Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2020		2019 ADJUSTED		2018 ADJUSTED
United States	$	138	$	180	$	(82)
Foreign		148		110		93
Total earnings excluding noncontrolling interests		286		290		11
Net loss attributable to noncontrolling interests		—		—		—
Total earnings before income taxes	$	286	$	290	$	11

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2020		2019 ADJUSTED		2018 ADJUSTED
Current:
Federal	$	(50)	$	12	$	(20)
Foreign		35		39		32
State and local		2		(1)		—
Deferred:
Federal		26		(39)		10
Foreign		(3)		(1)		(5)
State and local		(7)		(7)		(9)
Income tax expense		3		3		8
Unrealized changes in other comprehensive income (loss)		(3)		(4)		2
Total income taxes	$	—	$	(1)	$	10

Schedule of reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense

	Years ended December 31,
(Millions of dollars)	2020		2019 ADJUSTED		2018 ADJUSTED
Computed “expected” tax expense (benefit) excluding noncontrolling interests	$	60	$	61	$	2
Adjustments to tax expense (benefit) attributable to:
Foreign tax differences		(4)		14		12
Tax-exempt income		(17)		(29)		(13)
State income taxes, net of federal benefit		(3)		(4)		(6)
Repatriation tax		—		—		14
Foreign entity tax status change		—		—		22
Federal tax credits		(34)		(47)		(23)
Federal rate reduction effect on capital loss carryback		—		—		(3)
Other		1		8		3
Total income tax expense	$	3	$	3	$	8

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2020		2019 ADJUSTED
Deferred income tax liabilities:
Depreciation	$	100	$	119
Domestic partnerships		59		65
Unrealized gain on investments		52		36
Inventory		10		15
Other		3		4
	$	224	$	239
Deferred income tax assets:
Reserves/accruals	$	74	$	73
Net operating and capital loss carry-forwards		52		63
Tax credit carry-forwards		49		75
Other		5		4
		180		215
Valuation allowance		55		68
Net deferred income tax liability	$	99	$	92

Schedule of activity within the valuation allowance account

	Balance at		Charge (credit)	Balance at
(Millions of dollars)	beginning of year		to expense	end of year
Allowance for Deferred Tax Assets:
Year Ended December 31, 2020	$	68	(13)	$	55
Year Ended December 31, 2019	$	59	9	$	68
Year Ended December 31, 2018	$	59	—	$	59

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

(Millions of dollars)	2020		2019
Beginning balance at January 1	$	31	$	25
Additions for uncertain tax positions of prior years		2		4
Decreases for uncertain tax positions of prior years		(7)		(3)
Additions for uncertain tax positions of current year		5		6
Lapse of statute of limitations		(1)		(1)
Ending balance as of December 31	$	30	$	31