Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income (Loss) before Income Taxes

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

(In millions)	2022		2021			2020
U.S.	$	41	$	(102	)	$	(993	)
Foreign		358		615			(147	)
	$	399	$	513		$	(1,140	)

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)	2022			2021			2020
U.S. federal income tax expense (benefit) at the statutory rate of 21%	$	84		$	108		$	(239	)
Net foreign losses (income) with no tax due to valuation allowances		45			3			37
Adjustment for foreign income taxed at different rates		33			24			7
Net establishment (release) of foreign valuation allowances and write off of deferred taxes		24			(1	)		—
U.S. charges (benefits) related to foreign tax credits, R&D and foreign derived intangible deduction		(7	)		(4	)		(9	)
State income taxes, net of U.S. federal benefit		6			1			(17	)
Deferred tax impact of enacted rate and law changes		(6	)		(61	)		(18	)
Net establishment (release) of uncertain tax positions		(4	)		(6	)		6
Net establishment (release) of U.S. valuation allowances		—			(340	)		310
Goodwill impairment		—			—			34
Other		15			9			(1	)
United States and Foreign Tax Expense (Benefit)	$	190		$	(267	)	$	110

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)	2022			2021			2020
Current:
Federal	$	—		$	1		$	(5	)
Foreign		150			166			95
State		12			37			(3	)
		162			204			87
Deferred:
Federal		(28	)		(362	)		63
Foreign		46			(23	)		(31	)
State		10			(86	)		(9	)
		28			(471	)		23
United States and Foreign Tax Expense (Benefit)	$	190		$	(267	)	$	110

Deferred Tax Assets and Liabilities

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

(In millions)	2022			2021
Tax loss carryforwards and credits	$	1,160		$	1,274
Capitalized research and development expenditures		481			453
Prepaid royalty income		457			534
Partnership basis differences		341			364
Accrued expenses deductible as paid		320			331
Lease liabilities		70			101
Postretirement benefits and pensions		63			126
Rationalizations and other provisions		52			26
Vacation and sick pay		26			25
Other		100			98
		3,070			3,332
Valuation allowance		(1,072	)		(1,044	)
Total deferred tax assets		1,998			2,288
Property basis differences		(407	)		(503	)
Intangible property basis differences related to Cooper Tire acquisition		(214	)		(227	)
Right-of-use assets		(68	)		(96	)
Tax on undistributed earnings of subsidiaries		—			(1	)
Total net deferred tax assets	$	1,309		$	1,461

Reconciliation of Unrecognized Tax Benefits

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

(In millions)	2022			2021			2020
Balance at January 1	$	90		$	85		$	82
Increases related to prior year tax positions		10			28			26
Decreases related to prior year tax positions		—			(12	)		(1	)
Settlements		(12	)		(5	)		(15	)
Foreign currency impact		(1	)		(7	)		(7	)
Increases related to current year tax positions		2			3			—
Lapse of statute of limitations		(2	)		(2	)		—
Balance at December 31	$	87		$	90		$	85