Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The components of income before income taxes and the provision for income taxes for the years indicated are presented below:


	2023		2022		2021
Income before income taxes:
U.S.	$	244	$	111	$	39
Foreign	595		557		209
Total income before income taxes	839		668		248
Provision for income taxes:
Current tax expense:
U.S. federal	6		8		2
State and local	5		2		2
Foreign	183		159		180
Total current tax expense	194		169		184
Deferred tax expense (benefit):
U.S. federal	—		5		(57)
State and local	1		(1)		(2)
Foreign	(7)		(7)		(2)
Total deferred tax (benefit)	(6)		(3)		(61)
Total provision for income taxes	$	188	$	166	$	123

Significant temporary differences as of December 31, 2023 and 2022, are summarized as follows:


	2023		2022
Deferred tax assets attributable to:
Employee benefit accruals	$	32	$	30
Pensions and postretirement plans	16		14
Lease liabilities	54		49
Bad debt	5		6
Inventory reserve	16		22
Net operating loss carryforwards	58		59
Tax credit carryforwards	5		5
Derivative contracts	16		—
Uniform capitalization	12		9
Other	35		33
Total deferred tax assets	249		227
Valuation allowances	(46)		(51)
Net deferred tax assets	203		176
Deferred tax liabilities attributable to:
Property, plant and equipment	184		175
Identified intangibles	33		48
Right-of-use lease assets	51		46
Foreign withholding and state taxes on unremitted earnings	1		1
Goodwill	35		31
Brazilian indirect tax credits	—		4
Derivative contracts	—		3
Total deferred tax liabilities	304		308
Net deferred tax liabilities	$	101	$	132

A reconciliation of the U.S. federal statutory tax rate to our effective tax rate follows:


	2023		2022		2021
Provision for tax at U.S. statutory rate	21.0	%	21.0	%	21.0	%
Tax rate difference on foreign income	6.1		7.2		13.3
Foreign currency foreign exchange	(1.8)		(0.3)		3.2
Inflation adjustments	(0.5)		(0.6)		(4.0)
Tax benefit of intercompany financing	(0.4)		(0.4)		(1.6)
U.S. international tax implications	1.0		2.2		0.8
Valuation allowance in Argentina	—		—		(0.4)
Favorable judgment on the treatment of credits and interest on indirect taxes	(0.2)		(0.3)		(4.8)
Unremitted earnings	—		—		(12.1)
Impairment charge related to Argentina joint venture	—		—		35.5
Foreign-derived intangible income (FDII)	(1.5)		(1.0)		—
Brazil exclusion of certain tax incentives	(1.2)		(4.0)		—
Other items, net	(0.1)		1.1		(1.3)
Provision at effective tax rate	22.4	%	24.9	%	49.6	%

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for 2023 and 2022 is as follows:


	2023		2022
Balance at January 1	$	30	$	29
Additions for tax positions related to prior years	1		5
Reductions for tax positions related to prior years	(1)		(1)
Additions based on tax positions related to the current year	1		1
Reductions related to a lapse in the statute of limitations	—		(4)
Balance at December 31	$	31	$	30