Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income before Income Taxes and Noncontrolling Interests

The domestic and foreign components of the Company's earnings before income taxes and noncontrolling interests are as follows:

	Year Ended December 31
	2019			2018			2017
U.S. income earnings (loss) before income taxes	$	(599	)	$	(138	)	$	(28	)
Foreign earnings (loss) before income taxes	398			312			364
Earnings (loss) before income taxes and noncontrolling interests	$	(201	)	$	174		$	336

Comparative Analysis of Components of Income Tax Expense

The following table is a comparative analysis of the components of income tax expense (benefit):

	Year Ended December 31
	2019			2018			2017
Current —
U.S. federal	$	8		$	8		$	(23	)
State and local	1			1			1
Foreign	161			119			101
	170			128			79
Deferred —
U.S. federal	(101		)	(35		)	16
State and local	(13		)	(5		)	(3		)
Foreign	(37		)	(25		)	(21		)
	(151		)	(65		)	(8		)
Income tax expense (benefit)	$	19		$	63		$	71

Reconciliation of Income Taxes Computed at Statutory U.S. Federal Income Tax Rate to Income Tax Expense

The following table is a reconciliation of income taxes computed at the statutory U.S. federal income tax rate (21% for 2019 and 2018 and 35% for 2017) to the income tax expense (benefit) reflected in the consolidated statements of income (loss):

	Year Ended December 31
	2019			2018			2017
Income tax expense (benefit) computed at the statutory U.S. federal income tax rate	$	(42	)	$	37		$	117
Increases (reductions) in income tax expense resulting from:
Foreign income taxed at different rates	8			19			(48		)
Transition tax under Tax Cuts and Jobs Act ("TCJA")	—			11			43
Remeasurement of worldwide deferred taxes	—			—			53
State and local taxes on income, net of U.S. federal income tax benefit	(14		)	(6		)	(2		)
Changes in valuation allowance for tax loss carryforwards and credits	36			—			(1		)
Investment and R&D tax credits	(19		)	(12		)	(6		)
Foreign earnings subject to U.S. federal income tax	12			13			(74		)
Non-deductible expenses	16			3			3
Goodwill impairment	22			—			—
Tax contingencies	(7		)	1			(1		)
Gains on transfers of subsidiaries	21			—			—
Nonconsolidated affiliates	(8		)	(4		)	—
Other	(6		)	1			(13		)
Income tax expense (benefit)	$	19		$	63		$	71

Components of Our Net Deferred Tax Assets

The components of the Company's net deferred tax assets were as follows:

	December 31
	2019			2018
Deferred tax assets —
Tax loss carryforwards:
State	$	18		$	18
Foreign (a)	559			404
Tax credits	179			159
Postretirement benefits other than pensions	20			21
Pensions	158			158
Payroll accruals	23			24
Book over tax depreciation	91			68
Research expense capitalized for tax	72			30
Other accruals	167			133
Valuation allowance (a)	(762		)	(554		)
Total deferred tax assets	525			461
Deferred tax liabilities —
Amortization of intangibles	24			82
Total deferred tax liabilities	24			82
Net deferred tax assets	$	501		$	379

Reconciliation of Deferred Taxes to Deferred Taxes Shown In Balance Sheet

	At December 31
	2019			2018
Consolidated Balance Sheets:
Non-current portion — deferred tax asset	$	607		$	467
Non-current portion — deferred tax liability	(106		)	(88		)
Net deferred tax assets	$	501		$	379

Reconciliation of Our Uncertain Tax Positions

A reconciliation of the Company's uncertain tax positions is as follows:

	2019			2018			2017
Uncertain tax positions —
Balance at beginning of period	$	224		$	112		$	111
Gross increases in tax positions due to acquisition	—			110			—
Gross increases in tax positions in current period	12			8			6
Gross increases in tax positions in prior period	4			7			2
Gross decreases in tax positions in prior period	(5		)	(1		)	(2		)
Gross decreases — settlements	(12		)	(2		)	—
Gross decreases — statute of limitations expired	(8		)	(10		)	(5		)
Balance at end of period	$	215		$	224		$	112

Additional information surrounding the balance of uncertain tax positions recognized were the following:

	Years ended December 31
	2019		2018		2017
Tax benefits, that if recognized, would affect the effective tax rate	$	141	$	134	$	108
Income tax expense for accrued interest	$	1	$	2	$	—

The Company's liability for penalties and interest were as follows:

	At December 31
	2019		2018
Accrued liability for penalties on uncertain tax positions	$	4	$	12
Accrued liability for interest on uncertain tax positions	$	12	$	11

Tax Years Open to Examination in Primary Jurisdictions

As of December 31, 2019, the Company's tax years open to examination in primary jurisdictions are as follows:

	Open To  Tax Year
United States	2003
Belgium	2017
Brazil	2015
China	2012
France	2009
Germany	2012
India	2000
Italy	2015
Mexico	2013
Poland	2014
Spain	2000
United Kingdom	2016