Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021	2020	2019
	(In $ millions)
U.S.	202	1,530	252
International	2,046	721	736
Total	2,248	2,251	988

Schedule of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2021	2020	2019
	(In $ millions)
Current
U.S.	—	13	(8)
International	323	126	149
Total	323	139	141
Deferred
U.S.	(16)	308	1
International	23	(200)	(18)
Total	7	108	(17)
Total	330	247	124

Schedule of Effective Tax Rate Reconciliation

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

	Year Ended December 31,
	2021		2020		2019
	(In $ millions, except percentages)
Income tax provision computed at U.S. federal statutory tax rate	472		473		208
Change in valuation allowance	(50)		(1)		(47)
Equity income and dividends	(29)		(54)		(38)
(Income) expense not resulting in tax impact, net	(53)		(46)		(9)
U.S. tax effect of foreign earnings and dividends	332		65		85
Foreign tax credits	(328)		(51)		(76)
Other foreign tax rate differentials	(66)		7		4
Legislative changes	(8)		1		(3)
State income taxes, net of federal benefit	6		4		6
Recognition of basis differences in investments in affiliates	—		(14)		—
Asset transfers between wholly owned foreign affiliates	—		(170)		—
Other, net	54		33		(6)
Income tax provision (benefit)	330		247		124
Effective income tax rate	15	%	11	%	13	%

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,
	2021	2020
	(In $ millions)
Deferred Tax Assets
Pension and postretirement obligations	96	132
Accrued expenses	31	32
Inventory	7	12
Net operating loss carryforwards	526	535
Tax credit carryforwards	207	247
Other	226	322
Subtotal	1,093	1,280
Valuation allowance(1)	(642)	(748)
Total	451	532
Deferred Tax Liabilities
Depreciation and amortization	312	256
Investments in affiliates	382	402
Other	64	124
Total	758	782
Net deferred tax assets (liabilities)	(307)	(250)

______________________________

(1)Includes deferred tax asset valuation allowances for the Company's deferred tax assets in the U.S., Luxembourg, Singapore, 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,
	2021	2020	2019
	(In $ millions)
As of the beginning of the year	165	134	162
Increases in tax positions for the current year	33	18	1
Increases in tax positions for prior years(1)	28	26	37
Decreases in tax positions for prior years	(11)	(13)	(41)
Increases (decreases) due to settlements	3	—	(25)
As of the end of the year	218	165	134
Total uncertain tax positions that if recognized would impact the effective tax rate	224	182	132
Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations(2)	2	6	5
Total amount of interest expense and penalties recognized in the consolidated balance sheets	52	54	45

______________________________

(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 tax positions due to changes in assessment, statute lapses, or audit closures that were reflected in the consolidated statements of operations.