0001558370-21-001632 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2020	Feb. 19, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	1-13397
Entity Registrant Name	INGREDION INCORPORATED
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-3514823
Entity Address, Address Line One	5 Westbrook Corporate Center
Entity Address, City or Town	Westchester
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60154
City Area Code	708
Local Phone Number	551-2600
Title of 12(b) Security	Common Stock
Trading Symbol	INGR
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	true
Entity Public Float			$ 5,551,000,000
Entity Common Stock, Shares Outstanding		67,110,523
Entity Central Index Key	0001046257
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Income
Net sales	$ 5,987	$ 6,209	$ 6,289
Cost of sales	4,715	4,897	4,921
Gross profit	1,272	1,312	1,368
Operating expenses	628	610	611
Other income, net	(31)	(19)	(10)
Restructuring/impairment charges	93	57	64
Operating income	582	664	703
Financing costs, net	81	81	86
Other, non-operating (income) expense, net	(5)	1	(4)
Income before income taxes	506	582	621
Provision for income taxes	152	158	167
Net income	354	424	454
Less: Net income attributable to non-controlling interests	6	11	11
Net income attributable to Ingredion	$ 348	$ 413	$ 443
Weighted average common shares outstanding:
Basic (in shares)	67.2	66.9	70.9
Diluted (in shares)	67.6	67.4	71.8
Earnings per common share of Ingredion:
Basic (in dollars per share)	$ 5.18	$ 6.17	$ 6.25
Diluted (in dollars per share)	$ 5.15	$ 6.13	$ 6.17

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 354	$ 424	$ 454
Other comprehensive income:
Gains (losses) on cash flow hedges, net of income tax effect of $2 and $5, respectively	3	(14)
Gains on cash flow hedges, net of income tax effect of $2			6
Losses on cash flow hedges reclassified to earnings, net of income tax effect of $17 and $4, respectively	48	10
Losses on cash flow hedges reclassified to earnings, net of income tax effect of $2			4
Actuarial (losses) gains on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $1, $2, and $5, respectively	(1)	9	(15)
Currency translation adjustment	(25)	(9)	(129)
Comprehensive income	379	420	320
Less: Comprehensive income attributable to non-controlling interests	5	9	3
Comprehensive income attributable to Ingredion	$ 374	$ 411	$ 317

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Comprehensive Income
Gains (losses) on cash flow hedges, income tax (expense) benefit of $2 and $5, respectively	$ (2)	$ 5
Gains on cash flow hedges, income tax (expense) of $2			$ (2)
Losses on cash flow hedges reclassified to earnings, income tax benefit of $17 and $4, respectively	(17)	(4)
Losses on cash flow hedges reclassified to earnings, income tax benefit of $2			(2)
Actuarial (losses) gains on pension and other postretirement obligations, settlements and plan amendments, net of income tax benefit (expense) of $1, $2, and $5, respectively	$ 1	$ (2)	$ 5

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 665	$ 264	$ 327	$ 595
Short-term investments		4
Accounts receivable, net	1,011	977
Inventories	917	861
Prepaid expenses	54	54
Total current assets	2,647	2,160
Property, plant and equipment, net of accumulated depreciation of $3,175 and $3,056, respectively	2,455	2,306
Goodwill	902	801	791
Other intangible assets, net of accumulated amortization of $229 and $197, respectively	444	437
Operating lease assets	173	151
Deferred income tax assets	23	13
Other assets	214	172
Total assets	6,858	6,040
Current liabilities:
Short-term borrowings	438	82
Accounts payable	599	504
Accrued liabilities	421	381
Total current liabilities	1,458	967
Non-current liabilities	227	220
Long-term debt	1,748	1,766
Non-current operating lease liabilities	136	120
Deferred income tax liabilities	217	195
Total liabilities	3,786	3,268
Share-based payments subject to redemption	30	31	$ 37	$ 36
Redeemable non-controlling interests	70
Ingredion stockholders' equity:
Preferred stock - authorized 25,000,000 shares - $0.01 par value, none issued
Common stock - authorized 200,000,000 shares - $0.01 par value, 77,810,875 issued at December 31, 2020 and 2019, respectively	1	1
Additional paid-in capital	1,150	1,137
Less: Treasury stock (common stock: 10,795,346 and 10,993,388 shares at December 31, 2020 and 2019, respectively) at cost	(1,024)	(1,040)
Accumulated other comprehensive loss	(1,133)	(1,158)
Retained earnings	3,957	3,780
Total Ingredion stockholders' equity	2,951	2,720
Non-redeemable non-controlling interests	21	21
Total equity	2,972	2,741
Total liabilities and equity	$ 6,858	$ 6,040

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Consolidated Balance Sheet
Property, plant and equipment, Accumulated depreciation	$ 3,175	$ 3,056
Other intangible assets - accumulated amortization (in dollars)	$ 229	$ 197
Preferred stock, authorized (in shares)	25,000,000	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, issued (in shares)	0	0
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued (in shares)	77,810,875	77,810,875
Treasury stock (in shares)	10,795,346	10,993,388

Consolidated Statements of Equity - USD ($) $ in Millions	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings	Non-Controlling Interests	Total
Balance at Dec. 31, 2017	$ 1	$ 1,138	$ (494)	$ (1,013)	$ 3,259	$ 26
Increase (Decrease) in Stockholders' Equity
Net income (loss)					443	11
Dividends declared					(173)	(9)
Repurchases of common stock, net		(33)	(624)
Share-based compensation, net of issuance		(5)	27
Other comprehensive income (loss)				(134)		(7)
Other		(4)		(7)	7	(1)
Balance at Dec. 31, 2018	1	1,096	(1,091)	(1,154)	3,536	20
Increase (Decrease) in Stockholders' Equity
Net income (loss)					413	11
Dividends declared					(169)	(8)
Repurchases of common stock, net		32	31
Share-based compensation, net of issuance		9	20
Other comprehensive income (loss)				(4)		(2)
Balance at Dec. 31, 2019	1	1,137	(1,040)	(1,158)	3,780	21	$ 2,741
Increase (Decrease) in Stockholders' Equity
Net income (loss)					348	10
Dividends declared					(171)	(8)
Share-based compensation, net of issuance		13	16
Other comprehensive income (loss)				25		(1)
Other						(1)
Balance at Dec. 31, 2020	$ 1	$ 1,150	$ (1,024)	$ (1,133)	$ 3,957	$ 21	$ 2,972

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

Consolidated Statement of Redeemable Equity $ in Millions	USD ($)
Share-based Payments Subject to Redemption, Beginning Balance at Dec. 31, 2017	$ 36
Increase (Decrease) in Temporary Equity
Share-based compensation, net of issuance	1
Share-based Payments Subject to Redemption, Ending Balance at Dec. 31, 2018	37
Increase (Decrease) in Temporary Equity
Share-based compensation, net of issuance	(6)
Share-based Payments Subject to Redemption, Ending Balance at Dec. 31, 2019	31
Increase (Decrease) in Temporary Equity
Share-based compensation, net of issuance	(1)
Share-based Payments Subject to Redemption, Ending Balance at Dec. 31, 2020	30
Increase (Decrease) in Temporary Equity
Net income (loss) attributable to non-controlling interests	(4)
Acquisition of redeemable non-controlling interests	74
Redeemable Non-Controlling Interests, Ending Balance at Dec. 31, 2020	$ 70

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash provided by operating activities
Net income	$ 354	$ 424	$ 454
Non-cash charges to net income:
Depreciation and amortization	213	220	247
Mechanical stores expense	54	57	57
Deferred income taxes	(7)	3	(23)
Charge for fair value markup of acquired inventory	6
Other	99	33	39
Changes in working capital:
Accounts receivable and prepaid expenses	(3)	(61)	(70)
Inventories	(14)	(43)	(50)
Accounts payable and accrued liabilities	124	51	(3)
Margin accounts	43	(1)	5
Other	(40)	(3)	47
Cash provided by operating activities	829	680	703
Cash used for investing activities
Capital expenditures and mechanical stores purchases	(340)	(328)	(350)
Payments for acquisitions, net of cash acquired of $14, $4 , and $ - , respectively	(236)	(42)
Investment in non-consolidated affiliates	(6)	(10)	(15)
Short-term investments	4	3	1
Proceeds from disposal of manufacturing facilities and properties	7	2	1
Other		1	2
Cash used for investing activities	(571)	(374)	(361)
Cash used for financing activities
Proceeds from borrowings	1,550	1,209	987
Payments on debt	(1,224)	(1,465)	(738)
Debt issuance costs	(9)
Repurchases of common stock, net		63	(657)
Issuances of common stock for share-based compensation, net of settlements	4	3	1
Dividends paid, including to non-controlling interests	(178)	(174)	(182)
Cash provided by (used for) financing activities	143	(364)	(589)
Effects of foreign exchange rate changes on cash		(5)	(21)
Increase (decrease) in cash and cash equivalents	401	(63)	(268)
Cash and cash equivalents, beginning of period	264	327
Cash and cash equivalents, end of period	$ 665	$ 264	$ 327

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Cash Flows
Cash acquired from acquisition	$ 14	$ 4

Description of the Business

12 Months Ended

Dec. 31, 2020

Description of the Business

Description of the Business

NOTE 1 – Description of the Business

Ingredion Incorporated (individually and together with its consolidated subsidiaries, “the Company”) was founded in 1906 and became an independent and public company as of December 31, 1997. The Company primarily manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a wide range of industries, both domestically and internationally.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

NOTE 2 – Summary of Significant Accounting Policies

Basis of presentation: The Consolidated Financial Statements consist of the accounts of the Company, including all significant subsidiaries. Intercompany accounts and transactions are eliminated in consolidation.

The preparation of the accompanying Consolidated Financial Statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the value of purchase consideration, valuation of accounts receivable, inventories, goodwill, intangible assets and other long-lived assets, legal contingencies, guarantee obligations, and assumptions used in the calculation of income taxes, and pension and other postretirement benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management will adjust such estimates and assumptions when facts and circumstances dictate. Foreign currency devaluations versus the U.S. dollar, corn price volatility, access to credit markets, and adverse changes in the global economic environment have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods.

Assets and liabilities of foreign subsidiaries, other than those whose functional currency is the U.S. dollar, are translated at current exchange rates with the related translation adjustments reported in equity as a component of accumulated other comprehensive income (loss). Income statement accounts are translated at the average exchange rate during the period. However, significant non-recurring items related to a specific event are recognized at the exchange rate on the date of the significant event. The U.S. dollar is the functional currency for the Company’s subsidiaries in Mexico and as of July 1, 2018, in Argentina. In the second quarter of the year ended December 31, 2018, the Argentine peso rapidly devalued relative to the U.S. dollar, which along with increased inflation, resulted in a three-year cumulative inflation that exceeded 100 percent, as of June 30, 2018. As a result, the Company elected to adopt hyperinflation accounting as of July 1, 2018, for its Argentina affiliate in accordance with GAAP. Under hyperinflation accounting, the Argentina affiliate’s functional currency becomes the U.S. dollar. For foreign subsidiaries where the U.S. dollar is the functional currency, monetary assets and liabilities are translated at current exchange rates with the related adjustment included in net income. Non-monetary assets and liabilities are translated at historical exchange rates.

Cash and cash equivalents: Cash equivalents consist of all instruments purchased with an original maturity of three months or less, and which have virtually no risk of loss in value.

Accounts receivable, net: Accounts receivable, net, consist of trade and other receivables carried at approximate fair value, net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined using the Company’s best estimate of expected credit losses using historical experience and current and future economic conditions.

Inventories: Inventories are stated at the lower of cost or net realizable value. Costs are predominantly determined using the weighted average method.

Investments: Investments are included in Other assets in the Consolidated Balance Sheets. The Company holds equity and cost method investments, and marketable securities as of December 31, 2020. Investments in which the Company is able to exercise significant influence, but do not represent a controlling interest, are accounted for under the equity method; such investments are carried at cost, adjusted to reflect the Company’s proportionate share of income or

loss, less dividends received. Investments in the common stock of affiliated companies over which the Company does not exercise significant influence are accounted for under the cost method. The marketable securities are carried at fair value with unrealized gains and losses recorded to Other income, net in accordance with Accounting Standards Codification (“ASC”) 825.

Leases: The Company leases rail cars, office space, and certain machinery and equipment. The Company determines if an arrangement is a lease at inception of the agreement and classifies its leases based on the terms of the related lease agreement and the criteria contained in Financial Accounting Standards Board (“FASB”) ASC Topic 842, Leases, and related interpretations. See also Note 8 of the Notes to the Consolidated Financial Statements for additional information.

Property, plant and equipment and depreciation: Property, plant and equipment (“PP&E”) are stated at cost less accumulated depreciation. Depreciation is generally computed on the straight-line basis over the estimated useful lives of depreciable assets, which range from 25 to 50 years for buildings and from two to 25 years for all other assets. Where permitted by law, accelerated depreciation methods are used for tax purposes. The Company recognized depreciation expense of $183 million, $191 million, and $217 million for the years ended December 31, 2020, 2019, and 2018, respectively. The Company reviews the recoverability of the net book value of PP&E for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If this review indicates that the carrying values will not be recovered, the carrying values would be reduced to fair value and an impairment loss would be recognized. As required under GAAP, the impairment analysis for long-lived assets occurs before the goodwill impairment assessment described below. No PP&E impairment was recognized in the year ended December 31, 2020.

The following table summarizes the Company’s PP&E and accumulated depreciation as of the dates presented:


	As of December 31,
(in millions)	2020		2019
Property, plant and equipment:
Land	$	207	$	202
Buildings		802		748
Machinery and equipment		4,621		4,412
Property, plant and equipment, at cost		5,630		5,362
Accumulated depreciation		(3,175)		(3,056)
Property, plant and equipment, net	$	2,455	$	2,306

Goodwill and other intangible assets: Goodwill ($902 million and $801 million at December 31, 2020 and 2019, respectively) represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. The Company also has other intangible assets of $444 million and $437 million at December 31, 2020 and 2019, respectively. The original carrying value of goodwill and accumulated impairment charges by reportable business segment at December 31, 2020 was as follows:


	North		South		Asia-
(in millions)	America		America		Pacific		EMEA		Total
Goodwill before impairment charges	$	601	$	55	$	225	$	65	$	946
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at January 1, 2019		600		22		104		65		791
Acquisitions		7		—		—		—		7
Currency translation		—		(1)		4		—		3
Balance at December 31, 2019		607		21		108		65		801
Acquisitions		14		—		85		—		99
Currency translation		—		(4)		2		4		2
Balance at December 31, 2020	$	621	$	17	$	195	$	69	$	902

The following table summarizes the Company’s other intangible assets as of the dates presented:


	As of December 31, 2020
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	143	$	—	$	143	—
Patents		33		(2)		31	12
Customer relationships		356		(115)		241	20
Technology		103		(101)		2	9
Other		38		(11)		27	19
Total other intangible assets	$	673	$	(229)	$	444	17

	As of December 31, 2019
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	178	$	—	$	178	—
Customer relationships		333		(93)		240	20
Technology		103		(91)		12	9
Other		20		(13)		7	15
Total other intangible assets	$	634	$	(197)	$	437	17

Definite-lived intangible assets are stated at cost less accumulated amortization. Amortization is computed on the straight-line basis over the estimated useful lives of definite-lived intangible assets. Amortization expense related to intangible assets was $30 million, $29 million, and $30 million for the years ended December 31, 2020, 2019, and 2018, respectively. The Company reviews the recoverability of the net book value of definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If this review indicates that the carrying values will not be recovered, the carrying values would be reduced to fair value and an impairment loss would be recognized.

Based on acquisitions completed through December 31, 2020, intangible asset amortization expense for the next five years is shown below.


(in millions)
Year	Amortization Expense
2021	$	20
2022		19
2023		19
2024		19
2025		18
Balance thereafter		206

The Company assesses indefinite-lived intangible assets and goodwill for impairment annually (or more frequently if impairment indicators arise). The Company has chosen to perform this annual impairment assessment as of July 1 of each year.

In testing indefinite-lived intangible assets for impairment, the Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is impaired. After assessing the qualitative factors, if the Company determines that it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is greater than its carrying amount, then it would not be required to compute the fair value of the indefinite-lived intangible asset. In the event the qualitative assessment leads the Company to conclude otherwise, then it would be required to determine the fair value of the indefinite-lived intangible assets and perform a quantitative impairment test in accordance with ASC Topic 350-30, General Intangibles Other than Goodwill. In performing the qualitative analysis, the Company considers various factors including net sales derived from these intangibles and certain market and industry conditions. Based on the results of its assessment, the Company concluded that as of July 1, 2020, there were no impairments in its indefinite-lived intangible assets.

Subsequent to the Company’s annual assessment, the Company identified an impairment indicator and recorded an impairment of $35 million for its indefinite-lived intangible asset associated with the TIC Gums tradename. The

impairment event was the result of management’s decision to rebrand the TIC Gums products using the broader Ingredion name and the Ingredient Solutions sub-branding beginning in 2021. There is no change to the projected revenue or operating income from the legacy brands.

In testing goodwill for impairment, the Company first assesses qualitative factors in determining whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. After assessing the qualitative factors, if the Company determines that it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, then the Company does not perform an impairment test. If the Company concludes otherwise, then the Company performs the impairment test as described in ASC Topic 350. Under this impairment test, the fair value of the reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of its net assets, goodwill is not considered impaired and no further testing is required. If the carrying value of the net assets exceeds the fair value of the reporting unit, then an impairment exists for the difference between the fair value and carrying value of the reporting unit. This difference is not to exceed the goodwill recorded at the reporting unit. Based on the results of the annual assessment, the Company concluded that as of July 1, 2020, there were no impairments in its reporting units.

Revenue recognition: The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which is more fully described in Note 4 of the Notes to the Consolidated Financial Statements.

Hedging instruments: Derivative financial instruments used by the Company consist of commodity futures and option contracts, forward currency contracts and options, interest rate swap agreements and Treasury lock agreements (“T-Locks”). See also Note 6 of the Notes to the Consolidated Financial Statements for additional information.

