Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income before income taxes

U.S. and foreign income before taxes are set forth below:

	2020		2019		2018
U.S.	$	684	$	466	$	726
Foreign	336		907		1,113
	$	1,020	$	1,373	$	1,839

Details of income tax provision (benefit)

The details of our income tax provision (benefit) are set forth below:

		2020		2019		2018
Current:	Federal	$	37	$	129	$	102
	Foreign	121		166		181
	State	23		16		25
		$	181	$	311	$	308
Deferred:	Federal	$	(21)	$	(16)	$	(24)
	Foreign	(29)		(213)		5
	State	(15)		(3)		8
		$	(65)	$	(232)	$	(11)
		$	116	$	79	$	297

Effective income tax and tax rate reconciliation

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:

	2020		2019		2018
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax	1.0		0.9		0.8
Statutory rate differential attributable to foreign operations	(0.9)		0.9		(4.6)
Adjustments to reserves and prior years	(1.7)		2.3		2.8
Excess tax benefits from stock-based awards	(3.4)		(3.6)		(2.4)
Change in valuation allowances	(2.5)		(0.6)		0.7
Intercompany restructuring	(0.3)		(16.6)		—
Impact of Tax Law Changes	(2.5)		—		(1.9)
Other, net	0.7		1.4		(0.2)
Effective income tax rate	11.4	%	5.7	%	16.2	%

Details of deferred tax assets (liabilities)

The details of 2020 and 2019 deferred tax assets (liabilities) are set forth below:

	2020		2019
Operating losses and interest deduction carryforwards	$	181	$	176
Capital losses	3		3
Tax credit carryforwards	226		230
Employee benefits	82		85
Share-based compensation	58		55
Lease-related liabilities	199		199
Accrued liabilities and other	47		49
Derivative instruments	50		30
Intangible assets	678		602
Property, plant and equipment	31		21
Deferred income	81		55
Gross deferred tax assets	1,636		1,505
Deferred tax asset valuation allowances	(789)		(787)
Net deferred tax assets	$	847	$	718
Intangible assets, including goodwill	$	(1)	$	(40)
Property, plant and equipment	(75)		(44)
Operating lease right-of-use assets	(161)		(156)
Other	(57)		(31)
Gross deferred tax liabilities	$	(294)	$	(271)
Net deferred tax assets (liabilities)	$	553	$	447

The details of the 2020 valuation allowance activity are set forth below:

	2020		2019
Beginning of Year	$	(787)	$	(454)
Increases	(64)		(384)
Decreases	45		57
Other Adjustments	17		(6)
End of Year	$	(789)	$	(787)

Net deferred tax assets (liabilities) for 2020 and 2019 are reported in our Consolidated Balance Sheets as Deferred income taxes.

Loss carryforwards, by year of expiration

Details of tax loss, credit carryforwards, and expiration dates along with valuation allowances as of December 31, 2020, are as follows:

	Gross Amount		Deferred Tax Asset		Valuation Allowance		Expiration
Federal net operating losses	$	25	$	5	$	—	2035-2036
Federal net operating losses - Indefinite	61		13		—		None
Foreign net operating losses	32		10		(10)		2021-2030
Foreign net operating losses - Indefinite	253		75		(51)		None
State net operating losses	1,268		63		(48)		2021-2039
Foreign capital loss carryforward - Indefinite	14		3		(3)		None
Foreign tax credits	220		220		(220)		2023-2030
State tax credits	8		6		(5)		2023
State interest deduction carryforward - Indefinite	361		15		(15)		None
	$	2,242	$	410	$	(352)

Unrecognized tax benefits reconciliation

A reconciliation of the beginning and ending unrecognized tax benefits follows:

	2020		2019
Beginning of Year	$	188	$	113
Additions on tax positions - current year	5		84
Additions for tax positions - prior years	34		54
Reductions for tax positions - prior years	(22)		(30)
Reductions for settlements	(30)		(31)
Reductions due to statute expiration	—		(2)
Foreign currency translation adjustment	—		—
End of Year	$	175	$	188