Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes and equity income for U.S. and non-U.S. operations are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
U.S. loss	$	(2)	$	(65)	$	(1)
Non-U.S. income	912		2,019		1,127
Income before income taxes and equity loss	$	910	$	1,954	$	1,126

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes is comprised of:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Current income tax expense (benefit):
U.S. federal	$	1	$	(53)	$	8
Non-U.S.	156		154		156
U.S. state and local	4		—		1
Total current	161		101		165
Deferred income tax expense (benefit), net:
U.S. federal	(17)		(14)		(23)
Non-U.S.	(43)		(37)		(8)
U.S. state and local	—		(1)		(2)
Total deferred	(60)		(52)		(33)
Total income tax provision	$	101	$	49	$	132

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes compared with the amounts at the notional U.S. federal statutory rate was:

	Year Ended December 31,
	2021			2020			2019
	(in millions)
Notional U.S. federal income taxes at statutory rate	$	191		$	410		$	236
Income taxed at other rates	(81)			(339)			(92)
Change in valuation allowance	(17)			10			(18)
Other change in tax reserves	19			30			20
Intragroup reorganizations	(7)			(49)			—
Withholding taxes	37			26			19
Tax credits	(23)			(16)			(18)
Change in tax law	(7)			(2)			1
Other adjustments	(11)			(21)			(16)
Total income tax expense	$	101		$	49		$	132
Effective tax rate	11		%	3		%	12		%

Schedule of Deferred Tax Assets and Liabilities

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

	December 31,
	2021		2020
	(in millions)
Deferred tax assets:
Pension	$	76	$	106
Employee benefits	30		29
Net operating loss carryforwards	699		746
Warranty and other liabilities	77		69
Operating lease right-of-use assets	78		77
Other	184		171
Total gross deferred tax assets	1,144		1,198
Less: valuation allowances	(766)		(832)
Total deferred tax assets (1)	$	378	$	366
Deferred tax liabilities:
Fixed assets	$	55	$	57
Tax on unremitted profits of certain foreign subsidiaries	65		64
Intangibles	174		201
Operating lease liabilities	78		77
Total gross deferred tax liabilities	372		399
Net deferred tax assets (liabilities)	$	6	$	(33)

(1)Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities.

Schedule of Deferred Tax Assets and Liabilities, Balance Sheet Location

Net deferred tax assets and liabilities are included in the consolidated balance sheets as follows:

	December 31,
	2021		2020
	(in millions)
Long-term assets	$	159	$	174
Long-term liabilities	(153)		(207)
Total deferred tax asset (liability)	$	6	$	(33)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the gross change in the unrecognized tax benefits balance, excluding interest and penalties is as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance at beginning of year	$	231	$	217	$	209
Additions related to current year	12		35		20
Additions related to prior years	20		31		51
Reductions related to prior years	(36)		(20)		(46)
Reductions due to expirations of statute of limitations	(3)		(28)		(11)
Settlements	—		(4)		(6)
Balance at end of year	$	224	$	231	$	217