Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Taxes

INCOME BEFORE INCOME TAXES (Dollars in millions)	2023		2022			2021
U.S.	$	29	$	(3	)	$	(38	)
Non-U.S.		583		606			652
Total	$	612	$	603		$	614

Schedule of Provision for Income Taxes

PROVISION FOR INCOME TAXES (Dollars in millions)	2023			2022			2021
Current
U.S. federal	$	19		$	32		$	8
Non-U.S.		210			181			191
U.S. state and local		3			5			(2	)
Deferred
U.S. federal		(7	)		(20	)		(8	)
Non-U.S.		(101	)		(17	)		(10	)
U.S. state and local		(1	)		(3	)		(2	)
Total income tax expense	$	123		$	178		$	177

Schedule of Effective Income Tax Rate

EFFECTIVE INCOME TAX RATE (%)	2023				2022				2021
U.S. federal income tax rate		21.0		%		21.0		%		21.0		%
Non-Deductible Expenses		1.8				0.5				(0.1	)
Foreign tax rate variances		4.6				3.6				3.1
Tax credits		(3.9	)			(3.5	)			(2.2	)
Change in Valuation Allowances		11.6				(1.7	)			(0.1	)
Changes in tax reserves		2.7				(0.2	)			0.6
Provision to Return		(0.2	)			0.6				(0.2	)
Earnings of equity investments		(0.2	)			(0.1	)			(0.1	)
Withholding taxes		5.2				4.0				4.5
State taxes, net of federal benefit		0.3				0.4				(0.5	)
Tax Audits		0.0				1.0				0.6
Other Deferred Tax Asset Recognized1)		(26.7	)			0.0				0.0
U.S. FDII Deduction		(0.4	)			0.0				0.0
U.S. GILTI Tax		3.4				3.4				1.1
Impact of Translation Rates		1.1				0.2				—
Other, net		(0.2	)			0.3				1.2
Effective income tax rate		20.1		%		29.5		%		28.9		%

1) Deferred tax asset recognized in 2023 due to the transfer of certain assets and operations as part of the Company's restructuring activities.

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits (dollars in millions):

UNRECOGNIZED TAX BENEFITS	2023		2022			2021
Unrecognized tax benefits at beginning of year	$	67	$	65		$	63
Increases as a result of tax positions taken during a prior    period		8		0			3
Increases as a result of tax positions taken during the current    period		7		7			5
Decreases as a result of tax positions taken during a prior period		0		0			0
Decreases relating to settlements with taxing authorities		0		(4	)		(4	)
Decreases resulting from the lapse of the applicable statute    of limitations		0		0			(1	)
Translation Difference		1		(1	)		(1	)
Total unrecognized tax benefits at end of year	$	83	$	67		$	65

Schedule of Deferred Taxes

The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows (dollars in millions).

DEFERRED TAXES	December 31,
	2023			2022			2021
Assets
Provisions	$	126		$	99		$	136
Costs capitalized for tax		57			43			29
Other Deferred Tax Asset1)		160			0			0
Property, plant and equipment		11			12			0
Retirement Plans		40			42			46
Tax receivables, principally NOL’s		133			123			109
Deferred tax assets before allowances		527			319			320
Valuation allowances		(129	)		(46	)		(59	)
Total		398			273			261
Liabilities
Statutory tax allowances		0			0			(6	)
Distribution taxes		(3	)		(3	)		(6	)
Other		(1	)		(2	)		(3	)
Total		(4	)		(5	)		(15	)
Net deferred tax asset	$	394		$	268		$	246

1)

Schedule of Valuation Allowances Against Deferred Tax Assets

The following table summarizes the activity related to the Company’s valuation allowances (dollars in millions):

VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS	December 31,
	2023			2022			2021
Allowances at beginning of year	$	46		$	59		$	68
Benefits reserved current year		81			14			5
Benefits recognized current year1)		(2	)		(27	)		(9	)
Translation difference		4			0			(5	)
Allowances at end of year	$	129		$	46		$	59

1) Benefits reserved in the current year include the partial reserve against deferred tax assets recognized in 2023 due to the transfer of certain assets and operations as part of the Company's restructuring activities.