Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at September 30, 2021 and December 31, 2020 is as follows:

(Dollars in millions)	September 30, 2021		December 31, 2020
Gross deferred tax assets	$	118	$	153
Less valuation allowance	(13)		(11)
Deferred tax assets	105		142
Deferred tax liabilities	51		55
Deferred tax assets, net	$	54	$	87

Our deferred tax balance associated with our retirement benefit plans includes a deferred tax asset of $12 million and $14 million as September 30, 2021 and December 31, 2020, respectively, that are recorded in accumulated other comprehensive earnings to recognize the funded status of our retirement plans. See Note 11: Pension and Other Postretirement Benefits for additional details.