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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Income Taxes The components of income (loss) before income taxes for the years ended December 31, (in millions):
202020192018
Domestic$(928)$(1,249)$(8,099)
Foreign(78)397 107 
Total$(1,006)$(852)$(7,992)
Schedule of Provision for Income Taxes The provision for income taxes consists of the following for the years ended December 31, (in millions):
202020192018
Current:
Federal$(50)$8 $121 
State1 11 31 
Foreign74 42 204 
Total current25 61 356 
Deferred:
Federal(136)(355)(1,036)
State(33)(63)(283)
Foreign(92)(650)(267)
Total deferred(261)(1,068)(1,586)
Total income tax benefit(236)(1,007)(1,230)
Total income tax provision - discontinued operations— 31 129 
Total income tax benefit - continuing operations$(236)$(1,038)$(1,359)
Reconciliation of U.S. Statutory Rate to Effective Income Tax Rate on Continuing Basis
A reconciliation of the U.S. statutory rate to the effective income tax rate on a continuing basis is as follows for the years ended December 31:
202020192018
Statutory rate21.0 %21.0 %21.0 %
Add (deduct) effect of:
State income taxes, net of federal income tax effect2.4 3.8 2.4 
U.S. foreign inclusions and foreign tax credit (1)3.6 (1.6)2.1 
Foreign rate differential2.7 4.9 0.4 
Change in uncertain tax positions4.5 5.9 0.2 
Change in valuation allowance reserve3.0 (5.9)0.8 
Impairments(4.4)(3.3)(9.7)
Capital loss3.0 25.4 — 
Reversal of outside basis difference(5.2)0.4 — 
Non-deductible compensation(1.2)(1.6)(0.1)
Return to provision1.7 2.2 (0.1)
Other taxes(0.9)1.6 0.1 
Outbound transfer of U.S. assets (2)(6.9)68.3 — 
Other0.2 0.8 (0.1)
Effective rate23.5 %121.9 %17.0 %
(1)The Company accounts for tax on GILTI as a period cost and the effects are included herein.

(2)In connection with the Company's execution to rationalize its legal entities along with centralizing the ownership of certain intellectual property rights for its comprehensive management and protection, the Company transferred these intellectual property rights to a wholly-owned subsidiary, which resulted in the creation of deferred tax assets and a corresponding income tax benefit of $522 million for the year ended December 31, 2019.
Schedule of Components of Net Deferred Tax Assets
Deferred tax assets (liabilities) consist of the following at December 31, (in millions):
20202019
Deferred tax assets:
Accruals$138 $124 
Inventory39 29 
Pension and postretirement benefits60 79 
Net operating losses350 342 
Foreign tax credits185 156 
Capital loss carryforward241 212 
Operating lease liabilities162 172 
Other158 157 
Total gross deferred tax assets1,333 1,271 
Less valuation allowance(213)(271)
Net deferred tax assets after valuation allowance1,120 1,000 
Deferred tax liabilities:
Accelerated depreciation(92)(80)
Amortizable intangibles(282)(518)
Outside basis differences(93)(40)
Operating lease assets(145)(158)
Other(84)(53)
Total gross deferred tax liabilities(696)(849)
Net deferred tax assets$424 $151 

The net deferred tax amounts have been classified in the balance sheet at December 31, (in millions):
20202019
Noncurrent deferred tax assets$838 $776 
Noncurrent deferred tax liabilities(414)(625)
Total$424 $151 
Summary of Changes in Gross Unrecognized Tax Benefits
The following table summarizes the changes in gross unrecognized tax benefits periods indicated are as follows (in millions):
202020192018
Unrecognized tax benefits, January 1,$474 $463 $385 
Increases (decreases):
Increases in tax positions for prior years4 35 36 
Decreases in tax positions for prior years— (31)(21)
Increase in tax positions for the current period40 84 115 
Purchase accounting adjustments (See Footnote 1 and Footnote7)— (9)— 
Settlements with taxing authorities— (2)(6)
Lapse of statute of limitations(66)(66)(46)
Unrecognized tax benefits, December 31,$452 $474 $463