On the date a derivative contract is entered into, the Company designates the derivative as a hedge of variable cash flows to be paid related certain forecasted transactions (“a cash flow hedge”), as a hedge of the fair value of certain firm commitments (“a fair value hedge”), or as a non-designated hedging instrument as defined by ASC 815, Derivatives and Hedging. This process includes linking all derivatives that are designated as cash flow or fair value hedges to specific assets and liabilities on the Consolidated Balance Sheets, or to specific firm commitments or forecasted transactions. These hedges are accounted for using ASC Topic 815. For all hedging relationships, the Company documents the hedging relationships and its risk-management objective and strategy for undertaking the hedge transactions, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed and a description of the method of measuring ineffectiveness. The Company also formally assesses both, at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows or fair values of hedged items. When it is determined that a derivative is not highly effective as a hedge or has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively.

The Company discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows or fair value of the hedged item, the derivative is de-designated as a hedging instrument because it is unlikely that a forecasted transaction will occur, or management determines that designation of the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued, the Company continues to carry the derivative on the Consolidated Balance Sheets at its fair value, and gains and losses that were included in AOCI are recognized in earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the month a hedge is determined to be ineffective.

Share-based compensation: The Company has a stock incentive plan that provides for share-based employee compensation, including the granting of stock options, shares of restricted stock, restricted stock units, and performance shares to certain key employees. Compensation expense is recognized in the Consolidated Statements of Income for the Company’s share-based employee compensation plan. The plan is more fully described in Note 11 of the Notes to the Consolidated Financial Statements.

Earnings per common share: Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the Company by the weighted average number of shares outstanding. Diluted EPS is calculated using the treasury stock method, computed by dividing net income attributable to the Company by the weighted average number of shares outstanding, including the dilutive effect of outstanding stock options and other instruments associated with long-term incentive compensation plans.

Risks and uncertainties: The Company operates domestically and internationally. In each country, the business and assets are subject to varying degrees of risk and uncertainty. The Company insures its business and assets in each country against insurable risks in a manner that it deems appropriate. Because of this geographic dispersion, the Company believes that a loss from non-insurable events in any one country would not have a material adverse effect on the Company’s operations as a whole. Additionally, the Company believes there is no significant concentration of risk with any single customer or supplier whose failure or non-performance would materially affect the Company’s results.

Recently Adopted Accounting Standards

ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350)

In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the subsequent measurement of goodwill as this ASU eliminates Step 2 from the goodwill impairment test. Under this ASU, an entity will continue to perform its annual, or interim, goodwill impairment test to determine if the fair value of a reporting unit is greater than its carrying amount. An entity should then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value using the results of its Step 1 assessment, with the loss recognized not to exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 at the beginning of its 2020 fiscal year. This ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption.

ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326)

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. This ASU is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2016-13 at the beginning of its 2020 fiscal year, and this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption.

ASU No. 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases. The Company adopted this updated standard as of January 1, 2019, using the modified retrospective approach and the effective date as its date of initial application. The Company elected the package of three practical expedients permitted under the transition guidance, which among other things allowed the Company to carry forward the historical lease classification of existing leases and to not reassess expired contracts for leases. The practical expedient for hindsight to determine lease term was not elected by the Company. The standard resulted in the initial recognition of $170 million of total operating lease liabilities and $161 million of operating lease assets on the Consolidated Balance Sheet on January 1, 2019. The standard did not have a material impact on the Consolidated Statement of Income or Consolidated Statement of Cash Flows upon adoption. The disclosures required by the recently adopted accounting standard are included in Note 8 of the Notes to the Consolidated Financial Statements.

ASU No. 2017-12 and ASU 2018-16, Derivatives and Hedging (Topic 815)

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This Update modifies accounting guidance for hedge accounting by making more hedge strategies eligible for hedge accounting, amending presentation and disclosure requirements, and changing how companies assess ineffectiveness. The intent is to simplify the application of hedge accounting and increase transparency of information about an entity’s risk management activities. The amended guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company completed its assessment of these updates adopted on January 1, 2019, including potential changes to existing hedging arrangements, and determined the adoption of the guidance did not have a material impact on the Company’s Consolidated Financial Statements.

ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans.

In August 2018, the FASB issued ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. This Update modifies the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance requires disclosure changes to be presented on a retrospective basis. The Company adopted ASU 2018-14 at the beginning of its 2020 fiscal year. The Company has presented the disclosure requirements in accordance with the Update in the Consolidated Financial Statements.

Acquisitions

12 Months Ended

Dec. 31, 2020

Acquisitions

Acquisitions

NOTE 3 – Acquisitions

On July 1, 2020, the Company completed its acquisition of a controlling interest in PureCircle Limited (“PureCircle”). PureCircle is one of the leading producers and innovators of plant-based stevia sweeteners for global food and beverage industries. To complete the closing, the Company made a total cash payment of $208 million, net of $14 million of cash acquired, which it funded from cash on hand. After the closing, the Company owned 75% of PureCircle, while the remaining 25% is owned by former PureCircle shareholders. PureCircle is consolidated by Ingredion for financial reporting purposes, with a corresponding redeemable non-controlling interest of $74 million recorded for the portion not owned by the Company at the time of acquisition. The results of PureCircle are reported on a one-month lag within the Company’s Consolidated Financial Statements during the integration process of the companies. The results of the acquired operations are included in the Company’s consolidated results from the acquisition date within the Asia-Pacific reportable segment. Pro-forma results of operations for the acquisition have not been presented as the effect of the acquisition would not be material to the Company’s results of operations for any periods presented.

The Company has completed its allocation of the purchase price to the assets acquired and liabilities assumed, except for goodwill, contingent liabilities, and taxes, which were preliminarily recorded based on information and incorporating management’s best estimates. Contingent liabilities and taxes remain preliminary pending receipt of certain information required to finalize the determination of fair value. The assets acquired and liabilities assumed in the transaction are generally recorded at their estimated acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred.

Goodwill represents the amount by which the purchase price exceeds the estimated fair value of the net assets acquired. The goodwill results from synergies and other operational benefits expected to be derived from the acquisition. The goodwill related to PureCircle is not tax-deductible due to the structure of the acquisition.

The following table summarizes the preliminary purchase price allocations for the PureCircle acquisition as of December 31, 2020:


(in millions)		PureCircle
Working capital (excluding cash)	$	60
Property, plant and equipment		91
Other, net		(22)
Identifiable intangible assets		68
Goodwill		85
Total fair value, net of cash		282
Less: Non-redeemable non-controlling interests		74
Total purchase price, net of cash	$	208

The identifiable intangible assets for the acquisition of a controlling interest in PureCircle includes customer relationships, tradenames, and proprietary technology. The fair values of these intangible assets were determined to be Level 3 under the fair value hierarchy. Level 3 inputs are unobservable inputs for an asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for fair value estimates to be made in situations in which there is little, if any, market activity for an asset or liability at the measurement date. For more information on the fair value hierarchy, see Note 6 of the Notes to the Consolidated Financial Statements.

During the 12 months ended December 31, 2018, the Company entered into an equity method investment with Verdient Foods, Inc. (“Verdient”) by acquiring 20% of its outstanding shares. Verdient is a Canada-based producer of

pulse-based protein concentrates and flours from peas, lentils, and fava beans for human food applications. On November 3, 2020, the Company acquired the remaining 80% of the outstanding shares, as well as the leased land and buildings not owned by Verdient. To complete the closing, the Company made a total cash payment of CAD $33 million (USD $26 million), which it funded from cash on hand. The results of the acquired operation are included in the Company’s consolidated results from the acquisition date within the North America business segment. A preliminary allocation of the purchase price to the assets acquired and liabilities assumed was made based on available information and incorporating management’s best estimates. The acquisition of Verdient added $14 million of goodwill and $15 million of tangible assets as of the acquisition date. Pro-forma results of operations for the acquisition made in the year ended December 31, 2020 have not been presented as the effect of the acquisition would not be material to the Company’s results of operations for any periods presented.

On March 1, 2019, the Company completed its acquisition of Western Polymer LLC (“Western Polymer”), a privately-held, U.S.-based company headquartered in Moses Lake, Washington, that produces native and modified potato starches for industrial and food applications for $42 million, net of cash acquired of $4 million. The acquisition expanded the Company's potato starch manufacturing capacity, enhanced its processing capabilities, and broadened its higher-value specialty ingredients business and customer base. The results of the acquired operation are included in the Company’s consolidated results from the acquisition date within the North America business segment. During the three months ended March 31, 2020, the Company finalized the purchase price allocation for the Western Polymer acquisition. The finalization of goodwill and intangible assets did not have a significant impact on previously estimated amounts. The acquisition of Western Polymer added $13 million of goodwill and intangible assets and $29 million of tangible assets as of the acquisition date. Pro-forma results of operations for the acquisition made in the year ended December 31, 2019 have not been presented as the effect of the acquisition would not be material to the Company’s results of operations for any periods presented.

The Company incurred $11 million, $3 million, and $0 of pre-tax acquisition and integration costs in the years ended December 31, 2020, 2019, and 2018, respectively, associated with its acquisitions.

Revenue Recognition

12 Months Ended

Dec. 31, 2020

Revenue Recognition

Revenue Recognition

NOTE 4 – Revenue Recognition

The Company applies the provisions of ASC 606-10, Revenue from Contracts with Customers. The Company recognizes revenue under the core principle to depict the transfer of products to customers in an amount reflecting the consideration the Company expects to receive. In order to achieve that core principle, the Company applies the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

The Company identified customer purchase orders, which in some cases are governed by a master sales agreement, as the contracts with its customers. For each contract, the Company considers the transfer of products, each of which is distinct, to be the identified performance obligation. In determining the transaction price for the performance obligation, the Company evaluates whether the price is subject to adjustment to determine the consideration to which the Company expects to be entitled. The pricing model can be fixed or variable within the contract. The variable pricing model is based on historical commodity pricing and is determinable prior to completion of the performance obligation. Additionally, the Company has certain sales adjustments for volume incentive discounts and other discount arrangements that reduce the transaction price. The reduction of transaction price is estimated using the expected value method based on an analysis of historical volume incentives or discounts, over a period of time considered adequate to account for current pricing and business trends. Historically, actual volume incentives and discounts relative to those estimated and included when determining the transaction price have not materially differed. Volume incentives and discounts are accrued at the satisfaction of the performance obligation and accounted for in Accounts payable and Accrued liabilities in the Consolidated Balance Sheets. These amounts are not significant as of December 31, 2020 and 2019. The product price as specified in the contract, net of any discounts, is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Payment is received shortly after the performance obligation is satisfied; therefore, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component.

Revenue is recognized when the Company’s performance obligation is satisfied and control is transferred to the customer, which occurs at a point in time, either upon delivery to an agreed upon location or to the customer. Further, in

determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer.

Shipping and handling activities related to contracts with customers represent fulfillment costs and are recorded in Cost of sales in the Consolidated Statements of Income. Taxes assessed by governmental authorities and collected from customers are accounted for on a net basis and excluded from net sales. The Company applies a practical expedient to expense costs to obtain a contract as incurred as most contracts are one year or less. These costs primarily include the Company’s internal sales force compensation. Under the terms of these programs, the compensation is generally earned and the costs are recognized at the time the revenue is recognized.

From time to time the Company may enter into long-term contracts with its customers. Historically, the contracts entered into by the Company do not result in significant contract assets or liabilities. Any such arrangements are accounted for in Other assets or Accrued liabilities in the Consolidated Balance Sheets. There were no significant contract assets or liabilities as of December 31, 2020, and 2019.


(in millions)	2020		2019		2018
Net sales to unaffiliated customers:
North America	$	3,662	$	3,834	$	3,857
South America		919		960		988
Asia-Pacific		813		823		837
EMEA		593		592		607
Total	$	5,987	$	6,209	$	6,289

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Restructuring and Impairment Charges

12 Months Ended

Dec. 31, 2020

Restructuring and Impairment Charges

Restructuring and Impairment Charges

NOTE 5 – Restructuring and Impairment Charges

For the year ended December 31, 2020, the Company recorded a total of $93 million of pre-tax restructuring and impairment charges, including $48 million of pre-tax restructuring costs and $45 million of pre-tax impairment charges. The Company recorded pre-tax restructuring charges of $25 million for its Cost Smart selling, general and administrative expense (“SG&A”) program. These costs include $18 million of other costs, including professional services, and $7 million of employee-related severance for the year ended December 31, 2020. The professional services costs were recorded primarily in the Company’s North America operations, while the employee-related severance were primarily recorded in the Company’s North America and EMEA operations.

The Company also recorded $23 million of pre-tax restructuring charges for its Cost Smart Cost of sales program. These costs included $10 million of restructuring charges in relation to the closure of the Lane Cove, Australia production facility, including $5 million of inventory and mechanical store write-offs, $4 million of other costs, and $1 million of accelerated depreciation. Additionally, the Company recorded $13 million of restructuring charges related to facility and product line closures in North America during the year, including the closure of the Berwick, Pennsylvania manufacturing facility and the cessation of ethanol production at the Cedar Rapids, Iowa facility. These restructuring charges included $7 million of accelerated depreciation, $2 million of employee severance, and $4 million of other restructuring-related charges.

During the year ended December 31, 2020, the Company recorded a $35 million impairment charge with respect to its indefinite-lived intangible asset associated with the TIC Gums tradename, due to the Company's decision to change its marketing strategy related to the brand. Additionally, the Company recorded a $10 million other-than-temporary impairment of its equity method investment in Verdient for the year ended December 31, 2020, triggered by decrease in fair value on its equity method investment from the agreed upon purchase price to acquire the remaining 80% interest in Verdient.

For the year ended December 31, 2019, the Company recorded $57 million of pre-tax restructuring charges. Pre-tax restructuring charges of $28 million were recorded for the year ended December 31, 2019 for the Cost Smart SG&A

program. These costs included $15 million of other costs, including professional services, and $13 million of employee-related severance for the year ended December 31, 2019. These charges were recorded primarily in the Company’s North America and South America operations, and include $2 million of other costs associated with the Finance Transformation initiative in Latin America for the year ended December 31, 2019.

Additionally, for the year ended December 31, 2019, the Company recorded $29 million for its Cost Smart Cost of sales program. For the year ended December 31, 2019, the Company recorded $15 million of restructuring charges in relation to the closure of the Lane Cove, Australia production facility, consisting of $10 million of accelerated depreciation, $4 million of employee-related severance, and $1 million of other costs. Additionally, for the year ended December 31, 2019, the Company recorded $3 million of employee-related expenses primarily related to South America operations restructuring. The Company also recorded $11 million of other costs, including professional services, for the year ended December 31, 2019, primarily in North America, including other costs of $2 million in relation to the prior year cessation of wet-milling at the Stockton, California manufacturing facility.

A summary of the Company’s severance accrual at December 31, 2020, is as follows (in millions):


Balance in severance accrual as of December 31, 2019	$	15
Cost Smart Cost of sales and SG&A		9
Acquisition related		1
Payments made to terminated employees		(12)
Foreign exchange translation		(1)
Balance in severance accrual as of December 31, 2020	$	12

Of the $12 million severance accrual at December 31, 2020, $11 million is expected to be paid within the next 12 months.

As of December 31, 2020, the Company identified certain assets within the Stockton, California and Lane Cove, Australia locations that met the held for sale criteria. The Company expects to sell these assets at a fair value equal to or greater than the carrying value as of December 31, 2020, and did not record a gain or loss associated with the reclassification of these assets to held for sale for the year ended December 31, 2020. The assets classified as held for sale are reflected in the Consolidated Balance Sheets as follows:


(in millions)		December 31, 2020		December 31, 2019
Other assets	$	8	$	—

Financial Instruments, Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2020

Financial Instruments, Derivatives and Hedging Activities

Financial Instruments, Derivatives and Hedging Activities

NOTE 6 – Financial Instruments, Derivatives and Hedging Activities

The Company is exposed to market risk stemming from changes in commodity prices (primarily corn and natural gas), foreign currency exchange rates and interest rates. In the normal course of business, the Company actively manages its exposure to these market risks by entering into various hedging transactions, authorized under established policies that place controls on these activities. These transactions utilize exchange-traded derivatives or over-the-counter derivatives with investment grade counterparties. Derivative financial instruments currently used by the Company consist of commodity-related futures, options, and swap contracts, foreign currency-related forward contracts, and interest rate swaps.

Commodity price hedging: The Company’s principal use of derivative financial instruments is to manage commodity price risk relating to anticipated purchases of corn and natural gas to be used in the manufacturing process, generally over the next 12 to 24 months. The Company maintains a commodity-price risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by commodity-price volatility. To manage price risk related to corn purchases primarily in North America, the Company uses corn futures and option contracts that trade on regulated commodity exchanges to lock-in corn costs associated with fixed-priced customer sales contracts. The Company also uses over-the-counter natural gas swaps in North America to hedge a portion of its natural gas usage. These derivative financial instruments limit the impact that volatility resulting from fluctuations in market prices will have on corn and natural gas purchases. The Company’s natural gas derivatives and the majority of its corn derivatives have been designated as cash flow hedging instruments.

The Company enters into certain corn derivative instruments that are not designated as hedging instruments as defined by ASC 815, Derivatives and Hedging. Therefore, the realized and unrealized gains and losses from these instruments are recognized in cost of sales during each accounting period. These derivative instruments also mitigate commodity price risk related to anticipated purchases of corn.

For commodity hedges designated as cash flow hedges, unrealized gains and losses associated with marking the commodity hedging contracts to market (fair value) are recorded as a component of other comprehensive income (“OCI”) and included in the equity section of the Consolidated Balance Sheets as part of AOCI. These amounts are subsequently reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the month a hedge is determined to be ineffective. The Company assesses the effectiveness of a commodity hedge contract based on changes in the contract’s fair value. The changes in the market value of such contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in the price of the hedged items. Gains and losses from cash flow hedging instruments reclassified from AOCI to earnings are reported as Cash provided by operating activities on the Consolidated Statements of Cash Flows.

