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Income Tax (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income (Loss) before Income Tax | Income (loss) before income tax is comprised of the following:
|  | Year ended December 31, 2020 |  |  | Year ended December 31, 2019 |  |  | Year ended December 31, 2018 |
Income (loss) recorded in the Netherlands |  |  | (19 | ) |  |  | (9 | ) |  |  | (13 | )
Income (loss) from foreign operations |  |  | 1,286 |  |  |  | 1,198 |  |  |  | 1,402 |
Income (loss) before income tax benefit (expense) |  |  | 1,267 |  |  |  | 1,189 |  |  |  | 1,389 |
Income Tax Benefit (Expense) | Income tax benefit (expense) is comprised of the following:
|  | Year ended December 31, 2020 |  |  | Year ended December 31, 2019 |  |  | Year ended December 31, 2018 |
The Netherlands taxes - current |  |  | — |  |  |  | — |  |  |  | — |
Foreign taxes - current |  |  | (171 | ) |  |  | (131 | ) |  |  | (114 | )
Total current taxes |  |  | (171 | ) |  |  | (131 | ) |  |  | (114 | )
The Netherlands taxes - deferred |  |  | — |  |  |  | — |  |  |  | — |
Foreign taxes - deferred |  |  | 12 |  |  |  | (25 | ) |  |  | 18 |
Total deferred taxes |  |  | 12 |  |  |  | (25 | ) |  |  | 18 |
Income tax expense |  |  | (159 | ) |  |  | (156 | ) |  |  | (96 | )
Effective tax rate |  |  | 13 | % |  |  | 13 | % |  |  | 7 | %
Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate | The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2020, 2019 and 2018, and the effective income tax rate are the following:
|  | Year ended December 31, 2020 |  |  | Year ended December 31, 2019 |  |  | Year ended December 31, 2018 |
Income tax benefit (expense) computed at statutory rate |  |  | (316 | ) |  |  | (297 | ) |  |  | (353 | )
Non-deductible and non-taxable permanent differences, net |  |  | (1 | ) |  |  | 4 |  |  |  | 45 |
Valuation allowance adjustments |  |  | 11 |  |  |  | 2 |  |  |  | 141 |
Effect on deferred taxes of changes in enacted tax rates |  |  | (5 | ) |  |  | 14 |  |  |  | (62 | )
Current year credits |  |  | 40 |  |  |  | 50 |  |  |  | 43 |
Other tax and credits |  |  | (40 | ) |  |  | (51 | ) |  |  | (20 | )
Benefits from tax holidays |  |  | 37 |  |  |  | 129 |  |  |  | 135 |
Net impact of changes to uncertain tax positions |  |  | (1 | ) |  |  | (5 | ) |  |  | (16 | )
Earnings of subsidiaries taxed at different rates |  |  | 116 |  |  |  | (2 | ) |  |  | (9 | )
Income tax benefit (expense) |  |  | (159 | ) |  |  | (156 | ) |  |  | (96 | )
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following:
|  | December 31, 2020 |  |  | December 31, 2019 |
Tax loss carryforwards and investment credits |  |  | 702 |  |  |  | 612 |
Less unrecognized tax benefit |  |  | (19 | ) |  |  | (21 | )
Tax loss carryforwards net of unrecognized tax benefit |  |  | 683 |  |  |  | 591 |
Inventory valuation |  |  | 34 |  |  |  | 28 |
Impairment and restructuring charges |  |  | 3 |  |  |  | 6 |
Fixed asset depreciation in arrears |  |  | 82 |  |  |  | 39 |
Increased depreciation incentives |  |  | 182 |  |  |  | 213 |
Capitalized development costs |  |  | 107 |  |  |  | 118 |
Receivables for government funding |  |  | 40 |  |  |  | 14 |
Tax credits granted on past capital investments |  |  | 215 |  |  |  | 1,151 |
Pension service costs |  |  | 104 |  |  |  | 81 |
Stock awards |  |  | 11 |  |  |  | 6 |
Operating lease liabilities |  |  | 36 |  |  |  | 40 |
Commercial accruals |  |  | 13 |  |  |  | 15 |
Other temporary differences |  |  | 26 |  |  |  | 22 |
Total deferred tax assets |  |  | 1,536 |  |  |  | 2,324 |
Valuation allowances |  |  | (638 | ) |  |  | (1,534 | )
Deferred tax assets, net |  |  | 898 |  |  |  | 790 |
Accelerated fixed asset depreciation |  |  | (21 | ) |  |  | (20 | )
Acquired intangible assets |  |  | (40 | ) |  |  | (16 | )
Advances of government funding |  |  | (94 | ) |  |  | (31 | )
Operating lease right-of-use assets |  |  | (36 | ) |  |  | (40 | )
Other temporary differences |  |  | (43 | ) |  |  | (7 | )
Deferred tax liabilities |  |  | (234 | ) |  |  | (114 | )
Net deferred income tax asset |  |  | 664 |  |  |  | 676 |
Gross Deferred Tax Assets On Tax Loss Carryforwards And Investment Credits Expiration Table Text Block | As at December 31, 2020, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2021, as follows:
Year |  |  |  |
2021 |  |  | 4 |
2022 |  |  | 7 |
2023 |  |  | 5 |
2024 |  |  | 4 |
2025 |  |  | 13 |
Thereafter |  |  | 669 |
Total |  |  | 702 |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of 2020, 2019 and 2018 beginning and ending amounts of unrecognized tax benefits is as follows:
|  | December 31, 2020 |  |  | December 31, 2019 |  |  | December 31, 2018 |
Balance at beginning of year |  |  | 48 |  |  |  | 38 |  |  |  | 333 |
Additions based on tax positions related to the current year |  |  | 1 |  |  |  | 7 |  |  |  | 43 |
Additions based on acquisitions related to the current year |  |  | — |  |  |  | 5 |  |  |  | — |
Additions for tax positions of prior years |  |  | 1 |  |  |  | 1 |  |  |  | 8 |
Reduction for tax positions of prior years |  |  | (2 | ) |  |  | (1 | ) |  |  | (310 | )
Settlements |  |  | (1 | ) |  |  | (2 | ) |  |  | (18 | )
Foreign currency translation |  |  | 1 |  |  |  | — |  |  |  | (18 | )
Balance at end of year |  |  | 48 |  |  |  | 48 |  |  |  | 38 |

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- 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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + 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=84230637&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=84230637&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=84230637&loc=d3e32840-109319 + Details
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