Income Tax Income Tax

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Tax

The provision for income tax differed from the amounts computed by applying the U.S. federal income tax statutory rate of 21% to pre-tax income as a result of the following for the three months ended March 31, 2020 and 2019, respectively (dollars in millions):

	Three months ended March 31,
	2020			2019
Tax provision at U.S. statutory rate	$	(20	)	$	45
Increase (decrease) in income taxes resulting from:
Tax rate differences on income in other jurisdictions	4			1
Differences in tax bases in foreign jurisdictions	3			(15		)
Deferred tax valuation allowance	(4		)	19
Amounts related to uncertain tax positions	6			1
Corporate rate changes	—			(2		)
Equity compensation excess benefit	(1		)	(2		)
Non-Deductible Expenses	4			—
Total provision for income taxes	$	(8	)	$	47
Effective tax rate	8.9		%	21.7		%

The effective tax rate on the pre-tax loss for the three months ended March 31, 2020, was lower than the U.S. Statutory rate of 21% primarily as a result of income earned in jurisdictions with tax rates higher than the U.S. and tax expense related to uncertain tax positions, which was partially offset by valuation allowance releases in various jurisdictions. The effective tax rate for the three months ended March 31, 2019, was higher than the U.S. Statutory tax rate of 21% primarily as a result of income in non-U.S. jurisdictions with tax rates greater than the U.S. and losses in foreign jurisdictions for which the company established a valuation allowance, which was partially offset with tax benefits related to bases differences in non-U.S. jurisdictions.