Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

For the years ended December 31, income (loss) from continuing operations before income taxes consisted of the following:



In millions	2019			2018			2017
Income (loss) before income taxes
United States	$	(25	)	$	(262	)	$	149
Foreign	366			301			333
Total income (loss) from continuing operations before income taxes	$	341		$	39		$	482

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

For the years ended December 31, income tax expense (benefit) consisted of the following:



In millions	2019			2018			2017
Income tax expense (benefit)
Current
Federal	$	1		$	18		$	14
State	2			—			2
Foreign	78			42			54
Deferred
Federal	(19		)	(2		)	178
State	—			1			(3		)
Foreign	(335		)	14			(3		)
Total income tax expense (benefit)	$	(273	)	$	73		$	242

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31:



In millions	2019			2018			2017
Income tax expense at the U.S. federal tax rate of 21% for 2019 and 2018, respectively and 35% for 2017	$	72		$	8		$	169
Foreign income tax differential	10			20			(38		)
State and local income taxes (net of federal effect)	3			2			(1		)
Other U.S. permanent book/tax differences	3			—			1
Meals and entertainment expense	2			2			2
Executive compensation	9			4			1
Employee share-based payments	2			3			(3		)
Impact of intangible asset transfer	(245		)	—			—
Gains/losses on entity liquidations	(12		)	—			—
Foreign derived intangible income deduction	(7		)	(1		)	—
Change in branch tax status	(17		)	(9		)	—
Goodwill impairment	—			30			—
Research and development tax credits	(5		)	(6		)	(4		)
U.S. manufacturing deduction	—			—			(9		)
U.S. valuation allowance ⁽¹⁾	(16		)	16			—
U.S tax reform	—			37			130
Foreign valuation allowance	(74		)	2			—
Change in liability for unrecognized tax benefits ⁽¹⁾	4			(23		)	(2		)
Prior period adjustments	(1		)	(11		)	—
Other, net	(1		)	(1		)	(4		)
Total income tax expense (benefit)	$	(273	)	$	73		$	242

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income tax assets and liabilities included in the Consolidated Balance Sheets as of December 31 were as follows:



In millions	2019			2018
Deferred income tax assets
Employee pensions and other benefits	$	243		$	223
Other balance sheet reserves and allowances	182			141
Tax loss and credit carryforwards	625			682
Capitalized research and development	47			53
Lease liabilities	104			—
Intangibles	127			—
Property, plant and equipment	11			11
Other	9			38
Total deferred income tax assets	1,348			1,148
Valuation allowance	(352		)	(485		)
Net deferred income tax assets	996			663
Deferred income tax liabilities
Intangibles	—			151
Right of use assets	102			—
Capitalized software	98			78
Other	—			7
Total deferred income tax liabilities	200			236
Total net deferred income tax assets	$	796		$	427

Summary of Income Tax Contingencies [Table Text Block]

The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended December 31:



In millions	2019			2018			2017
Gross unrecognized tax benefits - January 1	$	110		$	196		$	183
Increases related to tax positions from prior years	7			9			3
Decreases related to tax positions from prior years	(4		)	(50		)	(1		)
Increases related to tax provisions taken during the current year	14			9			23
Settlements with tax authorities	(5		)	(45		)	(4		)
Lapses of statutes of limitation	(1		)	(9		)	(8		)
Total gross unrecognized tax benefits - December 31	$	121		$	110		$	196