Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2021

Taxes on Income

Schedule of amount of earnings (loss) before income taxes

	Years Ended December 31,
($ in millions)	2021		2020		2019
U.S.	$	146	$	196	$	224
Non-U.S.		862		491		384
	$	1,008	$	687	$	608

Schedule of provision (benefit) for income tax expense

	Years Ended December 31,
($ in millions)	2021		2020		2019
Current
U.S.	$	(20)	$	(33)	$	(1)
State and local		8		3		7
Non-U.S.		133		112		110
Total current		121		82		116
Deferred
U.S.		(7)		(44)		(26)
State and local		(4)		(5)		(1)
Non-U.S.		46		66		(18)
Total deferred		35		17		(45)
Tax provision (benefit)	$	156	$	99	$	71

Schedule of income tax provision recorded within the consolidated statements of earnings which differ from the provisions determined by applying the U.S. statutory tax rate to pretax earnings

	Years Ended December 31,
($ in millions)	2021			2020			2019
Statutory U.S. federal income tax	$	212		$	144		$	128
Increase (decrease) due to:
Non-U.S. tax rate differences including tax holidays		(32)			2			(11)
Non-U.S. tax law and rate changes		43			18			—
U.S. tax reform (a)		(2)			(9)			—
Currency exchange loss on revaluation of Brazilian deferred tax balances		4			23			4
Global intangible low-taxed income (GILTI)		18			2			12
Permanent differences on business dispositions or impairments		4			20			(3)
U.S. state and local taxes, net		4			(2)			4
U.S. taxes on Non-U.S. earnings, net of tax deductions and credits		4			5			(6)
U.S. research and development tax credits		(50)			(39)			(10)
Uncertain tax positions, including interest		(19)			(14)			(19)
Change in valuation allowances		(3)			17			24
Equity compensation related impacts		(10)			(47)			(43)
U.S. CARES Act		(10)			(16)			—
Other, net		(7)			(5)			(9)
Provision (benefit) for taxes	$	156		$	99		$	71
Effective tax rate expressed as a percentage of pretax earnings		15.5	%		14.4	%		11.7	%

(a) Includes enacted regulatory changes during the year in connection with the U.S. Tax Cuts and Jobs Act (TCJA) signed into law in 2017.

Schedule of significant components of deferred tax assets and liabilities

	December 31,
($ in millions)	2021		2020
Deferred tax assets:
Deferred compensation	$	127	$	109
Accrued employee benefits		79		84
Accrued pensions		113		201
Net operating losses, non-U.S. tax credits and other tax attributes		523		440
Deferred interest		102		83
Operating lease liabilities		85		56
Other		180		156
Total deferred tax assets		1,209		1,129
Valuation allowance		(303)		(264)
Net deferred tax assets		906		865
Deferred tax liabilities:
Property, plant and equipment		(509)		(399)
Goodwill and other intangible assets		(543)		(570)
Pension assets		(146)		(106)
Tax on undistributed non-U.S. earnings		(63)		(64)
Operating lease right of use assets		(87)		(54)
Other		(97)		(79)
Total deferred tax liabilities		(1,445)		(1,272)
Net deferred tax asset (liability)	$	(539)	$	(407)

Schedule of net deferred tax asset (liability) included in consolidated balance sheets

	December 31,
($ in millions)	2021		2020
Other assets	$	126	$	227
Deferred taxes		(665)		(634)
Net deferred tax asset (liability)	$	(539)	$	(407)

Roll forward of unrecognized tax benefits related to uncertain income tax positions

($ in millions)	2021		2020		2019
Balance at January 1	$	55	$	63	$	80
Additions based on tax positions related to the current year		—		1		—
Reductions due to lapse of statute of limitations		(17)		(12)		(16)
Effect of currency exchange rates		(2)		3		(1)
Balance at December 31	$	36	$	55	$	63