Income Tax

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Tax

The provision for income tax expense differed from the amounts computed by applying the U.S. federal income tax statutory rate of 21.0% to pre-tax income as a result of the following for the three and six months ended June 30, 2020 and 2019, respectively (dollars in millions):

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Tax provision at U.S. statutory rate	$	41		$	55		$	21		$	100
Increase (decrease) in income taxes resulting from:
Tax rate differences on income in other jurisdictions	8			1			13			1
Differences in tax bases in foreign jurisdictions	(17		)	(6		)	(13		)	(21		)
Deferred tax valuation allowance	8			5			3			23
Amounts related to uncertain tax positions	1			2			7			3
Corporate rate changes	—			—			—			(2		)
Equity based compensation	1			(4		)	—			(5		)
Return to provision adjustments	(2		)	3			(1		)	4
Accrued Expenses	(4		)	1			(1		)	1
Other, net	1			1			—			1
Total provision for income taxes	$	37		$	58		$	29		$	105
Effective tax rate	18.9		%	22.1		%	28.6		%	21.9		%

The effective tax rate for the second quarter and first six months of 2020 differed from the U.S. Statutory rate of 21.0% primarily as a result of benefits from differences in bases in foreign jurisdictions, increases to the valuation allowance, return to provision adjustments, and accruals related to uncertain tax positions.

The effective tax rate for the second quarter and first six months of 2019 were higher than the U.S. Statutory rate of 21.0% primarily as a result of valuation allowances established on losses in foreign jurisdictions, accrual of uncertain tax positions, and return to provision adjustments. These expenses were partially offset by benefits from differences in bases in foreign jurisdictions and excess tax benefits related to equity compensation.