Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2021		2020		2019
United States	$	337	$	138	$	180
Foreign		298		148		110
Total earnings before income taxes excluding noncontrolling interests		635		286		290
Net income attributable to noncontrolling interests		1		—		—
Total earnings before income taxes	$	636	$	286	$	290

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2021		2020		2019
Current:
Federal	$	35	$	(50)	$	12
Foreign		33		35		39
State and local		10		2		(1)
Deferred:
Federal		3		26		(39)
Foreign		(7)		(3)		(1)
State and local		(9)		(7)		(7)
Income tax expense		65		3		3
Unrealized changes in other comprehensive income (loss)		8		(3)		(4)
Total income taxes	$	73	$	—	$	(1)

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

	Years ended December 31,
(Millions of dollars)	2021		2020		2019
Computed “expected” tax expense excluding noncontrolling interests	$	133	$	60	$	61
Adjustments to tax expense attributable to:
Foreign tax differences		(30)		(4)		14
Tax-exempt income		(15)		(17)		(29)
Federal tax credits		(39)		(34)		(47)
Unrecognized tax benefits		14		—		—
Other		2		(2)		4
Total income tax expense	$	65	$	3	$	3

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2021		2020
Deferred income tax liabilities:
Depreciation	$	121	$	100
Domestic partnerships		62		59
Unrealized gain on investments		13		52
Inventory		7		10
Other		4		3
Gross deferred income tax liabilities	$	207	$	224
Deferred income tax assets:
Reserves/accruals	$	66	$	74
Net operating and capital loss carry-forwards		67		52
Tax credit carry-forwards		32		49
Other		5		5
Gross deferred income tax assets before valuation allowance		170		180
Less: Valuation allowance		60		55
Net deferred income tax liability	$	97	$	99

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, 2021	$	55	5	$	60
Year Ended December 31, 2020	$	68	(13)	$	55
Year Ended December 31, 2019	$	59	9	$	68

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

(Millions of dollars)	2021		2020
Beginning balance at January 1	$	30	$	31
Additions for uncertain tax positions of prior years		7		2
Decreases for uncertain tax positions of prior years		(1)		(7)
Additions for uncertain tax positions of current year		6		5
Lapse of statute of limitations		(1)		(1)
Ending balance as of December 31	$	41	$	30