As of December 31, 2020, the Company had outstanding futures and option contracts that hedged the forecasted purchase of approximately 95 million bushels of corn, and outstanding swap and option contracts that hedged the forecasted purchase of approximately 33 million mmbtu’s of natural gas.

Foreign currency hedging: Due to the its global operations, including operations in many emerging markets, the Company is exposed to fluctuations in foreign currency exchange rates. As a result, the Company has exposure to translational foreign-exchange risk when the results of its foreign operations are translated to U.S. dollars and to transactional foreign-exchange risk when transactions not denominated in the functional currency are revalued. The Company’s foreign-exchange risk management strategy uses derivative financial instruments such as foreign currency forward contracts, swaps and options to manage its transactional foreign exchange risk. The Company enters into foreign currency derivative instruments that are designated as both cash flow hedging instruments as well as instruments not designated as hedging instruments as defined by ASC 815, Derivatives and Hedging, in order to mitigate transactional foreign-exchange risk. Gains and losses from derivative financial instruments not designated as hedging instruments are marked to market in earnings during each accounting period.

The Company hedges certain assets using foreign currency derivatives not designated as hedging instruments, which had a notional value of $410 million and $621 million as of December 31, 2020 and December 31, 2019, respectively. The Company also hedges certain liabilities using foreign currency derivatives not designated as hedging instruments, which had a notional value of $224 million and $356 million as of December 31, 2020 and 2019, respectively.

The Company hedges certain assets using foreign currency cash flow hedging instruments, which had a notional value of $401 million and $374 million as of December 31, 2020 and December 31, 2019, respectively. The Company also hedges certain liability positions using foreign currency cash flow hedging instruments, which had a notional value of $542 million and $541 million as of December 31, 2020 and 2019, respectively.

Interest rate hedging: The Company assesses its exposure to variability in interest rates by identifying and monitoring changes in interest rates that may adversely impact future cash flows and the fair value of existing debt instruments, and by evaluating hedging opportunities. The Company’s risk management strategy is to monitor interest rate risk attributable to both the Company’s outstanding and forecasted debt obligations as well as the Company’s offsetting hedge positions. Derivative financial instruments that have been used by the Company to manage its interest rate risk consist of interest rate swaps and T-Locks.

The Company periodically enters into interest rate swaps to hedge its exposure to interest rate changes. The changes in fair value of interest rate swaps designated as hedging instruments that effectively offset the variability in the fair value of outstanding debt obligations are reported in earnings. These amounts offset the gains or losses (the changes in fair value) of the hedged debt instruments that are attributable to changes in interest rates (the hedged risk), which are also recognized in earnings. As of December 31, 2020, the Company did not have any outstanding interest rate swaps. As of December 31, 2019, the Company had an outstanding interest rate swap agreement that converted the interest rates on $200 million of its $400 million 4.625% senior notes due November 1, 2020, to variable rates. The Company redeemed these notes in July 2020 and settled the outstanding interest rate swap.

The Company periodically enters into T-Locks to hedge its exposure to interest rate changes. The T-Locks are designated as hedges of the variability in cash flows associated with future interest payments caused by market fluctuations in the benchmark interest rate until the fixed interest rate is established, and are accounted for as cash flow hedges. Accordingly, changes in the fair value of the T-Locks are recorded to AOCI until the consummation of the underlying debt offering, at which time any realized gain (loss) is amortized to earnings over the life of the debt. During the year ended December 31, 2020, the Company entered into and settled T-Locks associated with the issuance of senior notes. The realized loss upon settlement of the T-Locks was recorded in AOCI and is amortized into earnings over the life of the senior notes. The Company did not have outstanding T-Locks as of December 31, 2019 and December 31, 2020.

The derivative instruments designated as cash flow hedges included in AOCI as of December 31, 2020 and 2019 are reflected below:


Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) included in AOCI as of December 31,
(in millions)	2020		2019
Commodity contracts, net of income tax effect of $16 and $5, respectively	$	47	$	(11)
Foreign currency contracts, net of income tax effect of $— and $1, respectively		(1)		3
Interest rate contracts, net of income tax effect of $1 and $ —, respectively		(4)		(1)
Total	$	42	$	(9)

The fair value and balance sheet location of the Company’s derivative instruments, presented gross in the Consolidated Balance Sheets, are reflected below:


	Fair Value of Hedging Instruments as of December 31, 2020
	Designated Hedging Instruments (in millions)								Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total			Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total
Accounts receivable, net	$	50	$	7	$	—	$	57	$	3	$	4	$	—	$	7
Other assets		4		—		—		4		—		1		—		1
Assets		54		7		—		61		3		5		—		8
Accounts payable and accrued liabilities		4		12		—		16		1		8		—		9
Non-current liabilities		2		—		—		2		—		2		—		2
Liabilities		6		12		—		18		1		10		—		11
Net (Liabilities)/Assets	$	48	$	(5)	$	—	$	43	$	2	$	(5)	$	—	$	(3)


	Fair Value of Hedging Instruments as of December 31, 2019
	Designated Hedging Instruments (in millions)								Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total			Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total
Accounts receivable, net	$	5	$	7	$	—	$	12	$	2	$	4	$	—	$	6
Other assets		1		3		1		5		—		1		—		1
Assets		6		10		1		17		2		5		—		7
Accounts payable and accrued liabilities		13		4		—		17		1		8		—		9
Non-current liabilities		4		4		—		8		—		2		—		2
Liabilities		17		8		—		25		1		10		—		11
Net (Liabilities)/Assets	$	(11)	$	2	$	1	$	(8)	$	1	$	(5)	$	—	$	(4)

Additional information pertaining to the Company’s fair value hedges is presented below:


Line item in the statement of financial position in which the hedged item is included (in millions)	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
Balance sheet date as of	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Interest Rate Contracts:
Long-Term Debt	$	—	$	(201)	$	—	$	(1)

Additional information relating to the Company’s derivative instruments is presented below:


Derivatives in Cash Flow Hedging Relationships	Gains (Losses) Recognized in OCI on Derivatives						Income Statement	Gains (Losses) Reclassified from AOCI into Income
(in millions)	Year Ended December 31,						Location	Year Ended December 31,
	2020		2019		2018			2020		2019		2018
Commodity contracts	$	17	$	(24)	$	8	Cost of sales	$	(62)	$	(12)	$	(6)
Foreign currency contracts		(7)		5		—	Net sales/cost of sales		(2)		—		1
Interest rate contracts		(5)		—		—	Financing costs, net		(1)		(2)		(1)
Total	$	5	$	(19)	$	8		$	(65)	$	(14)	$	(6)

Derivatives in Fair Value Hedging Relationships

Income Statement Location of Derivatives Designated as

Gains (Losses) Recognized in Income

Income Statement Location

Gains (Losses) Recognized in Income

(in millions)

Hedging Instruments

Year Ended December 31,

of Hedged Items

Year Ended December 31,

2020

2019

2018

2020

2019

2018

Interest rate contracts

Financing costs, net

(1)

(2)

Financing costs, net

(2)

As of December 31, 2020, AOCI included $44 million of net gains (net of income taxes of $15 million) on T-Locks, foreign currency hedges, and commodities-related derivative instruments designated as cash flow hedges that are expected to be reclassified into earnings during the next 12 months.

Fair Value Measurements: Presented below are the fair values of the Company’s financial instruments and derivatives as of the dates presented:


	As of December 31, 2020								As of December 31, 2019
(in millions)	Total		Level 1 (a)		Level 2 (b)		Level 3 (c)		Total		Level 1 (a)		Level 2 (b)		Level 3 (c)
Available for sale securities	$	11	$	11	$	—	$	—	$	13	$	13	$	—	$	—
Derivative assets		69		53		16		—		24		7		17		—
Derivative liabilities		29		3		26		—		36		5		31		—
Long-term debt		1,751		—		1,751		—		1,751		—		1,751		—

(a)

Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b)

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly for substantially the full term of the financial instrument. Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability or can be derived principally from or corroborated by observable market data.

(c)

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The carrying values of cash equivalents, short-term investments, accounts receivable, accounts payable, and short-term borrowings approximate fair values. Commodity futures, options, and swap contracts are recognized at fair value. Foreign currency forward contracts, swaps, and options are also recognized at fair value. The fair value of the Company’s Long-term debt is estimated based on quotations of major securities dealers who are market makers in the securities. As of December 31, 2020, the carrying value and fair value of the Company’s Long-term debt was approximately $1.8 billion.

Financing Arrangements

12 Months Ended

Dec. 31, 2020

Financing Arrangements

Financing Arrangements

NOTE 7 – Financing Arrangements

The Company had total debt outstanding of approximately $2.2 billion and approximately $1.8 billion at December 31, 2020 and 2019, respectively. Short-term borrowings at December 31, 2020 and 2019 consist primarily of the term loan credit agreement that matures in April 2021 and amounts outstanding under various unsecured local country operating lines of credit.

During the year ended December 31, 2020, the Company sold its (i) 2.900% senior notes due 2030 in the principal amount of $600 million (the “2030 Notes”) and (ii) 3.900% senior notes due 2050 in the principal amount of $400 million (the “2050 Notes” and, together with the “2030 Notes,” the “Notes”). The Company recorded the aggregate discount of approximately $7 million at which the Notes were issued and capitalized debt issuance costs of approximately $9 million associated with the Notes.

The Company applied the net proceeds from the sale of the Notes to pay in full the outstanding balance of $394 million under the revolving credit facility described below (the “Revolving Credit Facility”) and set aside funds to repay its 4.625% senior notes due November 1, 2020 (the “November 2020 Notes”). On June 8, 2020, the Company issued a notice for the redemption in full of all $400 million principal amount of the November 2020 Notes. The November 2020 Notes were redeemed on July 9, 2020 for a total redemption price of $409 million, including $4 million of accrued interest and a $5 million “make-whole” premium as set forth in the indenture governing the November 2020 Notes.

During the year ended December 31, 2020, the Company used proceeds from the Revolving Credit Facility to repay $200 million of its 5.62% senior notes due March 25, 2020.

On April 12, 2019, the Company amended and restated the Term Loan Credit Agreement for a $165 million senior unsecured term loan credit facility that was set to mature on April 25, 2019 (“Term Loan”) to establish a 24-month senior unsecured term loan credit facility in an amount up to $500 million that matures on April 12, 2021. The Company used the $500 million of borrowings under the new facility to pay down amounts outstanding under the Revolving Credit Facility and to pay off the Term Loan balance. The balance of the amended and restated term loan credit agreement for the new facility (“Amended Term Loan Credit Agreement”) was $380 million as of December 31, 2020.

All borrowings under the Amended Term Loan Credit Agreement bear interest at a variable annual rate based on the specified London Interbank Offered Rate (“LIBOR”) or a base rate, at the Company’s election, subject to the terms and conditions thereof, plus, in each case, an applicable margin. The Company is required to pay a fee on the unused availability under the Amended Term Loan Credit Agreement. The Amended Term Loan Credit Agreement contains customary representations, warranties, covenants and events of default, including covenants restricting the incurrence of liens, the incurrence of indebtedness by the Company’s subsidiaries and certain fundamental changes involving the Company and its subsidiaries, subject to certain exceptions in each case. The Company must also maintain a specified consolidated leverage ratio and consolidated interest coverage ratio. As of December 31, 2020, the Company was in compliance with these financial covenants. The occurrence of an event of default under the Amended Term Loan Credit Agreement could result in all loans and other obligations being declared due and payable and the term loan credit facility being terminated.

On October 11, 2016, the Company entered into a new five-year, senior, unsecured $1 billion revolving credit agreement (the “Revolving Credit Agreement”) to establish the Revolving Credit Facility, which replaced its previously existing $1 billion senior unsecured revolving credit facility. All committed pro rata borrowings under the Revolving Credit Facility bear interest at a variable annual rate based on LIBOR or a base rate, at the Company’s election, subject to the terms and conditions thereof, plus, in each case, an applicable margin based on the Company’s leverage ratio (as reported in the financial statements delivered pursuant to the Revolving Credit Agreement) or the Company’s credit rating. Subject to specified conditions, the Company may designate one or more of its subsidiaries as additional borrowers under the Revolving Credit Agreement provided that the Company guarantees all borrowings and other obligations of any such subsidiaries thereunder.

The Revolving Credit Agreement contains customary representations, warranties, covenants, events of default, terms and conditions, including covenants restricting on liens, subsidiary debt and mergers, subject to certain exceptions in each case. The Company must also comply with a leverage ratio covenant and an interest coverage ratio covenant. As of December 31, 2020, the Company was in compliance with these financial covenants. The occurrence of an event of default under the Revolving Credit Agreement could result in all loans and other obligations under the agreement being declared due and payable and the Revolving Credit Facility being terminated.

As of December 31, 2020, there were no borrowings outstanding under the Revolving Credit Agreement. The Revolving Credit Agreement expires on October 10, 2021. In addition to borrowing availability under its Revolving Credit Agreement, the Company has approximately $1.2 billion of unused operating lines of credit in the various foreign countries in which it operates.

Presented below are the Company’s debt carrying amounts, net of related discounts, premiums, and debt issuance costs, and fair values as of December 31, 2020 and 2019:


	December 31, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
(in millions)	Amount		Value		Amount		Value
2.900% senior notes due June 1, 2030	$	594	$	596	$	—	$	—
3.200% senior notes due October 1, 2026		497		500		497		491
3.900% senior notes due June 1, 2050		390		395		—		—
4.625% senior notes due November 1, 2020		—		—		400		399
6.625% senior notes due April 15, 2037		253		246		253		246
5.620% senior notes due March 25, 2020		—		—		200		200
Term loan credit agreement due April 12, 2021		—		—		405		405
Other long-term borrowings		14		14		—		—
Revolving credit facility		—		—		10		10
Fair value adjustment related to hedged fixed rate debt instrument		—		—		1		—
Total long-term debt		1,748		1,751		1,766		1,751
Term loan credit agreement due April 12, 2021		380		380		—		—
Other short-term borrowings		58		58		82		82
Total short-term borrowings		438		438		82		82
Total debt	$	2,186	$	2,189	$	1,848	$	1,833

The Company’s long-term debt matures as follows: $500 million in 2026, $600 million in 2030, $250 million in 2037, and $400 million in 2050.

The Company guarantees certain obligations of its consolidated subsidiaries. The amount of the obligations guaranteed aggregated $58 million and $57 million at December 31, 2020 and 2019, respectively.

Leases

12 Months Ended

Dec. 31, 2020

Leases

Leases

NOTE 8 – Leases

The Company determines if an arrangement is a lease at inception of the agreement. Operating leases are included in operating lease assets, and current and non-current operating lease liabilities in the Company’s Consolidated Balance Sheets. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease asset value includes in its calculation any prepaid lease payments made and any lease incentives received from the arrangement as a reduction of the asset. The Company’s lease terms may include options to extend or terminate the lease, and the impact of these options are included in the lease liability and lease asset calculations when the exercise of the option is at the Company’s sole discretion and it is reasonably certain that the Company will exercise that option. The Company will not separate lease and non-lease components for its leases when it is impracticable to separate the two, such as leases with variable payment arrangements. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The Company has operating leases for certain rail cars, office space, warehouses, and machinery and equipment. The commencement date used for the calculation of the lease obligations recorded is the latter of the commencement date of the new standard (January 1, 2019) or the lease start date. Certain of the leases have options to extend the life of the lease, which are included in the liability calculation when the option is at the sole discretion of the Company and it is reasonably certain that the Company will exercise the option. The Company has certain leases that have variable payments based solely on output or usage of the leased asset. These variable operating lease assets are excluded from the Company’s balance sheet presentation and expensed as incurred. The Company currently has no finance leases.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows:


Lease Cost	Year Ended December 31,		Year Ended December 31,
(in millions)	2020		2019
Operating lease cost	$	58	$	55
Variable operating lease cost		29		24
Short term lease cost		4		3
Lease cost	$	91	$	82

The following is a reconciliation of future undiscounted cash flows to the operating lease liabilities and the related operating lease assets as presented on the Company’s Consolidated Balance Sheet as of December 31, 2020.


Operating Leases	As of
(in millions)	December 31, 2020
2021	$	51
2022		43
2023		33
2024		23
2025		15
Thereafter		37
Total future lease payments		202
Less imputed interest		20
Present value of future lease payments		182
Less current lease liabilities		46
Non-current operating lease liabilities	$	136
Operating lease assets	$	173

Additional information related to the Company’s operating leases is listed below. As part of the adoption of the new lease accounting standard, right-of-use assets obtained in exchange for lease liabilities resulted in the initial recognition of $161 million operating lease assets during the year ended December 31, 2019. The standard adoption also resulted in the initial recognition of $170 million of total operating lease liabilities during the year ended December 31, 2019.


Other Information	Year Ended December 31,			Year Ended December 31,
($ in millions)	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	60		$	55
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	76		$	212
	As of			As of
	December 31, 2020			December 31, 2019
Weighted average remaining lease term:
Operating leases		5.5 years			5.5 years
Weighted average discount rate:
Operating leases		4.9	%		5.7	%

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Taxes

Income Taxes

NOTE 9 – Income Taxes

The components of income before income taxes and the provision for income taxes are shown below:


	Year Ended December 31,
(in millions)	2020		2019		2018
Income (loss) before income taxes:
U.S.	$	(15)	$	74	$	121
Foreign		521		508		500
Total income before income taxes		506		582		621
Provision for income taxes:
Current tax expense:
U.S. federal		1		6		17
State and local		2		2		1
Foreign		156		147		172
Total current tax expense		159		155		190
Deferred tax expense (benefit):
U.S. federal		(18)		(8)		(14)
State and local		(1)		—		(2)
Foreign		12		11		(7)
Total deferred tax expense (benefit)		(7)		3		(23)
Total provision for income taxes	$	152	$	158	$	167

Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting basis and tax basis of assets and liabilities. Significant temporary differences as of December 31, 2020 and 2019 are summarized as follows:


	As of December 31,
(in millions)	2020		2019
Deferred tax assets attributable to:
Employee benefit accruals	$	20	$	23
Pensions and postretirement plans		21		22
Lease liabilities		44		39
Derivative contracts		—		2
Other		60		46
Net operating loss carryforwards		32		24
Foreign tax credit carryforwards		5		1
Total deferred tax assets		182		157
Valuation allowances		(30)		(29)
Total deferred tax assets (net of valuation allowance)		152		128
Deferred tax liabilities attributable to:
Property, plant and equipment		173		175
Identified intangibles		46		41
Right-of-use lease assets		42		37
Foreign withholding and state taxes on unremitted earnings		31		32
Goodwill		20		17
Brazilian indirect tax credits		18		8
Derivative contracts		16		—
Total deferred tax liabilities		346		310
Net deferred tax liabilities	$	194	$	182

Of the $32 million of tax-effected net operating loss carryforwards as of December 31, 2020, approximately $12 million are for state loss carryforwards and approximately $20 million are for foreign loss carryforwards. Of the $24 million of tax-effected net operating loss carryforwards as of December 31, 2019, approximately $9 million are for state loss carryforwards and approximately $15 million are for foreign loss carryforwards. Income tax accounting requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In making this assessment, management considers the level of historical taxable income, scheduled reversal of deferred tax liabilities, tax planning strategies, tax carryovers and projected future taxable income. As of December 31, 2020, the Company maintained valuation allowances of $12 million for state loss carryforwards, $4 million for state credits, $1 million for state Internal Revenue Code section 163(j) limitations, $5 million for foreign tax credits and $6 million for foreign loss carryforwards, all of which management has determined will more likely than not expire prior to realization. As of December 31, 2019, the Company maintained valuation allowances of $9 million for state loss carryforwards, $4 million for state credits, $1 million for state Internal Revenue Code section 163(j) limitations, $1 million for foreign tax credits and $13 million for foreign loss carryforwards all of which management has determined will more likely than not expire prior to realization. In addition, the Company maintains valuation allowances on foreign subsidiaries’ net deferred tax assets of $2 million and $1 million, for the years ended December 31, 2020 and 2019, respectively.

Net operating loss carryforwards disclosed in the financial statements differ from the as-filed tax returns due to an unrecognized tax benefit. Foreign net operating loss carryforwards would increase $19 million, absent the unrecognized tax benefit.

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate follows:


	Year Ended December 31,
	2020		2019		2018
Provision for tax at U.S. statutory rate	21.0	%	21.0	%	21.0	%
Tax rate difference on foreign income	7.9		5.8		5.2
Net impact of tax benefit of intercompany financings	(0.8)		(1.2)		(0.8)
Net impact of global intangible low-taxed income (“GILTI”)	(1.0)		1.2		1.0
Net impact of U.S. foreign tax credits	1.6		1.0		0.5
Net impact of valuation allowance in Argentina	(0.6)		0.3		1.0
Other items, net	1.9		(1.0)		(1.0)
Provision at effective tax rate	30.0	%	27.1	%	26.9	%

The Company has significant operations in Mexico, Pakistan and Colombia where the 2020 statutory tax rates are 30 percent, 29 percent and 33 percent (including local trade taxes), respectively. In addition, the Company's subsidiary in Brazil has a statutory tax rate of 34 percent before the application of local incentives that vary each year.

The Company made an accounting election to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) During the year ended December 31, 2020, the Company made a GILTI high-tax exclusion election with respect to the years ended December 31, 2020 and 2019. As a result, the company recorded a tax benefit in the amount of $5 million, or 1.0 percentage points on the effective tax rate.

During the year ended December 31, 2020, the Company utilized previously unbenefited net operating losses in Argentina and recorded a benefit of $3 million, or 0.6 percentage points on the effective rate. The Company recorded valuation allowances in the amount of $2 million, or 0.3 percentage points on the effective tax rate, and $6 million, or 1.0 percentage points on the effective tax rate for the years ended December 31, 2019 and 2018, respectively.

As of December 31, 2017, for U.S. tax purposes, all of the undistributed earnings and profits of the Company’s foreign subsidiaries were deemed to be repatriated and subjected to a transition tax. As of December 31, 2020, the remaining balance was a $31 million liability for foreign withholding and state income taxes on certain unremitted earnings from foreign subsidiaries. No foreign withholding taxes, federal and state taxes on foreign currency gains/losses have been provided on distributions of approximately $2.2 billion of unremitted earnings of the Company’s foreign subsidiaries, as such amounts are considered permanently reinvested. It is not practicable to estimate the additional income taxes, including applicable foreign withholding taxes that would be due upon the repatriation of these earnings.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for 2020 and 2019 is as follows:


	Year Ended December 31,
(in millions)	2020		2019
Balance at January 1	$	22	$	30
Additions for tax positions related to prior years		33		—
Reductions related to a lapse in the statute of limitations		(9)		(8)
Balance at December 31	$	46	$	22

Of the $46 million of unrecognized tax benefits as of December 31, 2020, $36 million represents the amount that, if recognized, could affect the effective tax rate in future periods. The remaining $10 million includes an offset of $9 million for an income tax receivable and $1 million of federal benefit created as part of a U.S.-Canada tax settlement.

The Company accounts for interest and penalties related to income tax matters within the provision for income taxes. The Company has accrued $4 million of interest expense and penalties related to the unrecognized tax benefits as of December 31, 2020. The accrued interest expense was $2 million as of December 31, 2019.

The Company is subject to U.S. federal income tax as well as income tax in multiple states and non-U.S. jurisdictions. The U.S. federal tax returns are subject to audit for the years 2016 through 2019. In general, the Company’s foreign subsidiaries remain subject to audit for years 2010 and later.

It is reasonably possible that the total amount of unrecognized tax benefits including interest and penalties will increase or decrease within 12 months of December 31, 2020. The Company believes it is reasonably possible that approximately $12 million of unrecognized tax benefits may be recognized within 12 months of December 31, 2020 as a result of a lapse of the statute of limitations, of which $3 million, could affect the effective tax rate. The Company has classified none of the unrecognized tax benefits as current because they are not expected to be resolved within the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Benefit Plans

12 Months Ended

Dec. 31, 2020

Benefit Plans

Benefit Plans

NOTE 10 – Benefit Plans

The Company and its subsidiaries sponsor noncontributory defined benefit pension plans (qualified and non-qualified) covering a substantial portion of employees in the U.S. and Canada, and certain employees in other foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat dollar amounts and years of service. The Company’s general funding policy is to make contributions to the plans in amounts that comply with minimum funding requirements and are within the limits of deductibility under current tax regulations. Certain foreign countries allow income tax deductions without regard to contribution levels, and the Company’s policy in those countries is to make contributions required by the terms of the applicable plan.

Included in the Company’s pension obligation are nonqualified supplemental retirement plans for certain key employees. Benefits provided under these plans are unfunded and payments to plan participants are made directly by the Company.

The Company also provides healthcare and/or life insurance benefits for retired employees in the U.S., Canada, and Brazil. Healthcare benefits for retirees outside of the U.S., Canada, and Brazil are generally covered through local government plans.

Pension Obligation and Funded Status: The changes in pension benefit obligations and plan assets during the years ended December 31, 2020 and 2019, as well as the funded status and the amounts recognized in the Company’s Consolidated Balance Sheets related to the Company’s pension plans at December 31, 2020, and 2019, were as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Benefit obligation
At January 1	$	387	$	357	$	254	$	223
Service cost		5		5		4		3
Interest cost		11		14		10		10
Benefits paid		(23)		(28)		(12)		(11)
Actuarial loss (gain)		29		39		14		24
Curtailment/settlement/amendments		—		—		—		(2)
Foreign currency translation		—		—		5		7
Benefit obligation at December 31	$	409	$	387	$	275	$	254

Fair value of plan assets
At January 1	$	408	$	353	$	231	$	207
Actual return on plan assets		53		82		22		24
Employer contributions		1		1		4		7
Benefits paid		(23)		(28)		(12)		(11)
Plan settlements		—		—		—		(3)
Foreign currency translation		—		—		4		7
Fair value of plan assets at December 31	$	439	$	408	$	249	$	231

Funded status	$	30	$	21	$	(26)	$	(23)

As of December 31, 2020, the increase in the benefit obligation for U.S. and non-U.S. plans was driven by actuarial losses, which mainly resulted from a decline in discount rates due to the fall in bond yields compared to the prior year. As of December 31, 2019, the increase in benefit obligations for U.S. and non-U.S. plans was driven by actuarial losses, which mainly resulted from a decline in discount rates due to the fall in bond yields compared to the prior year.

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2020 and 2019 were as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Non-current asset	$	41	$	32	$	36	$	31
Current liabilities		(1)		(1)		(1)		(2)
Non-current liabilities		(10)		(10)		(61)		(52)
Net asset (liability) recognized	$	30	$	21	$	(26)	$	(23)

Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2020 and 2019 were as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Net actuarial loss	$	12	$	15	$	61	$	62
Transition obligation		—		—		1		1
Prior service credit		(5)		(6)		—		—
Net amount recognized	$	7	$	9	$	62	$	63

The decrease in the net amount recognized in accumulated comprehensive loss at December 31, 2020, for the U.S. pension plans as compared to December 31, 2019, is mainly due to the actual return on assets exceeding the expected return on assets. This is partially offset by the effect of the decrease in discount rates used to measure the Company’s obligations under its U.S. pension plans.

The decrease in the net amount recognized in accumulated comprehensive loss at December 31, 2020, for the non-U.S. pension plans, as compared to December 31, 2019, is mainly due to the actual return on assets exceeding the expected return on assets. This is partially offset by the effect of the decrease in discount rates used to measure the Company’s obligations under its non-U.S. pension plans.

The accumulated benefit obligation for all defined benefit pension plans was $664 million and $601 million at December 31, 2020 and 2019, respectively.

Information for pension plans with a projected benefit obligation in excess of plan assets and an accumulated benefit obligation in excess of plan assets was as follows:


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Projected benefit obligation	$	(11)	$	(11)	$	(81)	$	(56)
Accumulated benefit obligation		(10)		(10)		(70)		(45)
Fair value of plan assets		—		—		19		2

All U.S. plans and most non-U.S. plans value the vested benefit obligation based on the actuarial present value of the vested benefits to which employees are currently entitled based on employees’ expected date of separation or retirement.

Components of net periodic benefit cost consist of the following for the years ended December 31, 2020, 2019, and 2018:


	Year Ended December 31,
	U.S. Plans						Non-U.S. Plans
(in millions)	2020		2019		2018		2020		2019		2018
Service cost	$	5	$	5	$	6	$	4	$	3	$	3
Interest cost		11		14		13		10		10		10
Expected return on plan assets		(21)		(18)		(21)		(8)		(8)		(9)
Amortization of actuarial loss		—		1		—		2		2		2
Amortization of prior service credit		(1)		(1)		—		—		—		—
Net periodic benefit cost	$	(6)	$	1	$	(2)	$	8	$	7	$	6

The service cost component of net periodic benefit cost is presented within either cost of sales or operating expenses on the Consolidated Statements of Income. The interest cost, expected return on plan assets, amortization of actuarial loss, amortization of prior service credit and settlement loss components of net periodic benefit cost are presented as other, non-operating income on the Consolidated Statements of Income.

Actuarial gains and losses in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets are recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees for active defined benefit pension plans and over the average remaining life of a plan’s active employees for frozen defined benefit pension plans.

Total amounts recorded in other comprehensive income and net periodic benefit cost were as follows:


(in millions, pre-tax)	U.S. Plans						Non-U.S. Plans
	2020		2019		2018		2020		2019		2018
Net actuarial (gain) loss	$	(3)	$	(25)	$	19	$	1	$	7	$	4
Prior service cost		—		—		—		—		1		—
Amortization of actuarial loss		—		(1)		—		(2)		(2)		(2)
Amortization of prior service credit		1		1		—		—		—		—
Total recorded in other comprehensive income		(2)		(25)		19		(1)		6		2
Net periodic benefit cost		(6)		1		(2)		8		7		6
Total recorded in other comprehensive income and net periodic benefit cost	$	(8)	$	(24)	$	17	$	7	$	13	$	8

The following weighted average assumptions were used to determine the Company’s obligations under the pension plans:


	U.S. Plans				Non-U.S. Plans
	2020		2019		2020		2019
Discount rate	2.58	%	3.34	%	2.84	%	3.55	%
Rate of compensation increase	4.26		4.21		3.54		3.75
Cash balance interest crediting rate	3.76		4.16		—		—

The following weighted average assumptions were used to determine the Company’s net periodic benefit cost for the pension plans:


	U.S. Plans						Non-U.S. Plans
	2020		2019		2018		2020		2019		2018
Discount rate	3.34	%	4.38	%	3.70	%	3.55	%	4.33	%	4.02	%
Expected long-term return on plan assets	5.30		5.30		5.30		3.81		4.37		4.31
Rate of compensation increase	4.21		4.31		4.42		3.68		3.63		3.58
Cash balance interest crediting rate	4.16		4.49		4.56		—		—		—

For the year ended December 31, 2020, the Company assumed an expected long-term rate of return on assets of 5.30 percent for U.S. plans and approximately 3.16 percent for Canadian plans. In developing the expected long-term rate of return assumption on plan assets, which consist mainly of U.S. and Canadian debt and equity securities, management evaluated historical rates of return achieved on plan assets and the asset allocation of the plans, input from the Company’s independent actuaries and investment consultants, and historical trends in long-term inflation rates. Projected return estimates made by such consultants are based upon broad equity and bond indices.

The discount rate reflects a rate of return on high-quality fixed income investments that match the duration of the expected benefit payments. The Company has typically used returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption. The Company elects to use a full yield curve approach in the estimation of these components of benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.

Plan Assets: The Company’s investment policy for its pension plans is to balance risk and return through diversified portfolios of fixed income securities, equity instruments, and short-term investments. Maturities for fixed income securities are managed such that sufficient liquidity exists to meet near-term benefit payment obligations. For U.S. pension plans, the weighted average target range allocation of assets was 15-25 percent in equities and 75-85 percent in fixed income inclusive of other short-term investments. The asset allocation is reviewed regularly, and portfolio investments are rebalanced to the targeted allocation when considered appropriate.

The Company’s weighted average asset allocation as of December 31, 2020, and 2019 for U.S. and non-U.S. pension plan assets is as follows:


	U.S. Plans				Non-U.S. Plans
Asset Category	2020		2019		2020		2019
Equity securities	20	%	21	%	18	%	17	%
Debt securities	79		78		58		63
Cash and other	1		1		24		20
Total	100	%	100	%	100	%	100	%

The fair values of the Company’s plan assets by asset category and level in the fair value hierarchy are as follows:


	Fair Value Measurements at December 31, 2020
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	45	$	—	$	45
International (b)		—		44		—		44
Fixed income index:
Long bond (c)		—		276		—		276
Long government bond (d)		—		69		—		69
Cash (e)		—		5		—		5
Total U.S. Plans	$	—	$	439	$	—	$	439
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	26	$	—	$	26
International (b)		—		19		—		19
Fixed income index:
Short bond (f)		—		31		—		31
Intermediate bond (g)		—		38		—		38
Long bond (h)		—		106		—		106
Other (i)		—		26		—		26
Cash (e)		3		—		—		3
Total Non-U.S. Plans	$	3	$	246	$	—	$	249


	Fair Value Measurements at December 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	43	$	—	$	43
International (b)		—		42		—		42
Fixed income index:
Long bond (c)		—		295		—		295
Long govt bond (d)		—		25		—		25
Cash (e)		—		3		—		3
Total U.S. Plans	$	—	$	408	$	—	$	408
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	22	$	—	$	22
International (b)		—		17		—		17
Fixed income index:
Intermediate bond (g)		—		52		—		52
Long bond (h)		—		95		—		95
Other (i)		—		24		—		24
Cash (e)		2		19		—		21
Total Non-U.S. Plans	$	2	$	229	$	—	$	231

(a)

This category consists of both passively and actively managed equity index funds that track the return of large capitalization U.S. equities.

(b)

This category consists of both passively and actively managed equity index funds that track an index of returns on international developed market equities.

(c)

This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income corporate securities with maturities generally exceeding 10 years.

(d)

This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income U.S. treasury securities with maturities generally exceeding 10 years.

(e)

This category represents cash or cash equivalents.

(f)

This category consists of both passively and actively managed fixed income index funds that track the return of short duration government and investment grade corporate bonds.

(g)

This category consists of both passively and actively managed fixed income index funds that track the return of intermediate duration government and investment grade corporate bonds.

(h)

This category consists of both passively and actively managed fixed income index funds that track the return of government bonds and investment grade corporate bonds.

(i)

This category mainly consists of investment products provided by insurance companies that offer returns that are subject to a minimum guarantee and mutual funds.

All significant pension plan assets are held in collective trusts by the Company’s U.S. and non-U.S. plans. The fair values of shares of collective trusts are based upon the net asset values of the funds reported by the fund managers based on quoted market prices of the underlying securities as of the balance sheet date and are considered to be Level 2 fair value measurements. This may produce a fair value measurement that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies could result in different fair value measurements at the reporting date.

In the year ended December 31, 2020, the Company made cash contributions of $1 million and $4 million to its U.S. and non-U.S. pension plans, respectively. The Company anticipates that in the year ending December 31, 2021 it will make cash contributions of $1 million and $3 million to its U.S. and non-U.S. pension plans, respectively. Cash contributions in subsequent years will depend on a number of factors including the performance of plan assets.

The following benefit payments, which reflect anticipated future service, as appropriate, are expected to be made:


(in millions)	U.S. Plans		Non-U.S. Plans
2021	$	23	$	11
2022		24		12
2023		24		13
2024		24		13
2025		24		13
Years 2026 - 2030		126		70

The Company and certain subsidiaries also maintain defined contribution plans. The Company makes matching contributions to these plans that are subject to certain vesting requirements and are based on a percentage of employee contributions. Amounts charged to expense for defined contribution plans totaled $22 million, $20 million, and $21 million in the years ended December 31, 2020, 2019, and 2018, respectively.

Postretirement Benefit Plans: The Company’s postretirement benefit plans currently are not funded. The information presented below includes plans in the U.S., Brazil, and Canada. The changes in the benefit obligations of the plans during the years ended December 31, 2020 and 2019, and the amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2020 and 2019, are as follows:


(in millions)	2020		2019
Accumulated postretirement benefit obligation
At January 1	$	69	$	64
Service cost		—		1
Interest cost		3		3
Actuarial loss (gain)		4		6
Benefits paid		(5)		(5)
Foreign currency translation		(3)		—
At December 31		68		69
Fair value of plan assets		—		—
Funded status	$	(68)	$	(69)

As of December 31, 2020, the decrease in the postretirement benefit obligation was mainly driven by favorable foreign currency translation related to the Company’s Canada and Brazil postretirement plans. As of December 31, 2019,

the increase in the postretirement benefit obligation was driven by actuarial losses, which mainly resulted from a decline in discount rates due to the fall in bond yields compared to the prior year.

Amounts recognized in the Consolidated Balance Sheets consist of:


(in millions)	2020		2019
Current liabilities	$	(4)	$	(4)
Non-current liabilities		(64)		(65)
Net liability recognized	$	(68)	$	(69)

Amounts recognized in accumulated other comprehensive loss (income), excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2020 and 2019 were as follows:


(in millions)	2020		2019
Net actuarial loss	$	17	$	14
Prior service credit		—		(2)
Net amount recognized	$	17	$	12

Components of net periodic benefit cost consisted of the following for the years ended December 31, 2020, 2019, and 2018


	Year Ended December 31,
(in millions)	2020		2019		2018
Service cost	$	—	$	1	$	1
Interest cost		3		3		3
Amortization of actuarial loss		1		—		—
Amortization of prior service credit		(2)		(2)		(2)
Net periodic benefit cost	$	2	$	2	$	2

The service cost component of net periodic benefit cost is presented within either cost of sales or operating expenses on the Consolidated Statements of Income. The interest cost and amortization of prior service credit components of net periodic benefit cost are presented as other, non-operating income on the Consolidated Statements of Income.

Total amounts recorded in other comprehensive income and net periodic benefit cost was as follows:


(in millions, pre-tax)	2020		2019		2018
Net actuarial loss (gain)	$	4	$	6	$	(3)
Amortization of prior service credit		2		2		2
Amortization of actuarial loss		(1)		—		—
Total recorded in other comprehensive income		5		8		(1)
Net periodic benefit cost		2		2		2
Total recorded in other comprehensive income and net periodic benefit cost	$	7	$	10	$	1

The following weighted average assumptions were used to determine the Company’s obligations under the postretirement plans:


	2020		2019
Discount rate	3.69	%	4.18	%

The following weighted average assumptions were used to determine the Company’s net postretirement benefit cost:


	2020		2019		2018
Discount rate	4.42	%	5.49	%	4.93	%

The discount rate reflects a rate of return on high-quality fixed-income investments that match the duration of expected benefit payments. The Company has typically used returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption.

The healthcare cost trend rates used in valuing the Company’s postretirement benefit obligations are established based upon actual healthcare trends and consultation with actuaries and benefit providers. The following assumptions were used as of December 31, 2020:


	U.S.		Canada		Brazil
2020 increase in per capita cost	5.90	%	5.83	%	7.07	%
Ultimate trend	4.50	%	4.00	%	7.07	%
Year ultimate trend reached	2028		2040		2020

The following benefit payments, which reflect anticipated future service, as appropriate, are expected to be made under the Company’s postretirement benefit plans:


(in millions)
2021	$	4
2022		4
2023		4
2024		4
2025		4
Years 2026 - 2030		19

Multi-employer Plans: The Company participates in and contributes to one multi-employer benefit plan under the terms of collective bargaining agreements that cover certain union-represented employees and retirees in the U.S. The plan covers medical and dental benefits for active hourly employees and retirees represented by the U.S. Steel Workers Union for certain U.S. locations.

The risks of participating in this multi-employer plan are different from single-employer plans. This plan receives contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements and the assets contributed by one employer may be used to fund the benefits of all employees covered within the plan.

The Company is required to make contributions to this plan as determined by the terms and conditions of the collective bargaining agreements and plan terms. For the years ended December 31, 2020, 2019, and 2018, the Company made regular contributions of $14 million, $13 million, and $12 million, respectively, to this multi-employer plan. The Company cannot currently estimate the amount of multi-employer plan contributions that will be required in the year ending December 31, 2021 and future years, but these contributions could increase due to healthcare cost trends. The collective bargaining agreements associated with this plan expire during 2021 through 2024.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Equity

12 Months Ended

Dec. 31, 2020

Equity

Equity

NOTE 11 – Equity

Preferred stock: The Company has authorized 25 million shares of $0.01 par value preferred stock, none of which were issued or outstanding at December 31, 2020 and 2019.

Treasury stock: On October 22, 2018, the Board of Directors authorized a stock repurchase program permitting the Company to purchase up to 8 million of its outstanding shares of common stock from November 5, 2018 through December 31, 2023. The parameters of the Company’s stock repurchase program are not established solely with reference to the dilutive impact of shares issued under the Company’s stock incentive plan. However, the Company expects that, over time, share repurchases will offset the dilutive impact of shares issued under the stock incentive plan.

On November 5, 2018, the Company entered into a Variable Timing Accelerated Share Repurchase (“ASR”) program with JPMorgan (“JPM”). Under the ASR program, the Company paid $455 million on November 5, 2018 and acquired 4 million shares of its common stock having an approximate value of $423 million on that date. On February 5, 2019, the Company and JPM settled the difference between the initial price and average daily volume-weighted average price (“VWAP”) less the agreed upon discount during the term of the agreement. The final VWAP was $98.04 per share, which was less than originally paid. The Company settled the difference in cash, resulting in JPM returning $63 million of the upfront payment to the Company on February 6, 2019, and lowering the total cost of repurchasing the 4 million

shares of common stock to $392 million. The Company adjusted Additional paid-in capital and Treasury stock by $32 million and $31 million, respectively, during the first quarter of 2019 for this inflow of cash.

The Company did not repurchase shares of common stock in the year ended December 31, 2020

Set forth below is a reconciliation of common stock share activity for the years ended December 31, 2020, 2019 and 2018:


(Shares of common stock, in thousands)	Issued	Held in Treasury	Outstanding
Balance at December 31, 2017	77,811	5,815	71,996
Issuance of restricted stock units as compensation	—	(100)	100
Performance shares and other share-based awards	—	(68)	68
Stock options exercised	—	(209)	209
Purchase/acquisition of treasury stock	—	5,847	(5,847)
Balance at December 31, 2018	77,811	11,285	66,526
Issuance of restricted stock units as compensation	—	(105)	105
Performance shares and other share-based awards	—	(5)	5
Stock options exercised	—	(182)	182
Purchase/acquisition of treasury stock	—	—	—
Balance at December 31, 2019	77,811	10,993	66,818
Issuance of restricted stock units as compensation	—	(69)	69
Performance shares and other share-based awards	—	(5)	5
Stock options exercised	—	(124)	124
Purchase/acquisition of treasury stock	—	—	—
Balance at December 31, 2020	77,811	10,795	67,016

Share-based payments: The following table summarizes the components of the Company’s share-based compensation expense for the years ended December 31, 2020, 2019 and 2018:


(in millions)	2020		2019		2018
Stock options:
Pre-tax compensation expense	$	4	$	3	$	5
Income tax benefit		—		—		(1)
Stock option expense, net of income taxes		4		3		4

Restricted stock units ("RSUs"):
Pre-tax compensation expense		12		10		12
Income tax benefit		(1)		(2)		(2)
RSUs, net of income taxes		11		8		10

Performance shares and other share-based awards:
Pre-tax compensation expense		7		5		4
Income tax benefit		(1)		—		—
Performance shares and other share-based compensation expense, net of income taxes		6		5		4

Total share-based compensation:
Pre-tax compensation expense		23		18		21
Income tax benefit		(2)		(2)		(3)
Total share-based compensation expense, net of income taxes	$	21	$	16	$	18

The Company has a stock incentive plan (“SIP”) administered by the People, Culture and Compensation Committee (“Compensation Committee”) of its Board of Directors that provides for the granting of stock options, restricted stock, restricted stock units, and other share-based awards to certain key employees. A maximum of 8 million shares were originally authorized for awards under the SIP. As of December 31, 2020, 2.1 million shares were available for future grants under the SIP. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the SIP.

Stock Options: Under the Company’s SIP, stock options are granted at exercise prices that equal the market value of the underlying common stock on the date of grant. The options have a 10-year term and are exercisable upon vesting, which occurs over a three-year period at the anniversary dates of the date of grant. Compensation expense is generally recognized on a straight-line basis for all awards over the employee’s vesting period or over a one-year required service period for certain retirement eligible executive level employees. The Company estimates a forfeiture rate at the time of grant and updates the estimate throughout the vesting of the stock options within the amount of compensation costs recognized in each period.

The Company granted non-qualified options to purchase 336, 247, and 215 thousand shares for the years ended December 31, 2020, 2019, and 2018, respectively. The fair value of each option grant was estimated using the Black-Scholes option-pricing model with the following assumptions:


	For the Year Ended December 31,
	2020		2019		2018
Expected life (in years)	5.5		5.5		5.5
Risk-free interest rate	1.4	%	2.5	%	2.5	%
Expected volatility	19.8	%	19.7	%	19.8	%
Expected dividend yield	2.9	%	2.7	%	1.8	%

The expected life of options represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and the Company’s historical exercise patterns. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date for the period corresponding to the expected life of the options. Expected volatility is based on historical volatilities of the Company’s common stock. Dividend yields are based on current dividend payments.

A summary of stock option transactions for the year ended December 31, 2020 is as follows:


	Number of Options (in thousands)	Weighted Average Exercise Price per Share		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2019	2,055	$	84.36	5.30	$	34
Granted	336		88.35
Exercised	(124)		47.12
Cancelled	(29)		103.57
Outstanding as of December 31, 2020	2,238	$	86.55	5.15	$	14
Exercisable as of December 31, 2020	1,709	$	84.38	4.11	$	14

For the years ended December 31, 2020, 2019 and 2018, cash received from the exercise of stock options was $6 million, $6 million, and $10 million, respectively. As of December 31, 2020, the unrecognized compensation cost related to non-vested stock options totaled $2 million, which is expected to be amortized over the weighted-average period of approximately 1.6 years.

Additional information pertaining to stock option activity is as follows:



	Year Ended December 31,
(dollars in millions, except per share)	2020		2019		2018
Weighted average grant date fair value of stock options granted (per share)	$	11.48	$	14.02	$	24.01
Total intrinsic value of stock options exercised		5		10		15

Restricted Stock Units: The Company has granted restricted stock units (“RSUs”) to certain key employees. The RSUs are subject to cliff vesting, generally after three years provided the employee remains in the service of the Company. Compensation expense is generally recognized on a straight-line basis for all awards over the employee’s vesting period or over a one-year required service period for certain retirement eligible executive level employees. The Company estimates a forfeiture rate at the time of grant and updates the estimate throughout the vesting of the RSUs within the amount of compensation costs recognized in each period. The fair value of the RSUs is determined based upon the number of shares granted and the quoted market price of the Company’s common stock at the date of the grant.

The following table summarizes RSU activity for the year:


		Weighted
	Number of	Average
	Restricted	Fair Value
(shares in thousands)	Shares	per Share
Non-vested at December 31, 2019	339	$	108.02
Granted	196		87.01
Vested	(94)		117.33
Cancelled	(23)		101.72
Non-vested at December 31, 2020	418	$	96.45

The total fair value of RSUs that vested in the years ended December 31, 2020, 2019 and 2018 was $17 million, $16 million, and $15 million, respectively.

At December 31, 2020, the total remaining unrecognized compensation cost related to RSUs was $23 million which will be amortized on a weighted-average basis over approximately 1.8 years. Recognized compensation cost related to unvested RSUs is included in Share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $23 million and $23 million at December 31, 2020 and 2019, respectively.

Performance Shares: The Company has a long-term incentive plan for senior management in the form of performance shares. Historically these performance shares vested based solely on the Company’s total shareholder return as compared to the total shareholder return of its peer group over the three-year vesting period. Beginning with the performance share grants in the year ended December 31, 2019, the vesting of the performance shares will be based on two performance metrics. Fifty percent of the performance shares awarded will vest based on the Company’s total shareholder return as compared to the total shareholder return of its peer group, and the remaining fifty percent will vest based on the calculation of the Company’s three-year average Adjusted Return on Invested Capital (“ROIC”) against an established ROIC target.

For the performance shares awarded in the first quarter of the year ended December 31, 2020, based on the Company’s total shareholder return, the number of shares that ultimately vest can range from zero to 200 percent of the awarded grant depending on the Company’s total shareholder return as compared to the total shareholder return of its peer group. The share award vesting will be calculated at the end of the three-year period and is subject to approval by management and the Compensation Committee of the Board of Directors. Compensation expense is based on the fair value of the performance shares at the grant date, established using a Monte Carlo simulation model. The total compensation expense for these awards is amortized over a three-year graded vesting schedule.

For the performance shares awarded in the first quarter of the year ended December 31, 2020, based on ROIC, the number of shares that ultimately vest can range from zero to 200 percent of the awarded grant depending on the Company’s ROIC performance against the target. The share award vesting will be calculated at the end of the three-year period and is subject to approval by management and the Compensation Committee. Compensation expense is based on the market price of the Company’s common stock on the date of the grant and the final number of shares that ultimately vest. The Company will estimate the potential share vesting at least annually to adjust the compensation expense for these awards over the vesting period to reflect the Company’s estimated ROIC performance versus the target. The total compensation expense for these awards is amortized over a three-year graded vesting schedule.

The Company awarded 81 thousand, 70 thousand, and 27 thousand performance shares in the years ended December 31, 2020, 2019 and 2018, respectively. The weighted average fair value of the shares granted during the years ended December 31, 2020, 2019 and 2018 was $94.48, $92.57, and $141.91, respectively.

The performance share awards granted in the year ended December 31, 2017 vested in the first quarter of 2020, achieving a zero percent payout of the granted performance shares. As of December 31, 2020, the performance awards granted in the year ended December 31, 2018 are estimated to pay out at zero percent. There were seven thousand shares cancelled during the year ended December 31, 2020.

As of December 31, 2020, the unrecognized compensation cost relating to these plans was $4 million, which will be amortized over the remaining requisite service periods of 1.8 years. Recognized compensation cost related to these

unvested awards is included in share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $7 million and $9 million at December 31, 2020 and 2019, respectively.

Other share-based awards under the SIP: Under the compensation agreement with the Board of Directors, $120,000 of a non-employee director’s annual retainer and 50 percent of the additional retainers paid to the Lead Director and the Chairs of committees of the Board of Directors are awarded in shares of common stock or, if a director elects to defer all or a portion of his or her common stock or cash compensation, in shares of restricted stock units. These restricted units may not be transferred until a date not less than six months after the director’s termination of service from the Board of Directors, at which time the restricted units will be settled by delivering shares of common stock with fractional shares to be paid in cash. The compensation expense relating to this plan included in the Consolidated Statements of Income was approximately $2 million for the year ended December 31, 2020 and $1 million for the years ended December 31, 2019 and 2018. At December 31, 2020, there were approximately 232 thousand restricted stock units outstanding under this plan at a carrying value of approximately $15 million.

Accumulated Other Comprehensive Loss: A summary of accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2019, and 2020, is presented below:


(in millions)	Cumulative Translation Adjustment		Deferred (Loss) Gain on Hedging Activities		Pension and Postretirement Adjustment		Unrealized (Loss) Gain on Investment		Accumulated Other Comprehensive Loss
Balance, December 31, 2017	$	(951)	$	(13)	$	(51)	$	2	$	(1,013)
Other comprehensive income (loss) before reclassification adjustments		(129)		8		(20)		—		(141)
Amount reclassified from accumulated OCI		—		6		—		—		6
Tax benefit (provision)		—		(4)		5		—		1
Net other comprehensive income (loss)		(129)		10		(15)		—		(134)
Adoption of ASU 2016-01		—		—		—		(2)		(2)
Adoption of ASU 2018-02		—		(2)		(3)		—		(5)
Other		—		(2)		(3)		(2)		(7)
Balance, December 31, 2018		(1,080)		(5)		(69)		—		(1,154)
Other comprehensive (loss) income before reclassification adjustments		(9)		(19)		11		—		(17)
Amount reclassified from accumulated OCI		—		14		—		—		14
Tax benefit (provision)		—		1		(2)		—		(1)
Net other comprehensive (loss) income		(9)		(4)		9		—		(4)
Balance, December 31, 2019	$	(1,089)	$	(9)	$	(60)	$	—	$	(1,158)
Other comprehensive loss before reclassification adjustments		(25)		5		(2)		—		(22)
Amount reclassified from accumulated OCI		—		65		—		—		65
Tax benefit (provision)		—		(19)		1		—		(18)
Net other comprehensive loss		(25)		51		(1)		—		25
Balance, December 31, 2020	$	(1,114)	$	42	$	(61)	$	—	$	(1,133)

Supplemental Information: The following table provides the computation of basic and diluted earnings per common share (“EPS”) for the periods presented.


		2020					2019					2018
		Net Income	Weighted		Per		Net Income	Weighted		Per		Net Income	Weighted		Per
		Available	Average		Share		Available	Average		Share		Available	Average		Share
(in millions, except per share amounts)		to Ingredion	Shares		Amount		to Ingredion	Shares		Amount		to Ingredion	Shares		Amount
Basic EPS	$	348	67.2	$	5.18	$	413	66.9	$	6.17	$	443	70.9	$	6.25

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards			0.4					0.5					0.9
Diluted EPS	$	348	67.6	$	5.15	$	413	67.4	$	6.13	$	443	71.8	$	6.17

Approximately 1.7 million, 1.1 million, and 0.5 million share-based awards of common stock were excluded in the years ended December 31, 2020, 2019, and 2018, respectively, from the calculation of the weighted average number of shares outstanding for diluted EPS because their effects were anti-dilutive.

Segment Information

12 Months Ended

Dec. 31, 2020

Segment Information

Segment Information

NOTE 12 – Segment Information

The Company is principally engaged in the production and sale of starches and sweeteners for a wide range of industries, and is managed geographically on a regional basis. The Company’s operations are classified into four reportable business segments: North America, South America, Asia-Pacific, and EMEA. Its North America segment includes businesses in the U.S., Mexico, and Canada. The Company’s South America segment includes businesses in Brazil, Colombia, Ecuador, and the Southern Cone of South America, which includes Argentina, Peru, Chile, and Uruguay. Its Asia-Pacific segment includes businesses in South Korea, Thailand, China, Australia, Japan, Indonesia, Singapore, the Philippines, India, Malaysia, New Zealand, and Vietnam. The Company’s EMEA segment includes businesses in Pakistan, Germany, the United Kingdom, South Africa, and Kenya. The Company does not aggregate its operating segments when determining its reportable segments. Net sales by product are not presented because to do so would be impracticable.

Presented below are the Company’s net sales to unaffiliated customers by reportable segment for the years ended December 31, 2020, 2019, and 2018.


(in millions)	2020		2019		2018
Net sales to unaffiliated customers:
North America	$	3,662	$	3,834	$	3,857
South America		919		960		988
Asia-Pacific		813		823		837
EMEA		593		592		607
Total	$	5,987	$	6,209	$	6,289

Presented below is the Company’s operating income by reportable segment for the years ended December 31, 2020, 2019, and 2018.


(in millions)		2020		2019		2018
Operating income:
North America	$	487	$	522	$	545
South America		112		96		99
Asia-Pacific		80		87		104
EMEA		102		99		116
Corporate		(122)		(99)		(97)
Subtotal		659		705		767
Restructuring/impairment charges (a)		(93)		(57)		(64)
Acquisition/integration costs		(11)		(3)		—
Brazil tax matter (b)		36		22		—
Charge for fair value markup of acquired inventory		(6)		—		—
North America storm damage		(3)		—		—
Other		—		(3)		—
Total operating income	$	582	$	664	$	703

(a)

The year ended December 31, 2020 includes $93 million of restructuring and impairment expenses, including $23 million of net restructuring related expenses as part of the Cost Smart Cost of sales program, $25 million of net restructuring related expenses as part of the Cost Smart SG&A program, and $45 million in impairment charges. The year ended December 31, 2019 includes $57 million of restructuring expenses, including $29 million of net restructuring related expenses as part of the Cost Smart Cost of sales program and $28 million of employee-related and other costs, including professional services, associated with the Cost Smart SG&A program. The year ended December 31, 2018 includes $49 million of restructuring expenses as part of the Cost Smart Cost of sales program in relation to the cessation of wet-milling at the Stockton, California manufacturing facility, $11 million of restructuring costs related to Cost Smart SG&A program, $3 million of costs related to the North America finance transformation program, and $1 million of costs related to the leaf extraction process in Brazil.

(b)

In the year ended December 31, 2019 the Company received a favorable judgment from the Federal Court of Appeals in Brazil related to certain indirect taxes collected in prior years. To account for the judgment, the Company recorded a $22 million pre-tax benefit for the favorable judgment, in accordance with ASC 450, Contingencies during the three and twelve months ended December 31, 2019. In the year ended December 31, 2020, the Company received another favorable court judgment that further clarifies the calculation of the Company's benefit, resulting in a larger indirect tax claim against the government. As a result, the Company recorded an additional $35 million pre-tax benefits during the three and twelve months ended December 31, 2020. The Company expects to be entitled to credits against its Brazilian federal tax payments in 2021 and future years. The total benefit recorded represents the Company's current estimate of the credits and interest due from the favorable decision in accordance with ASC 450, Contingencies. In addition, the Company received a second favorable ruling in Brazil reversing the taxes previously paid related to a government subsidy. The Company recorded pre-tax benefits of $1 million and tax provision benefit of $3 million related to this second ruling during the three months ended December 31, 2020.

Presented below are the Company’s total assets by reportable segment as of December 31, 2020 and 2019.


	As of December 31,
(in millions)	2020		2019
Total assets:
North America (a)	$	4,231	$	3,924
South America		818		774
Asia-Pacific		1,255		843
EMEA		554		499
Total	$	6,858	$	6,040

(a)

For purposes of presentation, North America includes Corporate assets.

Presented below are the Company’s depreciation and amortization, mechanical stores expense, and capital expenditures and mechanical stores purchases by reportable segment for the years ended December 31, 2020, 2019, and 2018.


(in millions)	2020		2019		2018
Depreciation and amortization:
North America (a)	$	147	$	146	$	180
South America		19		22		24
Asia-Pacific		32		37		27
EMEA		15		15		16
Total	$	213	$	220	$	247
Mechanical stores expense (b):
North America (a)	$	39	$	40	$	38
South America		7		10		11
Asia-Pacific		4		4		5
EMEA		4		3		3
Total	$	54	$	57	$	57
Capital expenditures and mechanical stores purchases:
North America (a)	$	243	$	226	$	232
South America		39		45		61
Asia-Pacific		46		40		39
EMEA		12		17		18
Total	$	340	$	328	$	350

(a)

For purposes of presentation, North America includes Corporate activities of depreciation, amortization, and capital expenditures, respectively.

(b)

Represents spare parts used in the production process. Such spare parts are recorded in PP&E as part of machinery and equipment until they are utilized in the manufacturing process and expensed as a period cost.

The following table presents net sales to unaffiliated customers by country of origin for the years ended December 31, 2020, 2019, and 2018:


	Net Sales
(in millions)	2020		2019		2018
U.S.	$	2,284	$	2,368	$	2,386
Mexico		984		1,075		1,067
Brazil		447		479		478
Canada		393		390		404
Korea		268		270		296
Others		1,611		1,627		1,658
Total	$	5,987	$	6,209	$	6,289

The following table presents long-lived assets (excluding intangible assets and deferred income taxes) by country as of December 31:


	Long-lived Assets
(in millions)	2020		2019
U.S.	$	1,276	$	1,239
Mexico		342		343
Canada		245		187
Brazil		202		205
Thailand		165		156
Germany		137		129
Korea		116		110
Others		359		260
Total	$	2,842	$	2,629

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies

Commitments and Contingencies

NOTE 13 – Commitments and Contingencies

In January 2019, the Company’s Brazilian subsidiary received a favorable decision from the Federal Court of Appeals in Sao Paulo, Brazil, related to certain indirect taxes collected in prior years. The Company finalized its calculation of the amount of the credits and interest due from the favorable decision, concluding that the Company could be entitled to approximately $66 million of credits spanning a period from 2005 to 2018. The Department of Federal Revenue of Brazil, however, issued an Internal Ruling in which it charged that the Company is entitled to only $22 million of the calculated indirect tax credits and interest for the period from 2005 to 2014. The Brazil National Treasury filed a motion for clarification with the Brazilian Supreme Court, asking the Court, among other things, to modify the lower court’s decision to approve the Internal Ruling, which could impact the decision in favor of the Company. To account for the judgment, the Company recorded a $22 million pre-tax benefit in the Consolidated Income Statement in Other income, in accordance with ASC 450, Contingencies for the year ended December 31, 2019.

During the year ended December 31, 2020, the Company received another favorable court judgment that clarified the calculation of the Company’s benefit, allowing the Company to claim the gross treatment within the indirect tax claim calculation and a larger indirect tax claim against the government. As a result of the decision, the Company recorded an additional $35 million pre-tax benefit in the Consolidated Income Statement in Other income for the year ended December 31, 2020, related to the open period of 2005 to 2014. The total benefit recorded represents the Company’s current estimate of the credits and interest due from the favorable decisions in accordance with ASC 450, Contingencies. The Company is awaiting final court ruling for the period of 2015 to 2018, that would allow the Company to record an additional $9 million in pre-tax benefits.

The Company expects to use the indirect tax credits of $57 million (from the period of 2005 to 2014) to offset its Brazilian federal tax payments beginning in 2021. The $57 million of future tax credits are recorded in Other assets and Prepaid expenses on the Consolidated Balance Sheets, and result in deferred income taxes of $18 million. The income taxes will be paid as and when the tax credits are utilized. The Company continues to monitor the pending decisions within the Brazilian courts that may result in changes to the calculations and receipt of the benefits.

Additionally, during the twelve months ended December 31, 2020, the Company recorded a pre-tax benefit of $1 million related to the reversal of a tax decision on a government subsidy on which the Company had previously paid taxes. The Company also recorded a $3 million tax provision benefit related to this decision.

The Company is currently subject to claims and suits arising in the ordinary course of business, including labor matters, certain environmental proceedings, and other commercial claims. The Company also routinely receives inquiries from regulators and other government authorities relating to various aspects of its business, including with respect to compliance with laws and regulations relating to the environment, and at any given time, the Company has matters at various stages of resolution with the applicable governmental authorities. The outcomes of these matters are not within the Company’s complete control and may not be known for prolonged periods of time. The Company does not believe that the results of currently known legal proceedings and inquires will be material to it. There can be no assurance, however, that such claims, suits or investigations or those arising in the future, whether taken individually or in the aggregate, will not have a material adverse effect on the Company’s financial condition or results of operations.

Supplementary Information

12 Months Ended

Dec. 31, 2020

Supplementary Information

Supplementary Information

NOTE 14 – Supplementary Information

Consolidated Balance Sheets


(in millions)	2020		2019
Accounts receivable, net:
Accounts receivable — trade	$	855	$	830
Accounts receivable — other		170		157
Allowance for doubtful accounts		(14)		(10)
Total accounts receivable, net	$	1,011	$	977
Inventories:
Finished and in process	$	584	$	565
Raw materials		236		237
Manufacturing supplies		97		59
Total inventories	$	917	$	861
Accrued liabilities:
Compensation-related costs	$	96	$	93
Income taxes payable		26		16
Current lease liabilities		46		41
Dividends payable		43		42
Accrued interest		11		15
Taxes payable other than income taxes		44		36
Other		155		138
Total accrued liabilities	$	421	$	381
Non-current liabilities:
Employees’ pension, indemnity, and postretirement		139		132
Other		88		88
Total non-current liabilities	$	227	$	220

Consolidated Statements of Income


(in millions)	2020		2019		2018
Other income, net:
Brazil tax matter	$	36	$	22	$	—
Value-added tax recovery		—		—		5
Other		(5)		(3)		5
Other income, net	$	31	$	19	$	10


(in millions)	2020		2019		2018
Financing costs, net:
Interest expense, net of amounts capitalized (a)	$	68	$	84	$	81
Debt extinguishment costs		5		—		—
Interest income		(6)		(7)		(9)
Foreign currency transaction losses		14		4		14
Financing costs, net	$	81	$	81	$	86

(a)

Interest capitalized amounted to $7 million, $5 million, and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Consolidated Statements of Cash Flow


(in millions)	2020		2019		2018
Other non-cash charges to net income:
Share-based compensation expense	$	22	$	18	$	21
Indefinite-lived asset impairment		35		—		—
Other		42		15		18
Total other non-cash charges to net income	$	99	$	33	$	39

(in millions)	2020		2019		2018
Interest paid	$	78	$	80	$	73
Income taxes paid		120		145		231

Quarterly Financial Data (Unaudited)

Summarized quarterly financial data is as follows:


(in millions, except per share amounts)	1^st QTR (a)		2^nd QTR (b)		3^rd QTR (c)		4^th QTR (d)
2020
Net sales	$	1,543	$	1,349	$	1,502	$	1,593
Gross profit		323		271		326		352
Net income attributable to Ingredion		75		66		92		115
Basic earnings per common share of Ingredion		1.12		0.98		1.37		1.71
Diluted earnings per common share of Ingredion		1.11		0.98		1.36		1.70
Per share dividends declared	$	0.63	$	0.63	$	0.64	$	0.64


(in millions, except per share amounts)	1^st QTR (e)		2^nd QTR (f)		3^rd QTR (g)		4^th QTR (h)
2019
Net sales	$	1,536	$	1,550	$	1,574	$	1,549
Gross profit		316		329		344		323
Net income attributable to Ingredion		100		105		99		109
Basic earnings per common share of Ingredion		1.50		1.57		1.48		1.63
Diluted earnings per common share of Ingredion		1.48		1.56		1.47		1.61
Per share dividends declared	$	0.625	$	0.625	$	0.63	$	0.63

(a)

In the first quarter of the year ended December 31, 2020, the Company recorded $11 million in after-tax, net restructuring costs.

(b)

In the second quarter of the year ended December 31, 2020, the Company recorded $8 million in after-tax, net restructuring costs and $2 million in after-tax, acquisition/integration costs.

(c)

In the third quarter of the year ended December 31, 2020, the Company recorded $15 million in after-tax, net restructuring cost, $6 million in after-tax, charges for other tax matters, $4 million in after-tax, acquisition/integration cost, $4 million in after-tax, charge for early extinguishment of debt, $3 million in after-tax, charge for fair value markup of acquired inventory, and $2 million in after-tax, North America storm damage cost.

(d)

In the fourth quarter of the year ended December 31, 2020, the Company recorded $40 million in after-tax, net restructuring and impairment cost, $27 million in after-tax, income for other matters, $4 million in after-tax, acquisition/integration cost, $3 million in after-tax, income for other tax matters, $1 million in after-tax, charge for fair value markup of acquired inventory, and $1 million in after-tax, North America storm damage cost.

(e)

In the first quarter of the year ended December 31, 2019, the Company recorded $3 million in after-tax, net restructuring costs and $1 million in after-tax, net acquisition/integration costs.

(f)

In the second quarter of the year ended December 31, 2019, the Company recorded $7 million in after-tax, net restructuring costs.

(g)

In the third quarter of the year ended December 31, 2019, the Company recorded $22 million in after-tax, net restructuring cost and $2 million in after-tax charges for other tax matters.

(h)

In the fourth quarter of the year ended December 31, 2019, the Company recorded $13 million in after-tax, other income related to other matters, $12 million in after-tax, net restructuring costs, and $1 million in after-tax, acquisition/integration costs.

Subsequent Events

12 Months Ended

Dec. 31, 2020

Subsequent Events (Unaudited)

Subsequent Events

NOTE 15 – Subsequent Events (Unaudited)

On February 12, 2021, the Company signed an agreement with an affiliate of Grupo Arcor, an Argentine food company, to establish a joint venture to combine manufacturing operations in Argentina in order to sell value-added ingredients to customers in Argentina, Chile and Uruguay. The joint venture will be 51% owned by an affiliate of Grupo Arcor and 49% owned by an affiliate of Ingredion. The joint venture will operate five manufacturing facilities located in the districts of Chacabuco and Baradero (Province of Buenos Aires), in Lules (Province of Tucumán), and in the Industrial Complex Arroyito (Province of Córdoba), of which the two manufacturing facilities located in Chacabuco and Baradero are being contributed by Ingredion Argentina and the remaining three manufacturing facilities are being contributed by an affiliate of Grupo Arcor. The manufacturing facilities collectively produce value-added ingredients including glucose syrups, maltose, fructose, starch, and maltodextrins, among others, that are marketed to the food, beverage, pharmaceutical and other industries. The joint venture will be managed by a jointly-appointed team of executives. Subject to the satisfaction of regulatory approvals and other closing conditions, the joint venture transaction is expected to close in the second quarter of 2021.

On February 9, 2021, the Company’s Board of Directors approved the contribution by three of Ingredion’s South American subsidiaries of their net assets to the joint venture. The Board’s approval results in held-for-sale treatment of these net assets and an impairment charge in the estimated range of $350 million to $370 million, of which $310 million related to the write-off of cumulative translation adjustment in the Consolidated Balance Sheets and $40 million to $60 million related to the write-down of the contributed net assets, consisting primarily of plant, property and equipment, including two manufacturing facilities, and related operating assets. The impairment charge is subject to finalization of ending balances and foreign exchange impacts. The impairment charge will not result in any cash expenditures. The impairment will be recorded in the Company’s Condensed Consolidated Statements of Income and Condensed Consolidated Balance Sheets as of and for the quarter ending March 31, 2021.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies

Basis of presentation

Cash and cash equivalents

Cash and cash equivalents: Cash equivalents consist of all instruments purchased with an original maturity of three months or less, and which have virtually no risk of loss in value.

Accounts receivable, net

Inventories

Inventories: Inventories are stated at the lower of cost or net realizable value. Costs are predominantly determined using the weighted average method.

Investments

Leases

Property, plant and equipment and depreciation

The following table summarizes the Company’s PP&E and accumulated depreciation as of the dates presented:


	As of December 31,
(in millions)	2020		2019
Property, plant and equipment:
Land	$	207	$	202
Buildings		802		748
Machinery and equipment		4,621		4,412
Property, plant and equipment, at cost		5,630		5,362
Accumulated depreciation		(3,175)		(3,056)
Property, plant and equipment, net	$	2,455	$	2,306

Goodwill and indefinite-lived intangible assets


	North		South		Asia-
(in millions)	America		America		Pacific		EMEA		Total
Goodwill before impairment charges	$	601	$	55	$	225	$	65	$	946
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at January 1, 2019		600		22		104		65		791
Acquisitions		7		—		—		—		7
Currency translation		—		(1)		4		—		3
Balance at December 31, 2019		607		21		108		65		801
Acquisitions		14		—		85		—		99
Currency translation		—		(4)		2		4		2
Balance at December 31, 2020	$	621	$	17	$	195	$	69	$	902

The following table summarizes the Company’s other intangible assets as of the dates presented:


	As of December 31, 2020
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	143	$	—	$	143	—
Patents		33		(2)		31	12
Customer relationships		356		(115)		241	20
Technology		103		(101)		2	9
Other		38		(11)		27	19
Total other intangible assets	$	673	$	(229)	$	444	17

	As of December 31, 2019
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	178	$	—	$	178	—
Customer relationships		333		(93)		240	20
Technology		103		(91)		12	9
Other		20		(13)		7	15
Total other intangible assets	$	634	$	(197)	$	437	17

Based on acquisitions completed through December 31, 2020, intangible asset amortization expense for the next five years is shown below.


(in millions)
Year	Amortization Expense
2021	$	20
2022		19
2023		19
2024		19
2025		18
Balance thereafter		206

Revenue recognition

Hedging instruments

Stock-based compensation

Earnings per common share

Risks and uncertainties

Recently adopted accounting standards and New accounting standards

Recently Adopted Accounting Standards

ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350)

ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326)

ASU No. 2016-02, Leases (Topic 842)

ASU No. 2017-12 and ASU 2018-16, Derivatives and Hedging (Topic 815)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies

Schedule of property plant and equipment


	As of December 31,
(in millions)	2020		2019
Property, plant and equipment:
Land	$	207	$	202
Buildings		802		748
Machinery and equipment		4,621		4,412
Property, plant and equipment, at cost		5,630		5,362
Accumulated depreciation		(3,175)		(3,056)
Property, plant and equipment, net	$	2,455	$	2,306

Schedule of goodwill


	North		South		Asia-
(in millions)	America		America		Pacific		EMEA		Total
Goodwill before impairment charges	$	601	$	55	$	225	$	65	$	946
Accumulated impairment charges		(1)		(33)		(121)		—		(155)
Balance at January 1, 2019		600		22		104		65		791
Acquisitions		7		—		—		—		7
Currency translation		—		(1)		4		—		3
Balance at December 31, 2019		607		21		108		65		801
Acquisitions		14		—		85		—		99
Currency translation		—		(4)		2		4		2
Balance at December 31, 2020	$	621	$	17	$	195	$	69	$	902

Schedule of intangible assets


	As of December 31, 2020
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	143	$	—	$	143	—
Patents		33		(2)		31	12
Customer relationships		356		(115)		241	20
Technology		103		(101)		2	9
Other		38		(11)		27	19
Total other intangible assets	$	673	$	(229)	$	444	17

	As of December 31, 2019
(in millions)	Gross		Accumulated Amortization		Net		Weighted Average Useful Life (years)
Trademarks/tradenames (indefinite-lived)	$	178	$	—	$	178	—
Customer relationships		333		(93)		240	20
Technology		103		(91)		12	9
Other		20		(13)		7	15
Total other intangible assets	$	634	$	(197)	$	437	17

Schedule of amortization expense related to intangible assets


(in millions)
Year	Amortization Expense
2021	$	20
2022		19
2023		19
2024		19
2025		18
Balance thereafter		206

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2020

Acquisitions

Summarizes the preliminary purchase price allocations for the PureCircle acquisition


(in millions)		PureCircle
Working capital (excluding cash)	$	60
Property, plant and equipment		91
Other, net		(22)
Identifiable intangible assets		68
Goodwill		85
Total fair value, net of cash		282
Less: Non-redeemable non-controlling interests		74
Total purchase price, net of cash	$	208

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2020

Revenue Recognition

Schedule of disaggregation of net sales


(in millions)	2020		2019		2018
Net sales to unaffiliated customers:
North America	$	3,662	$	3,834	$	3,857
South America		919		960		988
Asia-Pacific		813		823		837
EMEA		593		592		607
Total	$	5,987	$	6,209	$	6,289

Restructuring and Impairment Charges (Tables)

12 Months Ended

Dec. 31, 2020

Restructuring and Impairment Charges

Summary of restructuring/impairment charges

A summary of the Company’s severance accrual at December 31, 2020, is as follows (in millions):


Balance in severance accrual as of December 31, 2019	$	15
Cost Smart Cost of sales and SG&A		9
Acquisition related		1
Payments made to terminated employees		(12)
Foreign exchange translation		(1)
Balance in severance accrual as of December 31, 2020	$	12

Summary of assets classified as held for sale reflected in balance sheet


(in millions)		December 31, 2020		December 31, 2019
Other assets	$	8	$	—

Financial Instruments, Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2020

Financial Instruments, Derivatives and Hedging Activities

Schedule of cash flow hedges included in AOCI


Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) included in AOCI as of December 31,
(in millions)	2020		2019
Commodity contracts, net of income tax effect of $16 and $5, respectively	$	47	$	(11)
Foreign currency contracts, net of income tax effect of $— and $1, respectively		(1)		3
Interest rate contracts, net of income tax effect of $1 and $ —, respectively		(4)		(1)
Total	$	42	$	(9)

Schedule of location and amount of assets and liabilities reported in balance sheet


	Fair Value of Hedging Instruments as of December 31, 2020
	Designated Hedging Instruments (in millions)								Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total			Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total
Accounts receivable, net	$	50	$	7	$	—	$	57	$	3	$	4	$	—	$	7
Other assets		4		—		—		4		—		1		—		1
Assets		54		7		—		61		3		5		—		8
Accounts payable and accrued liabilities		4		12		—		16		1		8		—		9
Non-current liabilities		2		—		—		2		—		2		—		2
Liabilities		6		12		—		18		1		10		—		11
Net (Liabilities)/Assets	$	48	$	(5)	$	—	$	43	$	2	$	(5)	$	—	$	(3)


	Fair Value of Hedging Instruments as of December 31, 2019
	Designated Hedging Instruments (in millions)								Non-Designated Hedging Instruments (in millions)
Balance Sheet Location		Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total			Commodity Contracts		Foreign Currency Contracts		Interest Rate Contracts	Total
Accounts receivable, net	$	5	$	7	$	—	$	12	$	2	$	4	$	—	$	6
Other assets		1		3		1		5		—		1		—		1
Assets		6		10		1		17		2		5		—		7
Accounts payable and accrued liabilities		13		4		—		17		1		8		—		9
Non-current liabilities		4		4		—		8		—		2		—		2
Liabilities		17		8		—		25		1		10		—		11
Net (Liabilities)/Assets	$	(11)	$	2	$	1	$	(8)	$	1	$	(5)	$	—	$	(4)

Schedule of fair value hedges


Line item in the statement of financial position in which the hedged item is included (in millions)	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
Balance sheet date as of	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Interest Rate Contracts:
Long-Term Debt	$	—	$	(201)	$	—	$	(1)

Schedule of amount of gains and losses recognized in OCI and location and income statement location


Derivatives in Cash Flow Hedging Relationships	Gains (Losses) Recognized in OCI on Derivatives						Income Statement	Gains (Losses) Reclassified from AOCI into Income
(in millions)	Year Ended December 31,						Location	Year Ended December 31,
	2020		2019		2018			2020		2019		2018
Commodity contracts	$	17	$	(24)	$	8	Cost of sales	$	(62)	$	(12)	$	(6)
Foreign currency contracts		(7)		5		—	Net sales/cost of sales		(2)		—		1
Interest rate contracts		(5)		—		—	Financing costs, net		(1)		(2)		(1)
Total	$	5	$	(19)	$	8		$	(65)	$	(14)	$	(6)

Schedule of location and amount of gain (loss) recognized in income

Derivatives in Fair Value Hedging Relationships

Income Statement Location of Derivatives Designated as

Gains (Losses) Recognized in Income

Income Statement Location

Gains (Losses) Recognized in Income

(in millions)

Hedging Instruments

Year Ended December 31,

of Hedged Items

Year Ended December 31,

2020

2019

2018

2020

2019

2018

Interest rate contracts

Financing costs, net

(1)

(2)

Financing costs, net

(2)

Schedule of fair value of financial instruments and derivatives


	As of December 31, 2020								As of December 31, 2019
(in millions)	Total		Level 1 (a)		Level 2 (b)		Level 3 (c)		Total		Level 1 (a)		Level 2 (b)		Level 3 (c)
Available for sale securities	$	11	$	11	$	—	$	—	$	13	$	13	$	—	$	—
Derivative assets		69		53		16		—		24		7		17		—
Derivative liabilities		29		3		26		—		36		5		31		—
Long-term debt		1,751		—		1,751		—		1,751		—		1,751		—

(a)

Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b)

(c)

Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2020

Financing Arrangements

Schedule of debt


	December 31, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
(in millions)	Amount		Value		Amount		Value
2.900% senior notes due June 1, 2030	$	594	$	596	$	—	$	—
3.200% senior notes due October 1, 2026		497		500		497		491
3.900% senior notes due June 1, 2050		390		395		—		—
4.625% senior notes due November 1, 2020		—		—		400		399
6.625% senior notes due April 15, 2037		253		246		253		246
5.620% senior notes due March 25, 2020		—		—		200		200
Term loan credit agreement due April 12, 2021		—		—		405		405
Other long-term borrowings		14		14		—		—
Revolving credit facility		—		—		10		10
Fair value adjustment related to hedged fixed rate debt instrument		—		—		1		—
Total long-term debt		1,748		1,751		1,766		1,751
Term loan credit agreement due April 12, 2021		380		380		—		—
Other short-term borrowings		58		58		82		82
Total short-term borrowings		438		438		82		82
Total debt	$	2,186	$	2,189	$	1,848	$	1,833

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases

Summary of components of lease expense


Lease Cost	Year Ended December 31,		Year Ended December 31,
(in millions)	2020		2019
Operating lease cost	$	58	$	55
Variable operating lease cost		29		24
Short term lease cost		4		3
Lease cost	$	91	$	82

Reconciliation of future undiscounted cash flows to the operating lease liabilities and the related ROU assets


Operating Leases	As of
(in millions)	December 31, 2020
2021	$	51
2022		43
2023		33
2024		23
2025		15
Thereafter		37
Total future lease payments		202
Less imputed interest		20
Present value of future lease payments		182
Less current lease liabilities		46
Non-current operating lease liabilities	$	136
Operating lease assets	$	173

Summary of other lease information


Other Information	Year Ended December 31,			Year Ended December 31,
($ in millions)	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	60		$	55
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	76		$	212
	As of			As of
	December 31, 2020			December 31, 2019
Weighted average remaining lease term:
Operating leases		5.5 years			5.5 years
Weighted average discount rate:
Operating leases		4.9	%		5.7	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of income before income taxes


	Year Ended December 31,
(in millions)	2020		2019		2018
Income (loss) before income taxes:
U.S.	$	(15)	$	74	$	121
Foreign		521		508		500
Total income before income taxes		506		582		621
Provision for income taxes:
Current tax expense:
U.S. federal		1		6		17
State and local		2		2		1
Foreign		156		147		172
Total current tax expense		159		155		190
Deferred tax expense (benefit):
U.S. federal		(18)		(8)		(14)
State and local		(1)		—		(2)
Foreign		12		11		(7)
Total deferred tax expense (benefit)		(7)		3		(23)
Total provision for income taxes	$	152	$	158	$	167

Schedule of tax effects of temporary differences between financial reporting basis and tax basis of assets and liabilities


	As of December 31,
(in millions)	2020		2019
Deferred tax assets attributable to:
Employee benefit accruals	$	20	$	23
Pensions and postretirement plans		21		22
Lease liabilities		44		39
Derivative contracts		—		2
Other		60		46
Net operating loss carryforwards		32		24
Foreign tax credit carryforwards		5		1
Total deferred tax assets		182		157
Valuation allowances		(30)		(29)
Total deferred tax assets (net of valuation allowance)		152		128
Deferred tax liabilities attributable to:
Property, plant and equipment		173		175
Identified intangibles		46		41
Right-of-use lease assets		42		37
Foreign withholding and state taxes on unremitted earnings		31		32
Goodwill		20		17
Brazilian indirect tax credits		18		8
Derivative contracts		16		—
Total deferred tax liabilities		346		310
Net deferred tax liabilities	$	194	$	182

Schedule of reconciliation of US federal statutory tax rate to effective tax rate


	Year Ended December 31,
	2020		2019		2018
Provision for tax at U.S. statutory rate	21.0	%	21.0	%	21.0	%
Tax rate difference on foreign income	7.9		5.8		5.2
Net impact of tax benefit of intercompany financings	(0.8)		(1.2)		(0.8)
Net impact of global intangible low-taxed income (“GILTI”)	(1.0)		1.2		1.0
Net impact of U.S. foreign tax credits	1.6		1.0		0.5
Net impact of valuation allowance in Argentina	(0.6)		0.3		1.0
Other items, net	1.9		(1.0)		(1.0)
Provision at effective tax rate	30.0	%	27.1	%	26.9	%

Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest and penalties


	Year Ended December 31,
(in millions)	2020		2019
Balance at January 1	$	22	$	30
Additions for tax positions related to prior years		33		—
Reductions related to a lapse in the statute of limitations		(9)		(8)
Balance at December 31	$	46	$	22

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Pension Plan

Pension and postretirement benefit plans

Schedule of funded status


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Benefit obligation
At January 1	$	387	$	357	$	254	$	223
Service cost		5		5		4		3
Interest cost		11		14		10		10
Benefits paid		(23)		(28)		(12)		(11)
Actuarial loss (gain)		29		39		14		24
Curtailment/settlement/amendments		—		—		—		(2)
Foreign currency translation		—		—		5		7
Benefit obligation at December 31	$	409	$	387	$	275	$	254

Fair value of plan assets
At January 1	$	408	$	353	$	231	$	207
Actual return on plan assets		53		82		22		24
Employer contributions		1		1		4		7
Benefits paid		(23)		(28)		(12)		(11)
Plan settlements		—		—		—		(3)
Foreign currency translation		—		—		4		7
Fair value of plan assets at December 31	$	439	$	408	$	249	$	231

Funded status	$	30	$	21	$	(26)	$	(23)

Schedule of amounts recognized in the consolidated balance sheets


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Non-current asset	$	41	$	32	$	36	$	31
Current liabilities		(1)		(1)		(1)		(2)
Non-current liabilities		(10)		(10)		(61)		(52)
Net asset (liability) recognized	$	30	$	21	$	(26)	$	(23)

Schedule of amounts recognized in accumulated other comprehensive loss


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Net actuarial loss	$	12	$	15	$	61	$	62
Transition obligation		—		—		1		1
Prior service credit		(5)		(6)		—		—
Net amount recognized	$	7	$	9	$	62	$	63

Schedule of plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets


	U.S. Plans				Non-U.S. Plans
(in millions)	2020		2019		2020		2019
Projected benefit obligation	$	(11)	$	(11)	$	(81)	$	(56)
Accumulated benefit obligation		(10)		(10)		(70)		(45)
Fair value of plan assets		—		—		19		2

Components of net periodic benefit cost


	Year Ended December 31,
	U.S. Plans						Non-U.S. Plans
(in millions)	2020		2019		2018		2020		2019		2018
Service cost	$	5	$	5	$	6	$	4	$	3	$	3
Interest cost		11		14		13		10		10		10
Expected return on plan assets		(21)		(18)		(21)		(8)		(8)		(9)
Amortization of actuarial loss		—		1		—		2		2		2
Amortization of prior service credit		(1)		(1)		—		—		—		—
Net periodic benefit cost	$	(6)	$	1	$	(2)	$	8	$	7	$	6

Schedule of amounts recorded in other comprehensive income and net periodic benefit cost


(in millions, pre-tax)	U.S. Plans						Non-U.S. Plans
	2020		2019		2018		2020		2019		2018
Net actuarial (gain) loss	$	(3)	$	(25)	$	19	$	1	$	7	$	4
Prior service cost		—		—		—		—		1		—
Amortization of actuarial loss		—		(1)		—		(2)		(2)		(2)
Amortization of prior service credit		1		1		—		—		—		—
Total recorded in other comprehensive income		(2)		(25)		19		(1)		6		2
Net periodic benefit cost		(6)		1		(2)		8		7		6
Total recorded in other comprehensive income and net periodic benefit cost	$	(8)	$	(24)	$	17	$	7	$	13	$	8

Schedule of weighted average assumptions used to determine the company's obligations


	U.S. Plans				Non-U.S. Plans
	2020		2019		2020		2019
Discount rate	2.58	%	3.34	%	2.84	%	3.55	%
Rate of compensation increase	4.26		4.21		3.54		3.75
Cash balance interest crediting rate	3.76		4.16		—		—

Schedule of weighted average assumptions used to determine the company's net periodic benefit cost


	U.S. Plans						Non-U.S. Plans
	2020		2019		2018		2020		2019		2018
Discount rate	3.34	%	4.38	%	3.70	%	3.55	%	4.33	%	4.02	%
Expected long-term return on plan assets	5.30		5.30		5.30		3.81		4.37		4.31
Rate of compensation increase	4.21		4.31		4.42		3.68		3.63		3.58
Cash balance interest crediting rate	4.16		4.49		4.56		—		—		—

Schedule of weighted average asset allocation


	U.S. Plans				Non-U.S. Plans
Asset Category	2020		2019		2020		2019
Equity securities	20	%	21	%	18	%	17	%
Debt securities	79		78		58		63
Cash and other	1		1		24		20
Total	100	%	100	%	100	%	100	%

Schedule of fair values of the company's plan assets, by asset category and level


	Fair Value Measurements at December 31, 2020
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	45	$	—	$	45
International (b)		—		44		—		44
Fixed income index:
Long bond (c)		—		276		—		276
Long government bond (d)		—		69		—		69
Cash (e)		—		5		—		5
Total U.S. Plans	$	—	$	439	$	—	$	439
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	26	$	—	$	26
International (b)		—		19		—		19
Fixed income index:
Short bond (f)		—		31		—		31
Intermediate bond (g)		—		38		—		38
Long bond (h)		—		106		—		106
Other (i)		—		26		—		26
Cash (e)		3		—		—		3
Total Non-U.S. Plans	$	3	$	246	$	—	$	249


	Fair Value Measurements at December 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total
U.S. Plans:
Equity index:
U.S. (a)	$	—	$	43	$	—	$	43
International (b)		—		42		—		42
Fixed income index:
Long bond (c)		—		295		—		295
Long govt bond (d)		—		25		—		25
Cash (e)		—		3		—		3
Total U.S. Plans	$	—	$	408	$	—	$	408
Non-U.S. Plans:
Equity index:
U.S. (a)	$	—	$	22	$	—	$	22
International (b)		—		17		—		17
Fixed income index:
Intermediate bond (g)		—		52		—		52
Long bond (h)		—		95		—		95
Other (i)		—		24		—		24
Cash (e)		2		19		—		21
Total Non-U.S. Plans	$	2	$	229	$	—	$	231

(a)

This category consists of both passively and actively managed equity index funds that track the return of large capitalization U.S. equities.

