Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes.

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

Continuing operations	2023		2022		2021
U.S.	$	(455)	$	1	$	(295)
Non-U.S.		522		804		627
	$	67	$	805	$	332

Discontinued operations	2023		2022		2021
U.S.	$	—	$	—	$	—
Non-U.S.				—		7
	$	—	$	—	$	7

Provision (benefit) for income taxes

	2023		2022		2021
Current:
U.S.	$	13	$	14	$	12
Non-U.S.		114		142		150
		127		156		162
Deferred:
U.S.		(16)		(1)		(1)
Non-U.S.		41		23		6
		25		22		5
Total:
U.S.		(3)		13		11
Non-U.S.		155		165		156
Total for continuing operations		152		178		167
Total for discontinued operations		—		—		—
	$	152	$	178	$	167

Reconciliation of the provision for income taxes

	2023		2022		2021
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	14	$	169	$	70
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		5		34		31
Global intangible low taxed income and Foreign-derived intangible income, net of applicable GILTI credits		12		48		6
Goodwill impairment		85
Divestitures and sale leasebacks of land and building				(34)
Tax law changes		3		(1)		(6)
Tax impact of Brazil indirect tax ruling				(6)		(7)
Change in valuation allowance		85		(36)		93
Tax attribute expiration		7		6		8
Withholding tax		14		24		12
Non-deductible expenses and taxable gains		13		11		24
Tax credits and incentives		(34)		(25)		(67)
Changes in tax reserves and audit settlements		(14)		(4)		10
Mexico inflationary adjustments		(5)		(2)		(6)
Equity earnings		(23)		(20)		(16)
Intercompany financing		(13)		4		10
Other taxes based on income		6		5		5
Other items		(3)		5
Provision for income taxes	$	152	$	178	$	167

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

	2023		2022
Deferred tax assets:
Accrued postretirement benefits	$	23	$	23
Foreign tax credit carryovers		148		149
Operating, capital loss and interest carryovers		339		284
Other credit carryovers		27		24
Accrued liabilities		75		72
Pension liabilities		28		24
Operating lease liabilities		55		54
Other		86		90
Total deferred tax assets		781		720
Deferred tax liabilities:
Property, plant and equipment		119		128
Intangibles and deferred software		50		61
Operating lease right-of-use assets		53		53
Total deferred tax liabilities		222		242
Valuation allowance		(538)		(445)
Net deferred taxes	$	21	$	33

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2023 and 2022 as follows:

	2023		2022
Other assets	$	107	$	117
Deferred taxes		(86)		(84)
Net deferred taxes	$	21	$	33

Reconciliation of the gross unrecognized tax benefits

	2023		2022		2021
Balance at January 1	$	53	$	95	$	93
Additions and reductions for tax positions of prior years		(15)		(10)		3
Additions based on tax positions related to the current year						3
Reductions due to the lapse of the applicable statute of limitations
Reductions due to settlements		(1)		(31)
Foreign currency translation		4		(1)		(4)
Balance at December 31	$	41	$	53	$	95
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	25	$	37	$	75
Accrued interest and penalties at December 31	$	9	$	8	$	16
Interest and penalties included in tax expense for the years ended December 31	$	1	$	(8)	$	2