Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Earnings (Loss) from Continuing Operations Before Tax by Jurisdiction

Earnings (loss) from continuing operations before tax by jurisdiction are as follows:

	Year Ended December 31,
	2019	2018	2017
	(In $ millions)
US	252	480	262
International	736	1,030	813
Total	988	1,510	1,075

Schedule of Income Tax Provision (Benefit)

The income tax provision (benefit) consists of the following:

	Year Ended December 31,
	2019		2018		2017
	(In $ millions)
Current
US	(8	)	(184	)	201
International	149		143		158
Total	141		(41	)	359
Deferred
US	1		314		(110	)
International	(18	)	19		(36	)
Total	(17	)	333		(146	)
Total	124		292		213

Schedule of Effective Tax Rate Reconciliation

A reconciliation of the significant differences between the US federal statutory tax rate of 21% (35% for 2017) and the effective income tax rate on income from continuing operations is as follows:

	Year Ended December 31,
	2019		2018		2017
	(In $ millions, except percentages)
Income tax provision computed at US federal statutory tax rate	208		317		376
Change in valuation allowance	(47	)	94		218
Equity income and dividends	(38	)	(48	)	(87	)
(Income) expense not resulting in tax impact, net	(9	)	(51	)	(157	)
US tax effect of foreign earnings and dividends	85		25		521
Foreign tax credits	(76	)	(20	)	(759	)
Other foreign tax rate differentials	4		17		(38	)
Legislative changes	(3	)	(59	)	116
State income taxes, net of federal benefit	6		4		12
Other, net	(6	)	13		11
Income tax provision (benefit)	124		292		213
Effective income tax rate	13	%	19	%	20	%

Schedule of Consolidated Deferred Tax Assets and Liabilities

Significant components of the consolidated deferred tax assets and liabilities are as follows:

	As of December 31,
	2019		2018
	(In $ millions)
Deferred Tax Assets
Pension and postretirement obligations	140		138
Accrued expenses	57		61
Inventory	11		13
Net operating loss carryforwards	506		616
Tax credit carryforwards	273		330
Other	227		195
Subtotal	1,214		1,353
Valuation allowance(1)	(714	)	(899	)
Total	500		454
Deferred Tax Liabilities
Depreciation and amortization	411		375
Investments in affiliates	192		203
Other	58		47
Total	661		625
Net deferred tax assets (liabilities)	(161	)	(171	)

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⁽¹⁾ 

Includes deferred tax asset valuation allowances for the Company's deferred tax assets in the US, Luxembourg, Spain, China, the United Kingdom, Mexico, Canada and France. These valuation allowances relate primarily to net operating loss carryforward benefits and other net deferred tax assets, all of which may not be realizable.

Schedule of Activity Related to Uncertain Tax Positions

Activity related to uncertain tax positions is as follows:

	Year Ended December 31,
	2019		2018		2017
	(In $ millions)
As of the beginning of the year	162		119		114
Increases in tax positions for the current year	1		61		14
Increases in tax positions for prior years(1)	37		4		4
Decreases in tax positions for prior years	(41	)	(21	)	(7	)
Decreases due to settlements	(25	)	(1	)	(6	)
As of the end of the year	134		162		119
Total uncertain tax positions that if recognized would impact the effective tax rate	132		154		100
Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations(2)	5		1		6
Total amount of interest expense and penalties recognized in the consolidated balance sheets	45		38		38

______________________________

⁽¹⁾  Includes the impact on uncertain tax positions for the year ended December 31, 2019 due to the closure of federal income tax audits for the years 2009 through 2012 and uncertain tax positions related to the Nilit acquisition of $4 million for the year ended December 31, 2017. 

⁽²⁾ 

This amount reflects interest on uncertain tax positions and release of certain tax positions as a result of an audit closure that was reflected in the consolidated statements of operations.