Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
	(in millions)
U.S. income (loss)	$	24	$	(2)	$	(65)
Non-U.S. income	966		912		2,019
Income before income taxes and equity loss	$	990	$	910	$	1,954

Schedule of Components of Income Tax Expense (Benefit)

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

	Year Ended December 31,
	2022		2021		2020
	(in millions)
Current income tax expense (benefit):
U.S. federal	$	45	$	1	$	(53)
Non-U.S.	205		156		154
U.S. state and local	15		4		—
Total current	265		161		101
Deferred income tax expense (benefit), net:
U.S. federal	(43)		(17)		(14)
Non-U.S.	(90)		(43)		(37)
U.S. state and local	(11)		—		(1)
Total deferred	(144)		(60)		(52)
Total income tax provision	$	121	$	101	$	49

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,
	2022			2021			2020
	(in millions)
Notional U.S. federal income taxes at statutory rate	$	208		$	191		$	410
Income taxed at other rates	(61)			(81)			(339)
Change in valuation allowance	(63)			(17)			10
Other change in tax reserves	10			19			30
Intragroup reorganizations	—			(7)			(49)
Withholding taxes	38			37			26
Tax credits	(19)			(23)			(16)
Change in tax law	—			(7)			(2)
Other adjustments	8			(11)			(21)
Total income tax expense	$	121		$	101		$	49
Effective tax rate	12		%	11		%	3		%

Schedule of Deferred Tax Assets and Liabilities

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

	December 31,
	2022		2021
	(in millions)
Deferred tax assets:
Pension	$	56	$	76
Employee benefits	26		30
Net operating loss carryforwards	735		699
Warranty and other liabilities	85		77
Operating lease liabilities	98		78
Capitalized R&D	111		—
Other	222		184
Total gross deferred tax assets	1,333		1,144
Less: valuation allowances	(756)		(766)
Total deferred tax assets (1)	$	577	$	378
Deferred tax liabilities:
Fixed assets	$	45	$	55
Tax on unremitted profits of certain foreign subsidiaries	69		65
Intangibles	588		174
Operating lease right-of-use assets	97		78
Total gross deferred tax liabilities	799		372
Net deferred tax (liabilities) assets	$	(222)	$	6

(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,
	2022		2021
	(in millions)
Long-term assets	$	259	$	159
Long-term liabilities	(481)		(153)
Total deferred tax (liability) asset	$	(222)	$	6

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,
	2022		2021		2020
	(in millions)
Balance at beginning of year	$	224	$	231	$	217
Additions related to current year	12		12		35
Additions related to prior years	29		20		31
Reductions related to prior years	(33)		(36)		(20)
Reductions due to expirations of statute of limitations	(7)		(3)		(28)
Settlements	(1)		—		(4)
Balance at end of year	$	224	$	224	$	231