Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes.

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

Continuing operations	2020		2019		2018
U.S.	$	(85)	$	(535)	$	(100)
Non-U.S.		438		274		377
	$	353	$	(261)	$	277

Discontinued operations	2020		2019		2018
U.S.	$	—	$	—	$	—
Non-U.S.				(3)		113
	$	—	$	(3)	$	113

Provision (benefit) for income taxes

	2020		2019		2018
Current:
U.S.	$	8	$	12	$	8
Non-U.S.		86		99		109
		94		111		117
Deferred:
U.S.		1
Non-U.S.		(6)		7		(9)
		(5)		7		(9)
Total:
U.S.		9		12		8
Non-U.S.		80		106		100
Total for continuing operations		89		118		108
Total for discontinued operations		—		—		—
	$	89	$	118	$	108

Reconciliation of the provision for income taxes

	2020		2019		2018
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	74	$	(55)	$	58
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		34		14		25
Global intangible low taxed income and Foreign-derived intangible income, net of applicable GILTI credits		7		28		32
U.S. Tax Cuts and Jobs Act: transition tax, net of foreign tax credits						(2)
Goodwill and equity investment impairments		6		125
Tax impact of sale of ANZ business		(87)
Tax law changes		(10)				4
Change in valuation allowance: U.S. tax law change						(2)
Change in valuation allowance: other		59		(31)		(18)
Tax attribute expiration		6		11		6
Withholding tax		12		16		11
Non-deductible expenses and taxable gains		14		8		4
Tax credits and incentives		(11)		(18)		(23)
Changes in tax reserves and audit settlements		2		20		13
Mexico inflationary adjustments				4		8
Equity earnings		(14)		(14)		(13)
Intercompany financing		12		(4)
Other taxes based on income		2		3		7
Other items		(17)		11		(2)
Provision for income taxes	$	89	$	118	$	108

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

	2020		2019
Deferred tax assets:
Accrued postretirement benefits	$	35	$	34
Asbestos-related liabilities				102
Paddock-related liabilities		107
Foreign tax credit carryovers		130		117
Operating, capital loss and interest carryovers		276		272
Other credit carryovers		19		18
Accrued liabilities		55		67
Pension liabilities		85		91
Operating lease liabilities		33		50
Other		46		27
Total deferred tax assets		786		778
Deferred tax liabilities:
Property, plant and equipment		112		112
Intangibles and deferred software		79		86
Operating lease right-of-use assets		33		50
Total deferred tax liabilities		224		248
Valuation allowance		(493)		(462)
Net deferred taxes	$	69	$	68

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2020 and 2019 as follows:

	2020		2019
Other assets	$	178	$	178
Deferred taxes		(109)		(110)
Net deferred taxes	$	69	$	68

Reconciliation of the gross unrecognized tax benefits

	2020		2019		2018
Balance at January 1	$	99	$	87	$	79
Additions and reductions for tax positions of prior years		(20)		16		(4)
Additions based on tax positions related to the current year		11		12		15
Reductions due to settlements				(16)
Foreign currency translation		3				(3)
Balance at December 31	$	93	$	99	$	87
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	80	$	86	$	78
Accrued interest and penalties at December 31	$	14	$	11	$	10
Interest and penalties included in tax expense for the years ended December 31	$	3	$	1	$	2