INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of loss before recovery of income taxes

The components of Loss before benefit from income taxes for 2019, 2018 and 2017 consist of:

(in millions)	2019			2018			2017
Domestic	$	(2,396	)	$	(1,475	)	$	(2,032	)
Foreign	559			(2,679		)	291
	$	(1,837	)	$	(4,154	)	$	(1,741	)

Components of benefits from income taxes

The components of Benefit from income taxes for 2019, 2018 and 2017 consist of:

(in millions)	2019			2018			2017
Current:
Domestic	$	(12	)	$	—		$	(20	)
Foreign	(116		)	(327		)	(146		)
	(128		)	(327		)	(166		)
Deferred:
Domestic	(5		)	17			(2		)
Foreign	187			320			4,313
	182			337			4,311
	$	54		$	10		$	4,145

Reconciliation of reported recovery of income taxes from the expected amount calculated by applying the Canadian statutory rate to income before recovery of income taxes

The Benefit from income taxes differs from the expected amount calculated by applying the Company’s Canadian statutory rate of 26.9% to Loss before benefit from income taxes for 2019, 2018 and 2017 as follows:

(in millions)	2019			2018			2017
Loss before benefit from income taxes	$	(1,837	)	$	(4,154	)	$	(1,741	)
Benefit from income taxes
Expected benefit from income taxes at Canadian statutory rate	$	494		$	1,117		$	468
Non-deductible amount of share-based compensation	(7		)	(10		)	(37		)
Adjustments to tax attributes	(99		)	(4		)	(242		)
Impact of changes in enacted income tax rates	—			—			747
Change in valuation allowance related to foreign tax credits and NOLs	21			(3		)	139
Change in valuation allowance on Canadian deferred tax assets and tax rate changes	(142		)	(875		)	(360		)
Change in uncertain tax positions	(350		)	(47		)	(65		)
Foreign tax rate differences	186			(3		)	933
Non-deductible portion of Goodwill impairments	—			(488		)	(139		)
Tax differences on divestitures of businesses	—			—			203
Tax benefit on intra-entity transfers	—			356			2,480
Other	(49		)	(33		)	18
	$	54		$	10		$	4,145

Schedule of tax effect of major items recorded as deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2019 and 2018 consist of:

(in millions)	2019			2018
Deferred tax assets:
Tax loss carryforwards	$	2,911		$	2,886
Provisions	641			519
Research and development tax credits	155			143
Scientific Research and Experimental Development pool	52			52
Tax credit carryforwards	25			46
Deferred revenue	5			4
Unrealized FX on U.S. dollar debt and other financing cost	94			262
Prepaid expenses	41			44
Share-based compensation	19			24
Other	23			—
Total deferred tax assets	3,966			3,980
Less valuation allowance	(2,831		)	(2,913		)
Net deferred tax assets	1,135			1,067
Deferred tax liabilities:
Intangible assets	53			163
Plant, equipment and technology	56			55
Outside basis differences	41			29
Other	—			29
Total deferred tax liabilities	150			276
Net deferred tax asset (liability)	$	985		$	791

Summary of open tax years by jurisdiction

Jurisdiction:	Open Years
United States - Federal	2014 - 2018
Canada	2005 - 2018
Germany	2013 - 2018
France	2013 - 2018
China	2015 - 2018
Ireland	2015 - 2018
Netherlands	2018
Australia	2011 - 2018

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

The following table presents a reconciliation of the unrecognized tax benefits for 2019, 2018 and 2017:

(in millions)	2019			2018			2017
Balance, beginning of year	$	654		$	598		$	423
Additions based on tax positions related to the current year	361			18			145
Additions for tax positions of prior years	63			55			57
Reductions for tax positions of prior years	(58		)	(11		)	(18		)
Lapse of statute of limitations	(18		)	(6		)	(9		)
Balance, end of year	$	1,002		$	654		$	598