  |  | (2) |
Lapse of statute of limitations | (12) |  |  | (66) |  |  | (66) |
Cumulative translation adjustments | (1) |  |  | — |  |  | — |
Unrecognized tax benefits, December 31, | $ | 457 |  |  | $ | 452 |  |  | $ | 474 |

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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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