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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Composition of Income (Loss) Before Income Tax Expense (Benefit)
Following is the composition of income (loss) before income tax expense (benefit):
202120202019
Federal$(341)$(495)$55 
Foreign(226)(177)23 
Income (loss) before income taxes$(567)$(672)$78 
Composition of Income Tax Expense (Benefit)
Following is the composition of income tax expense (benefit):
202120202019
Current:
Federal$— $(36)$(5)
Foreign58 56 13 
State1 (7)2 
Total current tax expense59 13 10 
Deferred:
Federal(9)(8)15 
Foreign(144)(125)(8)
State(1)8 (7)
Total deferred tax expense (benefit)(154)(125)— 
Income tax expense (benefit)$(95)$(112)$10 
Significant Components of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities as of December 31 are as follows:
20212020
Deferred tax assets:
Compensation and benefits$58 $69 
Accruals and reserves57 89 
Tax credit carryovers53 34 
Tax loss carryovers291 168 
Inventories18 18 
Restructuring and other reserves31 33 
Operating lease liabilities42 48 
Other71 25 
Total gross deferred tax assets621 484 
Valuation allowances(162)(94)
Total deferred tax assets459 390 
Deferred tax liabilities:
Right-of-use assets(42)(48)
Intangibles(976)(1,044)
Property and equipment(80)(115)
Other— — 
Total deferred tax liabilities(1,098)(1,207)
Deferred tax liabilities - net$(639)$(817)
Movements in the Valuation Allowance
The movements in the valuation allowance are as follows:
20212020
January 1$(94)$(32)
Increase(74)(75)
Release6 13 
December 31$(162)$(94)
Cash Payments of Interest Expense and Income Taxes
Cash payments for interest during the years ended December 31 were as follows:
202120202019
Interest paid$221 $131 $104 
Cash payments of income taxes were as follows:
202120202019
Cash payments of income taxes$151 $97 $43 
Reconciliation of Income Tax Expense (Benefit)
The following is a reconciliation of the income tax expense (benefit) applying the U.S. federal statutory rate to income before income taxes to reported income tax expense:
202120202019
Income tax expense (benefit) at the U.S. federal statutory tax rate$(119)$(141)$16 
Add (deduct):
Taxation of international operations(16)(15)21 
State taxes(8)(10)3 
Income tax credits(14)(24)(10)
Non-deductible employee compensation4 1 4 
Other permanent adjustments(2)18 (4)
Change in uncertain tax positions(2)(7)(15)
Change in valuation allowance62 66 (5)
Income tax expense (benefit)$(95)$(112)$10 
Reconciliation of Gross Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
202120202019
Beginning balance at January 1$3 $8 $15 
Adjustments related to the separation from Lilly— — (2)
Adjusted beginning balance at January 13 8 13 
Additions based on tax positions related to the current year— — 1 
Changes for tax positions of prior years(1)(2)(1)
Additions related to acquisition4 — — 
Settlements— (3)(5)
Ending balance at December 31$6 $3 $8 
Income Tax Expense (Benefit) Related to Interest and Penalties We recognized income tax expense (benefit) related to interest and penalties as follows:
202120202019
Income tax benefit$(1)$(2)$(11)