Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of income before income taxes are as follows:

	Year Ended December 31,
	2021		2020		2019
Domestic	$	2,298	$	233	$	460
Foreign	379		98		110
	$	2,677	$	331	$	570

The Company's provision for (benefit from) income taxes consists of the following:

	Year Ended December 31,
	2021		2020		2019
Current
Federal	$	434	$	(208)	$	20
State	57		6		9
Foreign	93		14		25
Total current	584		(188)		54
Deferred
Federal	19		154		69
State	13		(13)		11
Foreign	(9)		5		(26)
Total deferred	23		146		54
Total provision for (benefit from) income taxes	$	607	$	(42)	$	108

A reconciliation of taxes computed at the statutory rate to the Company's income tax expense is as follows:

	Year Ended December 31,
	2021		2020		2019
Provision for federal income tax, at statutory rate	$	563	$	70	$	120
State income tax provision, net of federal income tax effect	56		2		10
Foreign income tax rate differential	22		2		(6)
CARES Act net operating loss carryback tax benefit	—		(95)		—
Noncontrolling interests	(11)		(9)		(8)
Change in valuation allowance	(29)		3		(17)
Other, net	6		(15)		9
Total income tax expense (benefit)	$	607	$	(42)	$	108

The tax effects of the principal temporary differences between financial reporting and income tax reporting at December 31 are as follows:

	2021		2020
Net operating loss carryforward	$	96	$	105
Credit carryforward	23		25
Operating lease liabilities	136		113
Accruals	68		63
Pension	64		90
Inventories	22		13
Other	26		43
Deferred taxes assets—total	435		452
Property, plant and equipment	(1,134)		(1,080)
Intangibles	(288)		(137)
Operating lease right-of-use asset	(134)		(112)
Turnaround costs	(27)		(17)
Consolidated partnerships	(256)		(181)
Equity method investments	(223)		(227)
Other	(17)		(18)
Deferred tax liabilities—total	(2,079)		(1,772)
Valuation allowance	(4)		(33)
Total net deferred tax liabilities	$	(1,648)	$	(1,353)
Balance sheet classifications
Noncurrent deferred tax asset	$	33	$	15
Noncurrent deferred tax liability	(1,681)		(1,368)
Total net deferred tax liabilities	$	(1,648)	$	(1,353)

At December 31, 2021, the Company had federal, foreign and state net operating loss carryforwards ("NOLs") of approximately $22, $188 and $722, respectively. The federal NOL was acquired in connection with the acquisition of Dimex. The federal NOL and certain foreign and state NOLs do not expire, while certain other foreign and state NOLs expire in varying amounts between 2022 and 2041. The federal NOL and certain state NOLs are subject to limitations on an annual basis. At December 31, 2021, the Company had various federal, foreign and state credits carryforwards of $2, $2 and $19, respectively, which either do not expire or expire in varying amounts between 2022 and 2036. Management believes the Company will realize the benefit of a portion of the net operating loss carryforwards before they expire, but to the extent that the full benefit may not be realized, a valuation allowance has been recorded. The valuation allowance decreased by $29 in 2021, primarily due to the release in valuation allowance resulting from a change in management judgment regarding the realizability of certain foreign deferred tax assets, including net operating loss carryforward, as a result of the change in expectations of income in future years.

The Company has recognized a liability for uncertain income tax positions of $18 as of December 31, 2021. The Company does not believe it is likely that any material amounts will be paid in 2022. The ultimate resolution and timing of payment for remaining matters continues to be uncertain.

The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is no longer subject to examinations by tax authorities before the year 2014.