Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Geographic Allocation of Income and Provision for Income Taxes

Geographic Allocation of (Loss) Income and Provision for (Benefit from) Income Taxes	Successor									Predecessor
(In millions)	For the Year Ended December 31, 2019			For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017			For the Period January 1 through August 31, 2017
(Loss) Income from continuing operations before income taxes
Domestic	$	(1,352	)	$	(5,040	)	$	(961	)	$	(519	)
Foreign	1,036			(1,766		)	500			482
Loss from continuing operations before income taxes	$	(316	)	$	(6,806	)	$	(461	)	$	(37	)
Current tax expense (benefit)
Federal	$	(11	)	$	(112	)	$	8		$	(581	)
State and local	1			(32		)	11			(117		)
Foreign	317			446			287			81
Total current tax expense (benefit)	$	307		$	302		$	306		$	(617	)
Deferred tax (benefit) expense
Federal	$	(392	)	$	(124	)	$	(2,373	)	$	188
State and local	156			(39		)	3			79
Foreign	(117		)	(170		)	(157		)	(45		)
Total deferred tax (benefit) expense	$	(353	)	$	(333	)	$	(2,527	)	$	222
Benefit from income taxes on continuing operations	(46		)	(31		)	(2,221		)	(395		)
Net (loss) income from continuing operations after taxes	$	(270	)	$	(6,775	)	$	1,760		$	358

Reconciliation to US Statutory Rate

Reconciliation to U.S. Statutory Rate	Successor						Predecessor
	For the Year Ended December 31, 2019		For the Year Ended December 31, 2018		For the Period September 1 through December 31, 2017		For the Period January 1 through August 31, 2017
Statutory U.S. federal income tax rate	21.0	%	21.0	%	35.0	%	35.0	%
Equity earning effect	0.1		0.1		1.9		(2.7	)
Effective tax rates on international operations - net 1	(18.4	)	0.4		24.3		244.9
Acquisitions, divestitures and ownership restructuring activities 2, 3, 4	(10.7	)	(2.3	)	63.0		(64.7	)
U.S. research and development credit	7.0		0.1		1.4		24.4
Exchange gains/losses 5	(1.8	)	(1.3	)	(8.8	)	650.1
SAB 118 Impact of Enactment of U.S. Tax Reform6	—		(3.0	)	371.2		—
Impact of Swiss Tax Reform7	11.9		—		—		—
Excess tax benefits (tax deficiency) from stock compensation	(0.6	)	0.1		1.0		38.3
Tax settlements and expiration of statute of limitations8	3.9		(0.1	)	—		146.4
Goodwill impairment 9	—		(15.2	)	—		—
Other - net	2.2		0.7		(7.2	)	(4.1	)
Effective tax rate on income from continuing operations	14.6	%	0.5	%	481.8	%	1,067.6	%

1. Includes the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and other permanent differences between tax and U.S. GAAP results.

2. See Notes 4 - Common Control Business Combination, and Note 5 - Divestitures and Other Transactions, for additional information.

3. Includes a net tax charge of $50 million related to repatriation activities to facilitate the Business Separations for the year ended December 31, 2018.

4. Includes a net tax charge of $25 million and a net tax benefit of $261 million for the year ended December 31, 2018 and the period September 1 through December 31, 2017, respectively, related to an internal legal entity restructuring associated with the Business Separations.

5. Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 9 - Supplementary Information, and Note 22 - Financial Instruments, under the heading Foreign Currency Risk.

6. Reflects a net tax benefit of $2,067 million and a net tax charge of $164 million associated with the company's completion of the accounting for the tax effects of The Act for the period September 1 through December 31, 2017 and the year ended December 31, 2018, respectively.

7. Reflects tax benefits of $38 million associated with the enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform").

8. The period January 1 through August 31, 2017 includes a tax benefit of $46 million related to changes in accruals for certain prior year tax positions and the tax effect of the associated accrued interest reversals.

9.

Reflects the impact of the non-tax-deductible, non-cash impairment charge for the agriculture reporting unit and corresponding $75 million tax charge associated with a valuation allowance recorded against the net deferred tax asset position of a legal entity in Brazil for the year ended December 31, 2018.

Deferred Tax Balances

Deferred Tax Balances at December 31	2019					2018
(In millions)	Assets			Liabilities		Assets			Liabilities
Property	$	—		$	369	$	—		$	344
Tax loss and credit carryforwards1	761			—		842			—
Accrued employee benefits	1,717			—		1,392			—
Other accruals and reserves	135			—		263			—
Intangibles	—			2,738		—			2,648
Inventory	25			—		—			40
Long-term debt	—			—		24			—
Investments	53			—		7			—
Unrealized exchange gains/losses	—			39		—			140
Other – net	279			—		137			—
Subtotal	$	2,970		$	3,146	$	2,665		$	3,172
Valuation allowances2	(457		)	—		(669		)	—
Total	$	2,513		$	3,146	$	1,996		$	3,172
Net Deferred Tax Liability	$	(633	)			$	(1,176	)

1. Primarily related to the realization of recorded tax benefits on tax loss and credit carryforwards from operations in the United States, Brazil, and Spain.    

2. During the year ended December 31, 2019, the company released a valuation allowance against the net deferred tax asset position of a legal entity in Switzerland in connection with an internal merger, resulting in a tax benefit of $34 million. During the year ended December 31, 2018, the company established a full valuation allowance against the net deferred tax asset position of a legal entity in Brazil due to revised financial projections, resulting in tax expense of $75 million. See Note 15 - Goodwill and Other Intangible Assets, for additional information.

Operating Loss and Tax Credit Carryforwards

Operating Loss and Tax Credit Carryforwards	Deferred Tax Asset
(In millions)	2019		2018
Operating loss carryforwards
Expire within 5 years	$	131	$	78
Expire after 5 years or indefinite expiration	400		559
Total operating loss carryforwards	$	531	$	637
Tax credit carryforwards
Expire within 5 years	$	30	$	27
Expire after 5 years or indefinite expiration	200		178
Total tax credit carryforwards	$	230	$	205
Total Operating Loss and Tax Credit Carryforwards	$	761	$	842

Total Gross Unrecognized Tax Benefits

Total Gross Unrecognized Tax Benefits	Successor									Predecessor
(In millions)	For the Year Ended December 31, 2019			For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017			For the Period January 1 through August 31, 2017
Total unrecognized tax benefits as of beginning of period	$	749		$	741		$	709		$	596
Decreases related to positions taken on items from prior years	(167		)	(44		)	(2		)	(19		)
Increases related to positions taken on items from prior years	77			74			9			3
Increases related to positions taken in the current year	54			9			28			49
Settlement of uncertain tax positions with tax authorities	(9		)	(13		)	1			(6		)
Impact of Internal Reorganizations	(278		)	—			—			—
Decreases due to expiration of statutes of limitations	—			(5		)	(5		)	(86		)
Exchange (gain) loss	—			(13		)	1			1
Total unrecognized tax benefits as of end of period	$	426		$	749		$	741		$	538
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	188		$	45		$	51		$	131
Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations	$	(4	)	$	11		$	1		$	(27	)
Total accrual for interest and penalties associated with unrecognized tax benefits at end of period	$	24		$	45		$	47		$	40

Tax Year Subject to Examination

Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31,	Earliest Open Year
Jurisdiction
Argentina	2013
Brazil	2014
Canada	2013
China	2008
France	2016
India	1996
Italy	2015
Switzerland	2015
United States:
Federal income tax	2012
State and local income tax	2001