XML 58 R40.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
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):
|  | 2022 |  | 2021 |  | 2020
Domestic |  | $ | (698) |  |  | $ | (353) |  |  | $ | (923) |
Foreign |  | 855 |  |  | 1,113 |  |  | (78) |
Total |  | $ | 157 |  |  | $ | 760 |  |  | $ | (1,001) |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following for the years ended December 31, (in millions):
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | (245) |  |  | $ | 48 |  |  | $ | (50) |
State | 6 |  |  | 17 |  |  | 1 |
Foreign | 102 |  |  | 97 |  |  | 74 |
Total current | (137) |  |  | 162 |  |  | 25 |
Deferred: |  |  |  |  |
Federal | 163 |  |  | (26) |  |  | (136) |
State | (34) |  |  | (20) |  |  | (32) |
Foreign | (32) |  |  | 22 |  |  | (92) |
Total deferred | 97 |  |  | (24) |  |  | (260) |
Total income tax provision (benefit) | $ | (40) |  |  | $ | 138 |  |  | $ | (235) |
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:
| 2022 |  | 2021 |  | 2020
Statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Add (deduct) effect of: |  |  |  |  |
State income taxes, net of federal income tax effect | (14.8) |  |  | (0.5) |  |  | 2.5 |
U.S. foreign inclusions and foreign tax credit (1) | (43.5) |  |  | 3.6 |  |  | 3.7 |
Foreign rate differential | (47.2) |  |  | (11.6) |  |  | 2.7 |
Change in uncertain tax positions | 16.7 |  |  | 0.1 |  |  | 4.5 |
Change in valuation allowance reserve | (13.8) |  |  | (3.8) |  |  | 2.9 |
Impairments | 20.7 |  |  | — |  |  | (4.4) |
Sale of businesses | (21.2) |  |  | — |  |  | — |
Capital loss | — |  |  | (2.1) |  |  | 3.0 |
Reversal of outside basis difference | 1.6 |  |  | 0.4 |  |  | (5.2) |
Non-deductible compensation | 1.9 |  |  | 0.4 |  |  | (1.2) |
Other taxes | 4.5 |  |  | 1.3 |  |  | (0.9) |
U.S. income inclusions on asset transfers | 50.3 |  |  | 11.1 |  |  | (6.9) |
Foreign exchange | 2.0 |  |  | — |  |  | — |
Other | (3.7) |  |  | (1.7) |  |  | 1.8 |
Effective rate | (25.5) | % |  | 18.2 | % |  | 23.5 | %
(1)The Company accounts for tax on global intangible low-taxed income (“GILTI”) as a period cost and the effects are included herein.
Schedule of Components of Net Deferred Tax Assets | Deferred tax assets (liabilities) consist of the following at December 31, (in millions):
| 2022 |  | 2021
Deferred tax assets: |  |  |
Accruals | $ | 153 |  |  | $ | 156 |
Inventory | 84 |  |  | 56 |
Pension and postretirement benefits | 49 |  |  | 32 |
Net operating losses | 295 |  |  | 330 |
Foreign tax credits | 27 |  |  | 150 |
Capital loss carryforward | 41 |  |  | 257 |
Operating lease liabilities | 169 |  |  | 169 |
Other | 180 |  |  | 158 |
Total gross deferred tax assets | 998 |  |  | 1,308 |
Less valuation allowance | (148) |  |  | (186) |
Net deferred tax assets after valuation allowance | 850 |  |  | 1,122 |
Deferred tax liabilities: |  |  |
Accelerated depreciation | (119) |  |  | (107) |
Amortizable intangibles | (114) |  |  | (260) |
Outside basis differences | (96) |  |  | (96) |
Operating lease assets | (154) |  |  | (152) |
U.S. foreign inclusion recapture | (6) |  |  | (62) |
Other | (71) |  |  | (59) |
Total gross deferred tax liabilities | (560) |  |  | (736) |
Net deferred tax assets | $ | 290 |  |  | $ | 386 |
The net deferred tax amounts have been classified in the balance sheet at December 31, (in millions):
|  | 2022 |  | 2021
Noncurrent deferred tax assets |  | $ | 810 |  |  | $ | 814 |
Noncurrent deferred tax liabilities |  | (520) |  |  | (428) |
Total |  | $ | 290 |  |  | $ | 386 |
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):
| 2022 |  | 2021 |  | 2020
Unrecognized tax benefits, January 1, | $ | 457 |  |  | $ | 452 |  |  | $ | 474 |
Increases (decreases): |  |  |  |  |
Increases in tax positions for prior years | 1 |  |  | 1 |  |  | 4 |
Decreases in tax positions for prior years | (3) |  |  | (4) |  |  | — |
Increase in tax positions for the current period | 44 |  |  | 23 |  |  | 40 |
Settlements with taxing authorities | (13) |  |  | (2) |  |  | — |
Lapse of statute of limitations | (10) |  |  | (12) |  |  | (66) |
Cumulative translation adjustments | — |  |  | (1) |  |  | — |
Unrecognized tax benefits, December 31, | $ | 476 |  |  | $ | 457 |  |  | $ | 452 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://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 https://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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration