Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components Of Earnings Before Income Taxes by Geographic Region

The following table sets forth the geographic split of earnings before income taxes:

	Year Ended
(In millions)	December 31
	2020		2019		2018
United States	$	442	$	756	$	972
Foreign	1,441		832		1,088
	$	1,883	$	1,588	$	2,060

Significant Components Of Income Taxes

Significant components of income taxes are as follows:

(In millions)	Year Ended December 31
	2020		2019		2018
Current
Federal	$	(164)	$	37	$	96
State	4		11		25
Foreign	186		181		171
Deferred
Federal	41		47		(55)
State	(10)		1		(16)
Foreign	44		(68)		24
	$	101	$	209	$	245

Significant Components Of Deferred Tax Liabilities And Assets

Significant components of deferred tax liabilities and assets are as follows:

	December 31, 2020		December 31, 2019
	(In millions)
Deferred tax liabilities
Property, plant, and equipment	$	903	$	1,012
Intangibles	334		286
Right of use assets	223		220
Equity in earnings of affiliates	64		72
Inventory reserves	25		32
Debt exchange	53		80
Reserves and other accruals	195		20
Other	173		109
	$	1,970	$	1,831
Deferred tax assets
Pension and postretirement benefits	$	163	$	155
Lease liabilities	227		225
Stock compensation	80		62
Foreign tax loss carryforwards	470		411
Capital loss carryforwards	70		62
State tax attributes	79		74
Reserves and other accruals	42		—
Other	136		147
Gross deferred tax assets	1,267		1,136
Valuation allowances	(339)		(325)
Net deferred tax assets	$	928	$	811
Net deferred tax liabilities	$	1,042	$	1,020
The net deferred tax liabilities are classified as follows:
Noncurrent assets (foreign)	$	260	$	174
Noncurrent liabilities	(957)		(969)
Noncurrent liabilities (foreign)	(345)		(225)
	$	(1,042)	$	(1,020)

Reconciliation Of The Statutory Federal Income Tax Rate To The Company's Effective Tax Rate On Earnings

Reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate on earnings is as follows:

	Year Ended
	December 31
	2020		2019		2018
Statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	(0.3)		0.6		0.3
Foreign earnings taxed at rates other than the U.S. statutory rate	(4.5)		(0.9)		(1.5)
Foreign currency effects/remeasurement	(1.1)		0.7		(1.9)
Income tax adjustment to filed returns	(0.4)		0.2		(1.9)
Tax benefit on U.S. biodiesel credits	(3.3)		(7.5)		(2.3)
Tax benefit on U.S. railroad credits	(8.0)		(3.6)		—
Tax on Global Intangible Low Taxed Income (GILTI)	2.9		1.4		1.0
Tax benefit on Foreign Derived Intangible Income Deduction (FDII)	(0.1)		—		(1.0)
U.S. tax reform impacts	(0.3)		0.4		(1.1)
Other	(0.5)		0.9		(0.7)
Effective income tax rate	5.4	%	13.2	%	11.9	%

Unrecognized Tax Benefits

The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2020 and 2019 as follows:

	Unrecognized Tax Benefits
	December 31, 2020		December 31, 2019
	(In millions)
Beginning balance	$	130	$	107
Additions related to current year’s tax positions	2		8
Additions related to prior years’ tax positions	37		—
Additions (adjustments) related to acquisitions	(1)		32
Reductions related to prior years’ tax positions	(3)		(14)
Reductions related to lapse of statute of limitations	(9)		(2)
Settlements with tax authorities	(5)		(1)
Ending balance	$	151	$	130