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Income Taxes (Tables)

12 Months Ended

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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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.

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