v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Components of Income (Loss) before Income Taxes

The components of Income (Loss) before Income Taxes follow:

 

 

 

 

 

 

 

 

 

 

(In millions)

 

2023

 

 

2022

 

 

2021

 

U.S.

 

$

(325

)

 

$

41

 

 

$

(102

)

Foreign

 

 

(352

)

 

 

358

 

 

 

615

 

 

$

(677

)

 

$

399

 

 

$

513

 

Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax Expense (Benefit)

A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax Expense (Benefit) follows:

 

 

 

 

 

 

 

 

 

 

(In millions)

 

2023

 

 

2022

 

 

2021

 

U.S. federal income tax expense (benefit) at the statutory rate of 21%

 

$

(142

)

 

$

84

 

 

$

108

 

Net foreign losses (income) with no tax due to valuation allowances

 

 

122

 

 

 

45

 

 

 

3

 

Goodwill impairment

 

 

34

 

 

 

—

 

 

 

—

 

State income taxes, net of U.S. federal benefit

 

 

(12

)

 

 

6

 

 

 

1

 

Adjustment for foreign income taxed at different rates and nontaxable foreign items

 

 

5

 

 

 

33

 

 

 

24

 

U.S. charges (benefits) related to foreign tax credits, R&D and foreign
derived intangible deduction

 

 

4

 

 

 

(7

)

 

 

(4

)

Net establishment (release) of uncertain tax positions

 

 

(3

)

 

 

(4

)

 

 

(6

)

Deferred tax impact of enacted rate and law changes

 

 

—

 

 

 

(6

)

 

 

(61

)

Net establishment (release) of foreign valuation allowances and write off of deferred taxes

 

 

—

 

 

 

24

 

 

 

(1

)

Net establishment (release) of U.S. valuation allowances

 

 

—

 

 

 

—

 

 

 

(340

)

Other

 

 

2

 

 

 

15

 

 

 

9

 

United States and Foreign Tax Expense (Benefit)

 

$

10

 

 

$

190

 

 

$

(267

)

Components of United States and Foreign Tax Expense (Benefit)

The components of United States and Foreign Tax Expense (Benefit) by taxing jurisdiction, follow:

 

 

 

 

 

 

 

 

 

(In millions)

 

2023

 

 

2022

 

 

2021

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

37

 

 

$

—

 

 

$

1

 

Foreign

 

 

177

 

 

 

150

 

 

 

166

 

State

 

 

26

 

 

 

12

 

 

 

37

 

 

 

240

 

 

 

162

 

 

 

204

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(123

)

 

 

(28

)

 

 

(362

)

Foreign

 

 

(62

)

 

 

46

 

 

 

(23

)

State

 

 

(45

)

 

 

10

 

 

 

(86

)

 

 

(230

)

 

 

28

 

 

 

(471

)

United States and Foreign Tax Expense (Benefit)

 

$

10

 

 

$

190

 

 

$

(267

)

Deferred Tax Assets and Liabilities

Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow:

 

 

 

 

 

 

 

(In millions)

 

2023

 

 

2022

 

Tax loss carryforwards and credits

 

$

1,155

 

 

$

1,160

 

Capitalized research and development expenditures

 

 

490

 

 

 

481

 

Prepaid royalty income

 

 

427

 

 

 

457

 

Accrued expenses deductible as paid

 

 

343

 

 

 

320

 

Partnership basis differences

 

 

317

 

 

 

341

 

Other prepayments income

 

 

153

 

 

 

—

 

Postretirement benefits and pensions

 

 

87

 

 

 

63

 

Lease liabilities

 

 

82

 

 

 

70

 

Rationalizations and other provisions

 

 

58

 

 

 

52

 

Vacation and sick pay

 

 

25

 

 

 

26

 

Other

 

 

137

 

 

 

100

 

 

 

3,274

 

 

 

3,070

 

Valuation allowance

 

 

(1,275

)

 

 

(1,072

)

Total deferred tax assets

 

 

1,999

 

 

 

1,998

 

Intangible property basis differences related to Cooper Tire acquisition

 

 

(205

)

 

 

(214

)

Property basis differences

 

 

(166

)

 

 

(407

)

Right-of-use assets

 

 

(81

)

 

 

(68

)

Total net deferred tax assets

 

$

1,547

 

 

$

1,309

 

Reconciliation of Unrecognized Tax Benefits A summary of our unrecognized tax benefits and changes during the year follows:

 

 

 

 

 

 

 

 

 

 

(In millions)

 

2023

 

 

2022

 

 

2021

 

Balance at January 1

 

$

87

 

 

$

90

 

 

$

85

 

Increases related to prior year tax positions

 

 

5

 

 

 

10

 

 

 

28

 

Decreases related to prior year tax positions

 

 

—

 

 

 

—

 

 

 

(12

)

Settlements

 

 

(1

)

 

 

(12

)

 

 

(5

)

Foreign currency impact

 

 

4

 

 

 

(1

)

 

 

(7

)

Increases related to current year tax positions

 

 

—

 

 

 

2

 

 

 

3

 

Lapse of statute of limitations

 

 

(3

)

 

 

(2

)

 

 

(2

)

Balance at December 31

 

$

92

 

 

$

87

 

 

$

90