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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Geographic Allocation of Income and Provision for Income Taxes
Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes For the Year Ended December 31,
(In millions)202120202019
Income (loss) from continuing operations before income taxes
Domestic$941 $(83)$(1,352)
Foreign1,405 758 1,036 
Income (loss) from continuing operations before income taxes$2,346 $675 $(316)
Current tax expense (benefit)
Federal$(13)$28 $(11)
State and local6 9 1 
Foreign329 222 317 
Total current tax expense (benefit)$322 $259 $307 
Deferred tax expense (benefit)
Federal$164 $(116)$(392)
State and local55 27 156 
Foreign(17)(251)(117)
Total deferred tax expense (benefit)$202 $(340)$(353)
Provision for (benefit from) income taxes on continuing operations524 (81)(46)
Net income (loss) from continuing operations after taxes$1,822 $756 $(270)
Reconciliation to US Statutory Rate
Reconciliation to U.S. Statutory RateFor the Year Ended December 31,
202120202019
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
Effective tax rates on international operations - net 1
(2.5)(13.9)(18.4)
Acquisitions, divestitures and ownership restructuring activities 2
(0.1)(0.3)(10.7)
U.S. research and development credit(2.4)(2.9)7.0 
Exchange gains/losses 3
1.9 3.5 (1.8)
State and local incomes taxes - net2.1 4.0 3.2 
Impact of Swiss Tax Reform4
0.2 (27.0)11.9 
Excess tax benefits/deficiencies from stock compensation(0.2)1.0 (0.6)
Tax settlements and expiration of statute of limitations— 0.4 3.9 
Other - net2.3 2.2 (0.9)
Effective tax rate on income from continuing operations22.3 %(12.0)%14.6 %
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. Includes a tax benefit of $(51) million for the year ended December 31, 2020, related to a return to accrual adjustment associated with an elective change in accounting method for the 2019 tax year impact of foreign tax provisions.
2.    See Notes 4 - Common Control Business Combination, and Note 5 - Divestitures and Other Transactions, to the Consolidated Financial Statements, for additional information.
3.    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.
4.    Reflects tax benefits of $(182) million primarily driven by the recognition of an elective cantonal component of the recent enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform") for the year ended December 31, 2020. Reflects tax benefits of $(38) million associated with the enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform"), for the year ended December 31, 2019.
Deferred Tax Balances
Deferred Tax Balances at December 31,20212020
(In millions)AssetsLiabilitiesAssetsLiabilities
Property1
$— $341 $— $297 
Tax loss and credit carryforwards2,3
464 — 497 — 
Accrued employee benefits904 — 1,415 — 
Other accruals and reserves1
309 — 365 — 
Intangibles— 2,260 — 2,418 
Inventory153 — 127 — 
Research and development capitalization224 — 186 — 
Investments36 — 56 — 
Unrealized exchange gains/losses— 10 2 — 
Other – net105 — 91 — 
Subtotal$2,195 $2,611 $2,739 $2,715 
Valuation allowances3
(366)— (453)— 
Total$1,829 $2,611 $2,286 $2,715 
Net Deferred Tax Asset (Liability)$(782)$(429)
1.    Prior year classifications in property and other accruals and reserves have been adjusted from their previous presentation. Adjustments did not impact the amount of the net deferred tax asset (liability) recorded in the Consolidated Balance Sheets.    
2.    Primarily related to the realization of recorded tax benefits on tax loss and credit carryforwards from operations in the United States, Brazil, and Spain.    
3.    In connection with the company's 2021 internal legal entity restructuring, the company reduced various state net operating loss carryforwards and corresponding full valuation allowances by $61 million. There was no impact on the statement of operations. During the year ended December 31, 2020, the company established a $19 million state tax valuation allowance in the U.S. based on a change in judgement about the realizability of a deferred tax asset.
Operating Loss and Tax Credit Carryforwards
Operating Loss and Tax Credit CarryforwardsDeferred Tax Asset
(In millions)20212020
Operating loss carryforwards
Expire within 5 years$123 $99 
Expire after 5 years or indefinite expiration210 343 
Total operating loss carryforwards$333 $442 
Tax credit carryforwards
Expire within 5 years$14 $14 
Expire after 5 years or indefinite expiration117 41 
Total tax credit carryforwards$131 $55 
Total Operating Loss and Tax Credit Carryforwards$464 $497 
Total Gross Unrecognized Tax Benefits
Total Gross Unrecognized Tax BenefitsFor the Year Ended December 31,
(In millions)202120202019
Total unrecognized tax benefits as of beginning of period$395 $426 $749 
Decreases related to positions taken on items from prior years(7)(14)(167)
Increases related to positions taken on items from prior years13 5 77 
Increases related to positions taken in the current year9 6 54 
Settlement of uncertain tax positions with tax authorities(17)(18)(9)
Impact of Internal Reorganizations— — (278)
Decreases due to expiration of statutes of limitations(16)(7)— 
Exchange (gain) loss— (3)— 
Total unrecognized tax benefits as of end of period$377 $395 $426 
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate$157 $156 $188 
Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations$1 $(2)$(4)
Total accrual for interest and penalties associated with unrecognized tax benefits at end of period$11 $18 $24 
Tax Year Subject to Examination
Tax Years Subject to Examination by Major Tax Jurisdiction at December 31, 2021Earliest Open Year
Jurisdiction
Argentina2015
Brazil2014
Canada2012
China2014
France2019
India2015
Italy2016
Switzerland2016
United States:
Federal income tax2012
State and local income tax2008