Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Provision (benefit) for income taxes calculated based on components of earnings (loss) before income taxes

Continuing operations	2019		2018		2017
U.S.	$	(535)	$	(100)	$	(43)
Non-U.S.		274		377		318
	$	(261)	$	277	$	275

Discontinued operations	2019		2018		2017
U.S.	$	—	$	—	$	—
Non-U.S.		(3)		113		(3)
	$	(3)	$	113	$	(3)

Provision (benefit) for income taxes

	2019		2018		2017
Current:
U.S.	$	12	$	8	$	(5)
Non-U.S.		99		109		87
		111		117		82
Deferred:
U.S.		—		—		6
Non-U.S.		7		(9)		(18)
		7		(9)		(12)
Total:
U.S.		12		8		1
Non-U.S.		106		100		69
Total for continuing operations		118		108		70
Total for discontinued operations		—		—		—
	$	118	$	108	$	70

Reconciliation of the provision for income taxes

	2019		2018		2017
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	(55)	$	58	$	96
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		14		25		(29)
Global intangible low taxed income and Foreign-derived intangible income		38		32
U.S. Tax Cuts and Jobs Act: transition tax, net of foreign tax credits				(2)		2
Goodwill impairment		125
Tax law changes				4		152
Change in valuation allowance: U.S. tax law change				(2)		(162)
Change in valuation allowance: other		(31)		(18)		(283)
Tax attribute expiration		11		6		330
Withholding tax		16		10		8
Non-deductible expenses		8		4		9
Tax credits and incentives		(28)		(23)		(37)
Changes in tax reserves and audit settlements		20		13		(18)
Mexico inflationary adjustments		4		8		13
Equity earnings		(14)		(13)		(13)
Other taxes based on income		3		7		10
Other items		7		(1)		(8)
Provision for income taxes	$	118	$	108	$	70

Significant components of deferred tax assets and liabilities and deferred taxes included in the Consolidated Balance Sheets

	2019		2018
Deferred tax assets:
Accrued postretirement benefits	$	34	$	38
Asbestos-related liabilities		102		127
Foreign tax credit carryovers		117		96
Operating, capital loss and interest carryovers		272		300
Other credit carryovers		18		18
Accrued liabilities		67		65
Pension liabilities		91		92
Operating lease liabilities		50
Other		27		43
Total deferred tax assets		778		779
Deferred tax liabilities:
Property, plant and equipment		112		97
Intangibles and deferred software		86		92
Operating lease right-of-use assets		50
Total deferred tax liabilities		248		189
Valuation allowance		(462)		(495)
Net deferred taxes	$	68	$	95

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2019 and 2018 as follows:

	2019		2018
Other assets	$	178	$	191
Deferred taxes		(110)		(96)
Net deferred taxes	$	68	$	95

Reconciliation of the gross unrecognized tax benefits

	2019		2018		2017
Balance at January 1	$	87	$	79	$	74
Additions and reductions for tax positions of prior years		16		(4)		1
Additions based on tax positions related to the current year		12		15		17
Reductions due to the lapse of the applicable statute of limitations						(7)
Reductions due to settlements		(16)				(9)
Foreign currency translation				(3)		3
Balance at December 31	$	99	$	87	$	79
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	86	$	78	$	72
Accrued interest and penalties at December 31	$	11	$	10	$	8
Interest and penalties included in tax expense for the years ended December 31	$	1	$	2	$	(15)