Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Earnings before Income Taxes

Earnings before income taxes consisted of the following:

	December 31,
(DOLLARS IN MILLIONS)	2021		2020		2019
U.S. loss before taxes	$	(493)	$	(142)	$	(110)
Foreign income before taxes	847		583		667
Total income before taxes	$	354	$	441	$	557

Schedule of Income Tax Provision

The income tax provision consisted of the following:

	December 31,
(DOLLARS IN MILLIONS)	2021		2020		2019
Current tax provision
Federal	$	(5)	$	(9)	$	10
State and local	13		1		—
Foreign	303		150		146
Total current tax provision	311		142		156
Deferred tax provision
Federal	(121)		(8)		(41)
State and local	(34)		(2)		8
Foreign	(81)		(58)		(26)
Total deferred tax benefit	(236)		(68)		(59)
Total provision for income taxes	$	75	$	74	$	97

Schedule of Reconciliation between U.S. Federal Statutory Income Tax Rate to Actual Effective Tax Rate

Reconciliation between the U.S. federal statutory income tax rate to the actual effective tax rate was as follows:

	December 31,
	2021		2020		2019
Statutory tax rate	21.0	%	21.0	%	21.0	%
Difference in effective tax rate on foreign earnings and remittances(1)	8.0		(6.9)		(6.8)
Tax benefit from supply chain optimization	(5.8)		(5.0)		(1.0)
Unrecognized tax benefit, net of reversals	0.7		5.7		3.4
Tax impact on gains on business disposal	4.0		—		—
Deferred taxes on deemed repatriation	2.7		(0.2)		0.8
Global intangible low-taxed income	4.1		5.3		—
Foreign-derived intangible income	(1.6)		(0.3)		(0.3)
U.S. foreign tax credit - general limitation	(3.1)		(1.9)		(1.2)
Research and development credit	(1.4)		(1.0)		(0.9)
Acquisition costs	2.4		1.0		0.5
Establishment (release) of valuation allowance on state deferred	(3.0)		(0.4)		1.7
State and local taxes	(4.8)		(0.6)		(0.8)
Other, net	(2.0)		0.1		1.0
Effective tax rate	21.2	%	16.8	%	17.4	%

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(1)For 2021, the rate includes rate change impacts related to the Netherlands and United Kingdom.

Schedule of Deferred Tax Assets and Liabilities

The deferred tax assets and liabilities consisted of the following amounts:

	December 31,
(DOLLARS IN MILLIONS)	2021		2020
Employee and retiree benefits	$	148	$	108
Credit and net operating loss carryforwards	312		271
Intangible assets	—		10
Amortizable research and development expenses	42		30
Gain on foreign currency translation	—		46
Interest limitation	43		51
Inventory	32		14
Lease obligations	189		53
Other, net	79		23
Gross deferred tax assets	845		606
Property, plant and equipment, net	(265)		(60)
Intangible assets	(2,486)		(586)
Right-of-use assets	(187)		(53)
Loss on foreign currency translation	(30)		—
Deferred taxes on deemed repatriation	(81)		(46)
Gross deferred tax liabilities	(3,049)		(745)
Valuation allowance	(232)		(257)
Total net deferred tax liabilities	$	(2,436)	$	(396)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

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

	December 31,
(DOLLARS IN MILLIONS)	2021		2020		2019
Balance of unrecognized tax benefits at beginning of year	$	99	$	75	$	51
Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year(1)	42		11		20
Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year	(3)		—		(2)
Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year	5		24		13
The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities	(1)		(2)		(3)
Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation	(12)		(9)		(4)
Balance of unrecognized tax benefits at end of year	$	130	$	99	$	75

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(1)For 2021, the amount includes positions related to N&B opening balance sheet amounts.