INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes

Components of earnings before income taxes and the provision for U.S. and other income taxes from operations follow:

	For years ended December 31,
(Dollars in millions)	2020		2019		2018
Earnings before income taxes
United States	$	164	$	454	$	718
Outside the United States	366		448		592
Total	$	530	$	902	$	1,310
Provision for income taxes
United States Federal
Current	$	70	$	55	$	161
Deferred	(96)		19		(11)
Outside the United States
Current	77		62		86
Deferred	(14)		(32)		(22)
State and other
Current	5		—		30
Deferred	(1)		36		(18)
Total	$	41	$	140	$	226

Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss

The following represents the deferred tax (benefit) charge recorded as a component of "Accumulated other comprehensive income (loss)" ("AOCI") in the Consolidated Statements of Financial Position:

	For years ended December 31,
(Dollars in millions)	2020		2019		2018
Defined benefit pension and other postretirement benefit plans	$	(7)	$	(10)	$	(10)
Derivatives and hedging	(4)		(2)		3
Total	$	(11)	$	(12)	$	(7)

Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement

Total income tax expense (benefit) included in the consolidated financial statements was composed of the following:

	For years ended December 31,
(Dollars in millions)	2020		2019		2018
Earnings before income taxes	$	41	$	140	$	226
Other comprehensive income	(11)		(12)		(7)
Total	$	30	$	128	$	219

Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate

Differences between the provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow:

	For years ended December 31,
(Dollars in millions)	2020			2019			2018
Amount computed using the statutory rate	$	109		$	189		$	274
State income taxes, net	2			36			6
Foreign rate variance	(49)			(68)			(52)
Change in reserves for tax contingencies	4			36			21
General business credits	(39)			(52)			(60)
U.S. tax on foreign earnings	13			(17)			10
Foreign tax credits	—			—			(12)
Tax law changes and tax loss from outside-U.S. entity reorganizations	—			7			20
Other	1			9			19
Provision for income taxes	$	41		$	140		$	226
Effective income tax rate	8		%	16		%	17		%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities follow:

	December 31,
(Dollars in millions)	2020		2019
Deferred tax assets
Post-employment obligations	$	280	$	247
Net operating loss carryforwards	619		606
Tax credit carryforwards	216		239
Environmental contingencies	68		68
Unrealized derivative loss	22		18
Other	213		173
Total deferred tax assets	1,418		1,351
Less: Valuation allowance	393		453
Deferred tax assets less valuation allowance	$	1,025	$	898
Deferred tax liabilities
Property, plant, and equipment	$	(893)	$	(895)
Intangible assets	(388)		(439)
Investments	(305)		(235)
Other	(175)		(178)
Total deferred tax liabilities	$	(1,761)	$	(1,747)
Net deferred tax liabilities	$	(736)	$	(849)
As recorded in the Consolidated Statements of Financial Position:
Other noncurrent assets	$	112	$	66
Deferred income tax liabilities	(848)		(915)
Net deferred tax liabilities	$	(736)	$	(849)

Schedule of Tax Receivables and Payables

Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position:

	December 31,
(Dollars in millions)	2020		2019
Miscellaneous receivables	$	311	$	211
Payables and other current liabilities	$	147	$	36
Other long-term liabilities	83		139
Total income taxes payable	$	230	$	175

Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

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

(Dollars in millions)	2020		2019		2018
Balance at January 1	$	202	$	182	$	142
Adjustments based on tax positions related to current year	14		25		9
Adjustments based on tax positions related to prior years	63		(3)		35
Lapse of statute of limitations	(22)		(2)		(4)
Balance at December 31 (1)	$	257	$	202	$	182

(1)All of the unrecognized tax benefits would, if recognized, impact the Company's effective tax rate.

A reconciliation of the beginning and ending amounts of accrued interest related to unrecognized tax positions is as follows:

(Dollars in millions)	2020		2019		2018
Balance at January 1	$	13	$	10	$	6
Expense for interest, net of tax	5		5		4
Income for interest, net of tax	(5)		(2)		—
Balance at December 31	$	13	$	13	$	10

Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2020, 2019, and 2018.