Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes.

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

Continuing operations	2022		2021		2020
U.S.	$	1	$	(295)	$	(85)
Non-U.S.		804		627		438
	$	805	$	332	$	353

Discontinued operations	2022		2021		2020
U.S.	$	—	$	—	$	—
Non-U.S.				7		—
	$	—	$	7	$	—

Provision (benefit) for income taxes

	2022		2021		2020
Current:
U.S.	$	14	$	12	$	8
Non-U.S.		142		150		86
		156		162		94
Deferred:
U.S.		(1)		(1)		1
Non-U.S.		23		6		(6)
		22		5		(5)
Total:
U.S.		13		11		9
Non-U.S.		165		156		80
Total for continuing operations		178		167		89
Total for discontinued operations		—		—		—
	$	178	$	167	$	89

Reconciliation of the provision for income taxes

	2022		2021		2020
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	169	$	70	$	74
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		34		31		34
Global intangible low taxed income and Foreign-derived intangible income, net of applicable GILTI credits		48		6		7
Goodwill and equity investment impairments						6
Divestitures and sale leasebacks of land and building		(34)				(87)
Tax law changes		(1)		(6)		(10)
Tax impact of Brazil indirect tax ruling		(6)		(7)
Change in valuation allowance		(36)		93		59
Tax attribute expiration		6		8		6
Withholding tax		24		12		12
Non-deductible expenses and taxable gains		11		24		14
Tax credits and incentives		(25)		(67)		(11)
Changes in tax reserves and audit settlements		(4)		10		2
Mexico inflationary adjustments		(2)		(6)
Equity earnings		(20)		(16)		(14)
Intercompany financing		4		10		12
Other taxes based on income		5		5		2
Other items		5				(17)
Provision for income taxes	$	178	$	167	$	89

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

	2022		2021
Deferred tax assets:
Accrued postretirement benefits	$	23	$	34
Paddock-related liabilities				137
Foreign tax credit carryovers		149		161
Operating, capital loss and interest carryovers		284		255
Other credit carryovers		24		20
Accrued liabilities		72		54
Pension liabilities		24		19
Operating lease liabilities		54		28
Other		90		68
Total deferred tax assets		720		776
Deferred tax liabilities:
Property, plant and equipment		128		114
Intangibles and deferred software		61		72
Operating lease right-of-use assets		53		28
Total deferred tax liabilities		242		214
Valuation allowance		(445)		(512)
Net deferred taxes	$	33	$	50

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2022 and 2021 as follows:

	2022		2021
Other assets	$	117	$	152
Deferred taxes		(84)		(102)
Net deferred taxes	$	33	$	50

Reconciliation of the gross unrecognized tax benefits

	2022		2021		2020
Balance at January 1	$	95	$	93	$	99
Additions and reductions for tax positions of prior years		(10)		3		(20)
Additions based on tax positions related to the current year				3		11
Reductions due to the lapse of the applicable statute of limitations
Reductions due to settlements		(31)
Foreign currency translation		(1)		(4)		3
Balance at December 31	$	53	$	95	$	93
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	37	$	75	$	80
Accrued interest and penalties at December 31	$	8	$	16	$	14
Interest and penalties included in tax expense for the years ended December 31	$	(8)	$	2	$	3