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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Tax

The United States and foreign components of income (loss) before income taxes and noncontrolling interests were as follows:
 
Years ended December 31,
Dollars in millions
2019
 
2018
 
2017
United States
$
2

 
$
44

 
$
84

Foreign:
 
 
 
 
 
United Kingdom
105

 
203

 
40

Australia
15

 
7

 
(30
)
Canada
3

 
(2
)
 
15

Middle East
87

 
61

 
42

Africa
5

 
13

 
20

Other
51

 
70

 
76

Subtotal
266

 
352

 
163

Total
$
268

 
$
396

 
$
247
Summary of Taxes on Financial Statements
The total income taxes included in the statements of operations and in shareholders' equity were as follows:
 
Years ended December 31,
Dollars in millions
2019
 
2018
 
2017
(Provision) Benefit for income taxes
$
(59
)
 
$
(86
)
 
$
193

Shareholders' equity, foreign currency translation adjustment
1

 
(2
)
 
6

Shareholders' equity, pension and post-retirement benefits
11

 
(14
)
 
(27
)
Shareholders' equity, changes in fair value of derivatives
2

 
3

 
—

Total income taxes
$
(45
)
 
$
(99
)
 
$
172
Components of Provision for Income Taxes
The components of the provision for income taxes were as follows:
Dollars in millions
Current
 
Deferred
 
Total
Year-ended December 31, 2019
 
 
 
 
 
Federal
$
(4
)
 
$
15

 
$
11

Foreign
(67
)
 
1

 
(66
)
State and other
(2
)
 
(2
)
 
(4
)
(Provision) benefit for income taxes
$
(73
)
 
$
14

 
$
(59
)
 
 
 
 
 
 
Year-ended December 31, 2018
 
 
 
 
 
Federal
$
(1
)
 
$
(6
)
 
$
(7
)
Foreign
(56
)
 
(20
)
 
(76
)
State and other
(2
)
 
(1
)
 
(3
)
Provision for income taxes
$
(59
)
 
$
(27
)
 
$
(86
)
 
 
 
 
 
 
Year-ended December 31, 2017
 
 
 
 
 
Federal
$
(6
)
 
$
230

 
$
224

Foreign
(122
)
 
92

 
(30
)
State and other
(2
)
 
1

 
(1
)
(Provision) benefit for income taxes
$
(130
)
 
$
323

 
$
193
Components of Foreign Income Tax Provision
The components of our total foreign income tax provision were as follows:

 
Years ended December 31,
Dollars in millions
2019
 
2018
 
2017
United Kingdom
$
(19
)
 
$
(32
)
 
$
(7
)
Australia
(6
)
 
(8
)
 
6

Canada
(1
)
 
(6
)
 
—

Middle East
(20
)
 
(16
)
 
(10
)
Africa
(1
)
 
(1
)
 
1

Other
(19
)
 
(13
)
 
(20
)
Foreign provision for income taxes
$
(66
)
 
$
(76
)
 
$
(30
)
Schedule of Effective Income Tax Rate Reconciliation
Our effective tax rates on income from operations differed from the statutory U.S. federal income tax rate of 21% for 2019 and 2018 and the statutory rate of 35% for 2017 as a result of the following:
 
Years ended December 31,
 
2019
 
2018
 
2017
U.S. statutory federal rate, expected (benefit) provision
21
 %
 
21
 %
 
35
 %
Increase (reduction) in tax rate from:
 
 
 
 
 
Tax impact from foreign operations
7

 
—

 
(5
)
Noncontrolling interests and equity earnings
—

 
(1
)
 
(2
)
State and local income taxes, net of federal benefit
2

 
1

 
1

Other permanent differences, net
3

 
—

 
(8
)
Contingent liability accrual
1

 
3

 
(2
)
U.S. taxes on foreign unremitted earnings
3

 
—

 
—

Change in valuation allowance
(10
)
 
(2
)
 
(90
)
Research and development credits, net of provision
(5
)
 
—

 
—

U.S. tax reform
—

 
—

 
(7
)
Effective tax rate on income from operations
22
 %
 
22
 %
 
(78
)%
Schedule of Deferred Tax Assets and Liabilities
The primary components of our deferred tax assets and liabilities were as follows:
 
Years ended December 31,
Dollars in millions
2019
 
2018
Deferred tax assets:
 
 
 
Employee compensation and benefits
$
103

 
$
95

Foreign tax credit carryforwards
257

 
267

Loss carryforwards
96

 
103

Insurance accruals
7

 
9

Allowance for bad debt
2

 
2

Accrued liabilities
63

 
23

Construction contract accounting
—

 
—

Other
4

 
3

Total gross deferred tax assets
532

 
502

Valuation allowances
(200
)
 
(207
)
Net deferred tax assets
332

 
295

Deferred tax liabilities:
 
 
 
Construction contract accounting
(6
)
 
(1
)
Intangible amortization
(56
)
 
(57
)
Indefinite-lived intangible amortization
(49
)
 
(41
)
Fixed asset depreciation
2

 
1

Accrued foreign tax credit carryforwards
(3
)
 
(2
)
Total gross deferred tax liabilities
(112
)
 
(100
)
Deferred income tax (liabilities) assets, net
$
220

 
$
195
Summary of Valuation Allowance
The net deferred tax balance by major jurisdiction after valuation allowance as of December 31, 2019 was as follows:
Dollars in millions
Net Gross Deferred Asset (Liability)
 
Valuation Allowance
 
Deferred Asset (Liability), net
United States
$
370

 
$
(156
)
 
$
214

United Kingdom
(6
)
 
—

 
(6
)
Australia
12

 
—

 
12

Canada
23

 
(22
)
 
1

Other
21

 
(22
)
 
(1
)
Total
$
420

 
$
(200
)
 
$
220
Summary of Operating Loss Carryforwards
At December 31, 2019, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows:
 
 
Dollars in millions
December 31, 2019
 
Expiration
Foreign tax credit carryforwards
$
257

 
2020-2029
Foreign net operating loss carryforwards
$
150

 
2020-2039
Foreign net operating loss carryforwards
$
34

 
Indefinite
State net operating loss carryforwards
$
1,024

 
Various
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows:
Dollars in millions
2019
 
2018
 
2017
Balance at January 1,
$
90

 
$
184

 
$
261

Increases related to current year tax positions
2

 
1

 
2

Increases related to prior year tax positions
7

 
18

 
1

Decreases related to prior year tax positions
—

 
(45
)
 
(1
)
Settlements
—

 
(62
)
 
(80
)
Lapse of statute of limitations
(1
)
 
(2
)
 
(1
)
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions
(1
)
 
(4
)
 
2

Balance at December 31,
$
97

 
$
90

 
$
184