Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of income before tax

(Dollars in millions)	Year Ended December 31
Loss before income taxes	2019		2018		2017
U.S.	$	(230)	$	(54)	$	(200)
Non-U.S.	(291)		(199)		(114)
Total	$	(521)	$	(253)	$	(314)

Schedule of components of income tax expense (benefit)

(Dollars in millions)	Year Ended December 31
Provision for income taxes	2019		2018		2017
Current
Non-U.S.	$	7	$	22	$	40
Deferred
U.S. federal	(9)		(4)		(1)
State	2		—		—
Non-U.S.	1		24		(9)
Total income tax expense	$	1	$	42	$	30

Schedule of effective income tax rate reconciliation

(Dollars in millions)	Year Ended December 31
Effective income tax rate	2019		2018		2017
U.S. federal income tax rate	$	(109)	$	(53)	$	(110)
Foreign tax rate variances	(8)		1		9
State taxes, net of federal benefit	(6)		—		(2)
Tax credits	(7)		(9)		(10)
Change in Valuation Allowances	120		79		62
Non-Controlling Interest	2		3		21
Earnings of equity investments	15		13		7
Withholding taxes	4		5		4
Goodwill impairment	—		—		13
Change in U.S. tax rate	—		—		35
Convertible debt	(10)		—		—
Other, net	—		3		2
Provision for income taxes	$	1	$	42	$	30

Schedule of deferred tax assets and liabilities

(Dollars in millions)	As of December 31
Deferred taxes	2019		2018
Assets
Provisions	$	42	$	39
Costs capitalized for tax	1		1
Acquired intangibles	12		20
Tax receivables, principally net operating loss carryforward	130		74
Credits	8		2
Right of Use Assets	29		—
Other	4		3
Deferred tax assets before allowances	$	226	$	139
Valuation allowances	(179)		(125)
Total	$	47	$	14
Liabilities
Property, plant and equipment	(9)		(9)
Distribution taxes	(4)		(7)
Convertible Senior Notes	(10)		—
Lease Liabilities	(30)		—
Total	$	(53)	$	(16)
Net deferred tax asset (liability)	$	(6)	$	(2)

Summary of valuation allowance

The following table summarizes the activity related to the Company’s valuation allowances:

(Dollars in millions)	As of December 31
Valuation Allowances Against Deferred Tax Assets	2019		2018
Allowances at beginning of year	$	125	$	150
Benefits reserved current year	102		83
Settlement of tax matters with Former Parent1	—		(101)
Change in Tax rate /impact of U.S. tax reform	—		(4)
Translation difference	(1)		(3)
Held for sale	(47)		—
Allowances at end of year	$	179	$	125

¹Impact is reflected in equity in conjunction with the Spin-Off

Schedule of unrecognized tax benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

(Dollars in millions)	As of December 31
Unrecognized Tax Benefits	2019		2018
Unrecognized tax benefits at beginning of year	$	2	$	2
Increases as a result of tax positions taken during the current period	2		2
Settlement with net former parent	—		(2)
Total unrecognized tax benefits at end of year	$	4	$	2