Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income (Loss) before Income Taxes

The components of Income (Loss) before Income Taxes follow:

(In millions)	2021			2020			2019
U.S.	$	(102	)	$	(993	)	$	(39	)
Foreign		615			(147	)		216
	$	513		$	(1,140	)	$	177

Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax Expense (Benefit)

A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax Expense (Benefit) follows:

(In millions)	2021			2020			2019
U.S. federal income tax expense (benefit) at the statutory rate of 21%	$	108		$	(239	)	$	37
Net establishment (release) of U.S. valuation allowances		(340	)		310			(98	)
Deferred tax impact of enacted tax rate and law changes		(61	)		(18	)		3
Adjustment for foreign income taxed at different rates		24			7			16
Net establishment (release) of uncertain tax positions		(6	)		6			7
U.S. charges (benefits) related to foreign tax credits, R&D and foreign derived intangible deduction		(4	)		(9	)		(17	)
Net foreign losses (income) with no tax due to valuation allowances		3			37			48
State income taxes, net of U.S. federal benefit		1			(17	)		(1	)
Net establishment (release) of foreign valuation allowances		(1	)		—			140
Goodwill impairment		—			34			—
Federal and state tax on accelerated royalty income transaction		—			—			334
Other		9			(1	)		5
United States and Foreign Tax Expense (Benefit)	$	(267	)	$	110		$	474

Components of United States and Foreign Tax Expense (Benefit)

The components of United States and Foreign Tax Expense (Benefit) by taxing jurisdiction, follow:

(In millions)	2021			2020			2019
Current:
Federal	$	1		$	(5	)	$	—
Foreign		166			95			134
State		37			(3	)		17
		204			87			151
Deferred:
Federal		(362	)		63			133
Foreign		(23	)		(31	)		153
State		(86	)		(9	)		37
		(471	)		23			323
United States and Foreign Tax Expense (Benefit)	$	(267	)	$	110		$	474

Deferred Tax Assets and Liabilities

Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow:

(In millions)	2021			2020
Tax loss carryforwards and credits	$	1,274		$	1,570
Prepaid royalty income		534			629
Capitalized research and development expenditures		453			421
Partnership basis differences		364			—
Accrued expenses deductible as paid		331			255
Postretirement benefits and pensions		126			209
Lease liabilities		101			76
Rationalizations and other provisions		26			34
Vacation and sick pay		25			21
Other		98			133
		3,332			3,348
Valuation allowance		(1,044	)		(1,469	)
Total deferred tax assets		2,288			1,879
Property basis differences		(503	)		(420	)
Intangible property basis differences related to Cooper Tire acquisition		(227	)		—
Right-of-use assets		(96	)		(75	)
Tax on undistributed earnings of subsidiaries		(1	)		(1	)
Total net deferred tax assets	$	1,461		$	1,383

Reconciliation of Unrecognized Tax Benefits

A summary of our unrecognized tax benefits and changes during the year follows:

(In millions)	2021			2020			2019
Balance at January 1	$	85		$	82		$	71
Increases related to prior year tax positions		28			26			24
Decreases related to prior year tax positions		(12	)		(1	)		—
Settlements		(5	)		(15	)		(11	)
Foreign currency impact		(7	)		(7	)		(2	)
Increases related to current year tax positions		3			—			—
Lapse of statute of limitations		(2	)		—			—
Balance at December 31	$	90		$	85		$	82