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�

�

Year ended DecemberÌý31,Ìý

�

�

2019

�

2018

�

2017

Income from continuing operations before income taxes

ÌýÌýÌýÌý

$

391

ÌýÌýÌýÌý

$

734

ÌýÌýÌýÌý

$

531

Expected tax expense at U.S. statutory rate of 21%, 21% and 35%, respectively

�

$

82

�

$

154

�

$

186

Change resulting from:

�

�

�

�

�

�

�

�

�

State tax expense net of federal benefit

�

Ìý

(3)

�

Ìý

(1)

�

Ìý

(2)

Non-U.S. tax rate differentials

�

Ìý

9

�

Ìý

27

�

Ìý

(67)

U.S. Tax Reform Act impact

�

�

(1)

�

�

32

�

�

(52)

Currency exchange gains/losses(net)

�

Ìý

(5)

�

Ìý

(10)

�

Ìý

15

Venator investment basis difference and fair market value adjustments

�

Ìý

(199)

�

Ìý

18

�

Ìý

�

Tax losses related to Venator investment

�

�

(18)

�

Ìý

�

�

Ìý

�

Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits

�

Ìý

7

�

Ìý

16

�

Ìý

�

Tax authority audits and dispute resolutions

�

Ìý

(6)

�

Ìý

5

�

Ìý

9

Share-based compensation excess tax benefits

�

Ìý

(4)

�

Ìý

(14)

�

Ìý

(10)

Change in valuation allowance

�

Ìý

56

�

Ìý

(185)

�

Ìý

(72)

Deferred tax effects of non-U.S. tax rate changes

�

Ìý

36

�

Ìý

(2)

�

Ìý

4

Impact of equity method investments

�

Ìý

(13)

�

Ìý

(14)

�

Ìý

(3)

Other non-U.S. tax effects, including nondeductible expenses transfer pricing adjustments and various withholding taxes

�

Ìý

19

�

Ìý

19

�

Ìý

3

Other U.S. tax effects, including nondeductible expenses and other credits

�

Ìý

2

�

Ìý

�

�

Ìý

9

Total income tax (benefit) expense

�

$

(38)

�

$

45

�

$

20

�

�

DecemberÌý31,Ìý

�

�

2019

�

2018

Deferred income tax assets:

ÌýÌýÌýÌý

�

�

ÌýÌýÌýÌý

�

�

Net operating loss carryforwards

�

$

281

�

$

359

Pension and other employee compensation

�

Ìý

172

�

Ìý

180

Property, plant and equipment

�

Ìý

15

�

Ìý

15

Intangible assets

�

Ìý

56

�

Ìý

76

Basis difference in Venator investment

�

�

199

�

�

�

Operating leases

�

�

98

�

�

�

Other, net

�

Ìý

72

�

Ìý

50

Total

�

$

893

�

$

680

Deferred income tax liabilities:

�

�

�

�

�

�

Property, plant and equipment

�

$

(218)

�

$

(199)

Pension and other employee compensation

�

Ìý

(1)

�

Ìý

�

Intangible assets

�

�

(27)

�

�

(33)

Unrealized currency gains

�

�

(43)

�

�

(37)

Operating leases

�

�

(102)

�

�

�

Other, net

�

Ìý

(8)

�

Ìý

(9)

Total

�

$

(399)

�

$

(278)

Net deferred tax asset before valuation allowance

�

$

494

�

$

402

Valuation allowance—net operating losses and other

�

Ìý

(231)

�

Ìý

(215)

Net deferred tax asset

�

$

263

�

$

187

Non-current deferred tax asset

�

Ìý

292

�

Ìý

324

Non-current deferred tax liability

�

Ìý

(29)

�

Ìý

(137)

Net deferred tax asset

�

$

263

�

$

187

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

Unrecognized tax benefits as of JanuaryÌý1

�

$

26

�

$

23

Gross increases and decreases—tax positions taken during a prior period

�

Ìý

4

�

Ìý

1

Gross increases and decreases—tax positions taken during the current period

�

Ìý

1

�

Ìý

3

Decreases related to settlements of amounts due to tax authorities

�

Ìý

�

�

Ìý

�

Reductions resulting from the lapse of statutes of limitation

�

Ìý

(4)

�

Ìý

�

Foreign currency movements

�

Ìý

1

�

Ìý

(1)

