Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

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,
	2025	2024	2023
	(In $ millions)
U.S.	(1,491)	(2,292)	(185)
International	271	1,273	1,346
Total	(1,220)	(1,019)	1,161

Schedule of Income Tax Provision (Benefit)

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


	Year Ended December 31,
	2025	2024	2023
	(In $ millions)
Current
U.S. - Federal	2	70	4
U.S. - State	1	9	4
International	158	239	162
Total	161	318	170
Deferred
U.S. - Federal	(99)	(84)	(170)
U.S. - State	(8)	(6)	(13)
International	(144)	279	(782)
Total	(251)	189	(965)
Total	(90)	507	(795)

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, 2025
	(In $ millions, except percentages)
Income tax provision computed at U.S. federal statutory tax rate	(256)	21.0	%
U.S.
State and local income tax, net of federal income tax effect	(9)	0.7	%

Changes in valuation allowances	39	(3.2)	%
Tax credits	(3)	0.2	%

Nontaxable or nondeductible items
Goodwill impairment losses	239	(19.6)	%
Other	10	(0.8)	%
Total Nontaxable or nondeductible items	249	(20.4)	%
Effect of cross-border tax laws
Subpart F	43	(3.5)	%
Global intangible low-taxed income	21	(1.7)	%
Other	11	(0.9)	%
Total Effect of cross-border tax laws	75	(6.1)	%
Other, net	(3)	0.3	%
Total U.S.	348	(28.5)	%
Foreign tax effects
China
Changes in valuation allowances	25	(2.0)	%
Other	8	(0.7)	%
Cyprus
Nontaxable or nondeductible items	(45)	3.7	%
Other	(10)	0.8	%
Germany
Asset transfers between wholly-owned foreign affiliates	(72)	5.9	%
Trade taxes	(47)	3.9	%
Other	(1)	0.1	%
Hong Kong
Dividends	(25)	2.0	%
Other	(2)	0.2	%
Mexico	(7)	0.6	%
Netherlands
Changes in valuation allowances	(15)	1.2	%
Other	18	(1.5)	%
Switzerland
Asset and investment impairment	(10)	0.8	%
Asset transfers between wholly-owned foreign affiliates	33	(2.7)	%
Cantonal taxes	18	(1.5)	%
Foreign tax rate differential	41	(3.4)	%
Foreign exchange permanent items	(42)	3.4	%
Other	19	(1.5)	%
Other foreign jurisdictions	(18)	1.5	%
Total Foreign tax effects	(132)	10.8	%
Changes in unrecognized tax benefits	(50)	4.1	%

Income tax provision (benefit)	(90)	7.4	%


	Year Ended December 31,
	2024		2023
	(In $ millions, except percentages)
Income tax provision computed at U.S. federal statutory tax rate	(212)		243
Change in valuation allowance	370		(150)
Equity income and dividends	(41)		(27)
(Income) expense not resulting in tax impact, net	327		(9)
U.S. tax effect of foreign earnings and dividends	184		384
Foreign tax credits	(137)		(73)
Other foreign tax rate differentials	(66)		(108)
Legislative changes	(6)		(44)

State income taxes, net of federal benefit	12		(8)

Asset transfers between wholly-owned foreign affiliates	87		(839)
Other, net	(11)		(164)
Income tax provision (benefit)	507		(795)

Effective income tax rate	(49.8)	%	(68.5)	%

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,
	2025	2024
	(In $ millions)
Deferred Tax Assets
Pension and postretirement obligations	35	58
Accrued expenses	118	69
Depreciation and amortization	149	—
Inventory	—	18
Net operating loss carryforwards	931	752
Tax credit carryforwards	268	560
Intangibles and other	928	419
Subtotal	2,429	1,876
Valuation allowance(1)	(1,327)	(1,106)
Total	1,102	770
Deferred Tax Liabilities
Depreciation and amortization	—	152
Inventory	3	—
Investments in affiliates	154	163
Other	117	127
Total	274	442
Net deferred tax assets (liabilities)(2)	828	328

______________________________

(1)Includes deferred tax asset valuation allowances for the Company's deferred tax assets in Switzerland, the U.S., Luxembourg, Spain, China, Germany, the Netherlands, Mexico, the United Kingdom, Malta, Singapore, Hong Kong, Canada, Belgium and Austria. These valuation allowances relate primarily to net operating loss carryforward benefits, foreign tax credit carryforwards and other net deferred tax assets, all of which may not be realizable.

(2)Includes net deferred tax liabilities of $19 million classified as held for sale (Note 4).

Schedule of Unrecognized Tax Benefits Roll Forward

Activity related to uncertain tax positions is as follows:


	Year Ended December 31,
	2025	2024	2023
	(In $ millions)
As of the beginning of the year	213	224	275
Increases (decreases) in tax positions for the current year	3	(3)	10
Increases in tax positions for prior years	11	6	9
Decreases in tax positions for prior years	(31)	(6)	(35)
Increases (decreases) due to settlements	(24)	(8)	(35)


As of the end of the year	172	213	224

Total uncertain tax positions that if recognized would impact the effective tax rate	231	236	244
Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations(1)	(14)	7	22
Total amount of interest expense and penalties recognized in the consolidated balance sheets	63	77	71

______________________________

(1)Primarily interest on uncertain tax positions and the release of tax positions due to changes in assessment, statute lapses or audit closures that were reflected in the consolidated statements of operations.