Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020	2019	2018
	(In $ millions)
US	1,530	252	480
International	721	736	1,030
Total	2,251	988	1,510

Schedule of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2020	2019	2018
	(In $ millions)
Current
US	13	(8)	(184)
International	126	149	143
Total	139	141	(41)
Deferred
US	308	1	314
International	(200)	(18)	19
Total	108	(17)	333
Total	247	124	292

Schedule of Effective Tax Rate Reconciliation

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

	Year Ended December 31,
	2020		2019		2018
	(In $ millions, except percentages)
Income tax provision computed at US federal statutory tax rate	473		208		317
Change in valuation allowance	(1)		(47)		94
Equity income and dividends	(54)		(38)		(48)
(Income) expense not resulting in tax impact, net	(46)		(9)		(51)
US tax effect of foreign earnings and dividends	65		85		25
Foreign tax credits	(51)		(76)		(20)
Other foreign tax rate differentials	7		4		17
Legislative changes	1		(3)		(59)
State income taxes, net of federal benefit	4		6		4
Recognition of basis differences in investments in affiliates	(14)		—		—
Asset transfers between wholly owned foreign affiliates	(170)		—		—
Other, net	33		(6)		13
Income tax provision (benefit)	247		124		292
Effective income tax rate	11	%	13	%	19	%

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,
	2020	2019
	(In $ millions)
Deferred Tax Assets
Pension and postretirement obligations	132	140
Accrued expenses	32	57
Inventory	12	11
Net operating loss carryforwards	535	506
Tax credit carryforwards	247	273
Other	322	227
Subtotal	1,280	1,214
Valuation allowance(1)	(748)	(714)
Total	532	500
Deferred Tax Liabilities
Depreciation and amortization	256	411
Investments in affiliates	402	192
Other	124	58
Total	782	661
Net deferred tax assets (liabilities)	(250)	(161)

______________________________

(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,
	2020	2019	2018
	(In $ millions)
As of the beginning of the year	134	162	119
Increases in tax positions for the current year	18	1	61
Increases in tax positions for prior years(1)	26	37	4
Decreases in tax positions for prior years	(13)	(41)	(21)
Decreases due to settlements	—	(25)	(1)
As of the end of the year	165	134	162
Total uncertain tax positions that if recognized would impact the effective tax rate	182	132	154
Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations(2)	6	5	1
Total amount of interest expense and penalties recognized in the consolidated balance sheets	54	45	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.

(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.