Unrecognized tax benefits as of DecemberÌý31

�

$

28

�

$

26

TaxÌýJurisdiction

ÌýÌýÌýÌý

OpenÌýTaxÌýYears

Belgium

Ìý

2017ÌýandÌýlater

China

Ìý

2009ÌýandÌýlater

Germany

Ìý

2014ÌýandÌýlater

Hong Kong

Ìý

2013ÌýandÌýlater

India

Ìý

2004 andÌýlater

Italy

Ìý

2015ÌýandÌýlater

Mexico

Ìý

2014ÌýandÌýlater

Switzerland

Ìý

2013ÌýandÌýlater

The Netherlands

Ìý

2016ÌýandÌýlater

Thailand

�

2012 and later

United Kingdom

Ìý

2017ÌýandÌýlater

United States federal

Ìý

2017ÌýandÌýlater

�

�

Year ended DecemberÌý31,Ìý

�

�

2019

�

2018

�

2017

Income from continuing operations before income taxes

ÌýÌýÌýÌý

$

377

ÌýÌýÌýÌý

$

716

ÌýÌýÌýÌý

$

524

Expected tax expense at U.S. statutory rate of 21%, 21% and 35%, respectively

�

$

79

�

$

150

�

$

183

Change resulting from:

�

�

�

�

�

�

�

�

�

State tax expense net of federal benefit

�

Ìý

(3)

�

Ìý

(1)

�

Ìý

(2)

Non-U.S. tax rate differentials

�

Ìý

9

�

Ìý

27

�

Ìý

(67)

U.S. Tax Reform Act impact

�

�

(1)

�

�

32

�

�

(53)

Currency exchange gains/losses(net)

�

Ìý

(5)

�

Ìý

(10)

�

Ìý

15

Venator investment basis difference and fair market value adjustments

�

Ìý

(199)

�

Ìý

18

�

Ìý

�

Tax losses related to Venator investment

�

�

(18)

�

Ìý

�

�

Ìý

�

Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits

�

Ìý

7

�

Ìý

16

�

Ìý

�

Tax authority audits and dispute resolutions

�

Ìý

(6)

�

Ìý

5

�

Ìý

9

Share-based compensation excess tax benefits

�

Ìý

(4)

�

Ìý

(14)

�

Ìý

(10)

Change in valuation allowance

�

Ìý

56

�

Ìý

(185)

�

Ìý

(72)

Deferred tax effects of non-U.S. tax rate changes

�

Ìý

36

�

Ìý

(2)

�

Ìý

4

Impact of equity method investments

�

Ìý

(13)

�

Ìý

(14)

�

Ìý

(3)

Other non-U.S. tax effects, including nondeductible expenses transfer pricing adjustments and various withholding taxes

�

Ìý

19

�

Ìý

19

�

Ìý

4

Other U.S. tax effects, including nondeductible expenses and other credits

�

Ìý

2

�

Ìý

�

�

Ìý

9

Total income tax (benefit) expense

�

$

(41)

�

$

41

�

$

17

�

�

DecemberÌý31,Ìý

�

�

2019

�

2018

Deferred income tax assets:

ÌýÌýÌýÌý

�

�

ÌýÌýÌýÌý

�

�

Net operating loss carryforwards

�

$

281

�

$

359

Pension and other employee compensation

�

Ìý

172

�

Ìý

180

Property, plant and equipment

�

Ìý

15

�

Ìý

15

Intangible assets

�

Ìý

56

�

Ìý

76

Basis difference in Venator investment

�

�

199

�

�

�

Operating leases

�

�

98

�

�

�

Other, net

�

Ìý

72

�

Ìý

50

Total

�

$

893

�

$

680

Deferred income tax liabilities:

�

�

�

�

�

�

Property, plant and equipment

�

$

(218)

�

$

(199)

Pension and other employee compensation

�

Ìý

(1)

�

Ìý

�

Intangible assets

�

�

(27)

�

�

(33)

Unrealized currency gains

�

�

(43)

�

�

(37)

Operating leases

�

�

(102)

�

�

�

Other, net

�

Ìý

(8)

�

Ìý

(7)

Total

�

$

(399)

�

$

(276)

Net deferred tax asset before valuation allowance

�

$

494

�

$

404

Valuation allowance—net operating losses and other

�

Ìý

(231)

�

Ìý

(215)

Net deferred tax asset

�

$

263

�

$

189

Non-current deferred tax asset

�

Ìý

292

�

Ìý

324

Non-current deferred tax liability

�

Ìý

(29)

�

Ìý

(135)

Net deferred tax asset

�

$

263

�

$

189