(b)

This category consists of both passively and actively managed equity index funds that track an index of returns on international developed market equities.

(c)

This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income corporate securities with maturities generally exceeding 10 years.

(d)

(e)

This category represents cash or cash equivalents.

(f)

This category consists of both passively and actively managed fixed income index funds that track the return of short duration government and investment grade corporate bonds.

(g)

This category consists of both passively and actively managed fixed income index funds that track the return of intermediate duration government and investment grade corporate bonds.

(h)

This category consists of both passively and actively managed fixed income index funds that track the return of government bonds and investment grade corporate bonds.

(i)

This category mainly consists of investment products provided by insurance companies that offer returns that are subject to a minimum guarantee and mutual funds.

Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made


(in millions)	U.S. Plans		Non-U.S. Plans
2021	$	23	$	11
2022		24		12
2023		24		13
2024		24		13
2025		24		13
Years 2026 - 2030		126		70

Postemployment Retirement Benefits

Pension and postretirement benefit plans

Schedule of funded status


(in millions)	2020		2019
Accumulated postretirement benefit obligation
At January 1	$	69	$	64
Service cost		—		1
Interest cost		3		3
Actuarial loss (gain)		4		6
Benefits paid		(5)		(5)
Foreign currency translation		(3)		—
At December 31		68		69
Fair value of plan assets		—		—
Funded status	$	(68)	$	(69)

Schedule of amounts recognized in the consolidated balance sheets


(in millions)	2020		2019
Current liabilities	$	(4)	$	(4)
Non-current liabilities		(64)		(65)
Net liability recognized	$	(68)	$	(69)

Schedule of amounts recognized in accumulated other comprehensive loss


(in millions)	2020		2019
Net actuarial loss	$	17	$	14
Prior service credit		—		(2)
Net amount recognized	$	17	$	12

Components of net periodic benefit cost


	Year Ended December 31,
(in millions)	2020		2019		2018
Service cost	$	—	$	1	$	1
Interest cost		3		3		3
Amortization of actuarial loss		1		—		—
Amortization of prior service credit		(2)		(2)		(2)
Net periodic benefit cost	$	2	$	2	$	2

Schedule of amounts recorded in other comprehensive income and net periodic benefit cost


(in millions, pre-tax)	2020		2019		2018
Net actuarial loss (gain)	$	4	$	6	$	(3)
Amortization of prior service credit		2		2		2
Amortization of actuarial loss		(1)		—		—
Total recorded in other comprehensive income		5		8		(1)
Net periodic benefit cost		2		2		2
Total recorded in other comprehensive income and net periodic benefit cost	$	7	$	10	$	1

Schedule of weighted average assumptions used to determine the company's obligations


	2020		2019
Discount rate	3.69	%	4.18	%

Schedule of weighted average assumptions used to determine the company's net periodic benefit cost


	2020		2019		2018
Discount rate	4.42	%	5.49	%	4.93	%

Schedule of assumptions made in measuring the company's postretirement benefit obligation


	U.S.		Canada		Brazil
2020 increase in per capita cost	5.90	%	5.83	%	7.07	%
Ultimate trend	4.50	%	4.00	%	7.07	%
Year ultimate trend reached	2028		2040		2020

Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made


(in millions)
2021	$	4
2022		4
2023		4
2024		4
2025		4
Years 2026 - 2030		19

Equity (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of reconciliation of common stock share activity


(Shares of common stock, in thousands)	Issued	Held in Treasury	Outstanding
Balance at December 31, 2017	77,811	5,815	71,996
Issuance of restricted stock units as compensation	—	(100)	100
Performance shares and other share-based awards	—	(68)	68
Stock options exercised	—	(209)	209
Purchase/acquisition of treasury stock	—	5,847	(5,847)
Balance at December 31, 2018	77,811	11,285	66,526
Issuance of restricted stock units as compensation	—	(105)	105
Performance shares and other share-based awards	—	(5)	5
Stock options exercised	—	(182)	182
Purchase/acquisition of treasury stock	—	—	—
Balance at December 31, 2019	77,811	10,993	66,818
Issuance of restricted stock units as compensation	—	(69)	69
Performance shares and other share-based awards	—	(5)	5
Stock options exercised	—	(124)	124
Purchase/acquisition of treasury stock	—	—	—
Balance at December 31, 2020	77,811	10,795	67,016

Schedule of stock based compensation expense


(in millions)	2020		2019		2018
Stock options:
Pre-tax compensation expense	$	4	$	3	$	5
Income tax benefit		—		—		(1)
Stock option expense, net of income taxes		4		3		4

Restricted stock units ("RSUs"):
Pre-tax compensation expense		12		10		12
Income tax benefit		(1)		(2)		(2)
RSUs, net of income taxes		11		8		10

Performance shares and other share-based awards:
Pre-tax compensation expense		7		5		4
Income tax benefit		(1)		—		—
Performance shares and other share-based compensation expense, net of income taxes		6		5		4

Total share-based compensation:
Pre-tax compensation expense		23		18		21
Income tax benefit		(2)		(2)		(3)
Total share-based compensation expense, net of income taxes	$	21	$	16	$	18

Schedule of valuation assumptions for stock options


	For the Year Ended December 31,
	2020		2019		2018
Expected life (in years)	5.5		5.5		5.5
Risk-free interest rate	1.4	%	2.5	%	2.5	%
Expected volatility	19.8	%	19.7	%	19.8	%
Expected dividend yield	2.9	%	2.7	%	1.8	%

Schedule of stock option transactions


	Number of Options (in thousands)	Weighted Average Exercise Price per Share		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2019	2,055	$	84.36	5.30	$	34
Granted	336		88.35
Exercised	(124)		47.12
Cancelled	(29)		103.57
Outstanding as of December 31, 2020	2,238	$	86.55	5.15	$	14
Exercisable as of December 31, 2020	1,709	$	84.38	4.11	$	14

Schedule of additional information pertaining to stock option activity



	Year Ended December 31,
(dollars in millions, except per share)	2020		2019		2018
Weighted average grant date fair value of stock options granted (per share)	$	11.48	$	14.02	$	24.01
Total intrinsic value of stock options exercised		5		10		15

Summary of net changes in accumulated other comprehensive loss


(in millions)	Cumulative Translation Adjustment		Deferred (Loss) Gain on Hedging Activities		Pension and Postretirement Adjustment		Unrealized (Loss) Gain on Investment		Accumulated Other Comprehensive Loss
Balance, December 31, 2017	$	(951)	$	(13)	$	(51)	$	2	$	(1,013)
Other comprehensive income (loss) before reclassification adjustments		(129)		8		(20)		—		(141)
Amount reclassified from accumulated OCI		—		6		—		—		6
Tax benefit (provision)		—		(4)		5		—		1
Net other comprehensive income (loss)		(129)		10		(15)		—		(134)
Adoption of ASU 2016-01		—		—		—		(2)		(2)
Adoption of ASU 2018-02		—		(2)		(3)		—		(5)
Other		—		(2)		(3)		(2)		(7)
Balance, December 31, 2018		(1,080)		(5)		(69)		—		(1,154)
Other comprehensive (loss) income before reclassification adjustments		(9)		(19)		11		—		(17)
Amount reclassified from accumulated OCI		—		14		—		—		14
Tax benefit (provision)		—		1		(2)		—		(1)
Net other comprehensive (loss) income		(9)		(4)		9		—		(4)
Balance, December 31, 2019	$	(1,089)	$	(9)	$	(60)	$	—	$	(1,158)
Other comprehensive loss before reclassification adjustments		(25)		5		(2)		—		(22)
Amount reclassified from accumulated OCI		—		65		—		—		65
Tax benefit (provision)		—		(19)		1		—		(18)
Net other comprehensive loss		(25)		51		(1)		—		25
Balance, December 31, 2020	$	(1,114)	$	42	$	(61)	$	—	$	(1,133)

Schedule of basic and diluted earnings per common share


		2020					2019					2018
		Net Income	Weighted		Per		Net Income	Weighted		Per		Net Income	Weighted		Per
		Available	Average		Share		Available	Average		Share		Available	Average		Share
(in millions, except per share amounts)		to Ingredion	Shares		Amount		to Ingredion	Shares		Amount		to Ingredion	Shares		Amount
Basic EPS	$	348	67.2	$	5.18	$	413	66.9	$	6.17	$	443	70.9	$	6.25

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards			0.4					0.5					0.9
Diluted EPS	$	348	67.6	$	5.15	$	413	67.4	$	6.13	$	443	71.8	$	6.17

Restricted stock units (RSUs) | Employee

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of restricted unit activity


		Weighted
	Number of	Average
	Restricted	Fair Value
(shares in thousands)	Shares	per Share
Non-vested at December 31, 2019	339	$	108.02
Granted	196		87.01
Vested	(94)		117.33
Cancelled	(23)		101.72
Non-vested at December 31, 2020	418	$	96.45

Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Information

Schedule of segment reporting of net sales, operating income and total assets


(in millions)	2020		2019		2018
Net sales to unaffiliated customers:
North America	$	3,662	$	3,834	$	3,857
South America		919		960		988
Asia-Pacific		813		823		837
EMEA		593		592		607
Total	$	5,987	$	6,209	$	6,289

Presented below is the Company’s operating income by reportable segment for the years ended December 31, 2020, 2019, and 2018.


(in millions)		2020		2019		2018
Operating income:
North America	$	487	$	522	$	545
South America		112		96		99
Asia-Pacific		80		87		104
EMEA		102		99		116
Corporate		(122)		(99)		(97)
Subtotal		659		705		767
Restructuring/impairment charges (a)		(93)		(57)		(64)
Acquisition/integration costs		(11)		(3)		—
Brazil tax matter (b)		36		22		—
Charge for fair value markup of acquired inventory		(6)		—		—
North America storm damage		(3)		—		—
Other		—		(3)		—
Total operating income	$	582	$	664	$	703

(a)

(b)

Presented below are the Company’s total assets by reportable segment as of December 31, 2020 and 2019.


	As of December 31,
(in millions)	2020		2019
Total assets:
North America (a)	$	4,231	$	3,924
South America		818		774
Asia-Pacific		1,255		843
EMEA		554		499
Total	$	6,858	$	6,040

(a)

For purposes of presentation, North America includes Corporate assets.


(in millions)	2020		2019		2018
Depreciation and amortization:
North America (a)	$	147	$	146	$	180
South America		19		22		24
Asia-Pacific		32		37		27
EMEA		15		15		16
Total	$	213	$	220	$	247
Mechanical stores expense (b):
North America (a)	$	39	$	40	$	38
South America		7		10		11
Asia-Pacific		4		4		5
EMEA		4		3		3
Total	$	54	$	57	$	57
Capital expenditures and mechanical stores purchases:
North America (a)	$	243	$	226	$	232
South America		39		45		61
Asia-Pacific		46		40		39
EMEA		12		17		18
Total	$	340	$	328	$	350

(a)

For purposes of presentation, North America includes Corporate activities of depreciation, amortization, and capital expenditures, respectively.

(b)

Schedule of net sales to unaffiliated customers by country of origin


	Net Sales
(in millions)	2020		2019		2018
U.S.	$	2,284	$	2,368	$	2,386
Mexico		984		1,075		1,067
Brazil		447		479		478
Canada		393		390		404
Korea		268		270		296
Others		1,611		1,627		1,658
Total	$	5,987	$	6,209	$	6,289

Schedule of long-lived assets (excluding intangible assets) by country


	Long-lived Assets
(in millions)	2020		2019
U.S.	$	1,276	$	1,239
Mexico		342		343
Canada		245		187
Brazil		202		205
Thailand		165		156
Germany		137		129
Korea		116		110
Others		359		260
Total	$	2,842	$	2,629

Supplementary Information (Tables)

12 Months Ended

Dec. 31, 2020

Supplementary Information

Balance Sheets - supplementary information


(in millions)	2020		2019
Accounts receivable, net:
Accounts receivable — trade	$	855	$	830
Accounts receivable — other		170		157
Allowance for doubtful accounts		(14)		(10)
Total accounts receivable, net	$	1,011	$	977
Inventories:
Finished and in process	$	584	$	565
Raw materials		236		237
Manufacturing supplies		97		59
Total inventories	$	917	$	861
Accrued liabilities:
Compensation-related costs	$	96	$	93
Income taxes payable		26		16
Current lease liabilities		46		41
Dividends payable		43		42
Accrued interest		11		15
Taxes payable other than income taxes		44		36
Other		155		138
Total accrued liabilities	$	421	$	381
Non-current liabilities:
Employees’ pension, indemnity, and postretirement		139		132
Other		88		88
Total non-current liabilities	$	227	$	220

Statements of Income - supplementary information


(in millions)	2020		2019		2018
Other income, net:
Brazil tax matter	$	36	$	22	$	—
Value-added tax recovery		—		—		5
Other		(5)		(3)		5
Other income, net	$	31	$	19	$	10


(in millions)	2020		2019		2018
Financing costs, net:
Interest expense, net of amounts capitalized (a)	$	68	$	84	$	81
Debt extinguishment costs		5		—		—
Interest income		(6)		(7)		(9)
Foreign currency transaction losses		14		4		14
Financing costs, net	$	81	$	81	$	86

(a)

Interest capitalized amounted to $7 million, $5 million, and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Statements of Cash Flow - supplementary information


(in millions)	2020		2019		2018
Other non-cash charges to net income:
Share-based compensation expense	$	22	$	18	$	21
Indefinite-lived asset impairment		35		—		—
Other		42		15		18
Total other non-cash charges to net income	$	99	$	33	$	39

(in millions)	2020		2019		2018
Interest paid	$	78	$	80	$	73
Income taxes paid		120		145		231

Schedule of quarterly financial data


(in millions, except per share amounts)	1^st QTR (a)		2^nd QTR (b)		3^rd QTR (c)		4^th QTR (d)
2020
Net sales	$	1,543	$	1,349	$	1,502	$	1,593
Gross profit		323		271		326		352
Net income attributable to Ingredion		75		66		92		115
Basic earnings per common share of Ingredion		1.12		0.98		1.37		1.71
Diluted earnings per common share of Ingredion		1.11		0.98		1.36		1.70
Per share dividends declared	$	0.63	$	0.63	$	0.64	$	0.64


(in millions, except per share amounts)	1^st QTR (e)		2^nd QTR (f)		3^rd QTR (g)		4^th QTR (h)
2019
Net sales	$	1,536	$	1,550	$	1,574	$	1,549
Gross profit		316		329		344		323
Net income attributable to Ingredion		100		105		99		109
Basic earnings per common share of Ingredion		1.50		1.57		1.48		1.63
Diluted earnings per common share of Ingredion		1.48		1.56		1.47		1.61
Per share dividends declared	$	0.625	$	0.625	$	0.63	$	0.63

(a)

In the first quarter of the year ended December 31, 2020, the Company recorded $11 million in after-tax, net restructuring costs.

(b)

In the second quarter of the year ended December 31, 2020, the Company recorded $8 million in after-tax, net restructuring costs and $2 million in after-tax, acquisition/integration costs.

(c)

(d)

(e)

In the first quarter of the year ended December 31, 2019, the Company recorded $3 million in after-tax, net restructuring costs and $1 million in after-tax, net acquisition/integration costs.

(f)

In the second quarter of the year ended December 31, 2019, the Company recorded $7 million in after-tax, net restructuring costs.

(g)

In the third quarter of the year ended December 31, 2019, the Company recorded $22 million in after-tax, net restructuring cost and $2 million in after-tax charges for other tax matters.

(h)

Summary of Significant Accounting Policies - Basis of presentation (Details)	Jun. 30, 2018
Argentina \| Minimum
Currency
Three-year cumulative inflation rate as a percent	100.00%

Summary of Significant Accounting Policies - Property, plant and equipment and depreciation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, plant and equipment and depreciation
Depreciation expense	$ 183	$ 191	$ 217
Building \| Minimum
Property, plant and equipment and depreciation
Useful life	25 years
Building \| Maximum
Property, plant and equipment and depreciation
Useful life	50 years
Other Capitalized Property Plant and Equipment \| Minimum
Property, plant and equipment and depreciation
Useful life	2 years
Other Capitalized Property Plant and Equipment \| Maximum
Property, plant and equipment and depreciation
Useful life	25 years

Summary of Significant Accounting Standards and Policies - PP&E and accumulated depreciation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, plant and equipment and depreciation
PP&E impairment	$ 0
Property, plant and equipment, at cost	5,630	$ 5,362
Accumulated depreciation	(3,175)	(3,056)
Property, plant and equipment, net	2,455	2,306
Land
Property, plant and equipment and depreciation
Property, plant and equipment, at cost	207	202
Building
Property, plant and equipment and depreciation
Property, plant and equipment, at cost	802	748
Machinery and Equipment
Property, plant and equipment and depreciation
Property, plant and equipment, at cost	$ 4,621	$ 4,412

Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and intangible assets
Goodwill	$ 902	$ 801	$ 791
Other intangible assets, net	$ 444	$ 437

Summary of Significant Accounting Standards and Policies - Goodwill and accumulated impairment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Carrying value of goodwill
Goodwill before impairment charges			$ 946
Accumulated impairment charges			(155)
Balance at the beginning of the period	$ 801	$ 791
Acquisitions	99	7
Currency translation	2	3
Balance at the end of the period	902	801
North America
Carrying value of goodwill
Goodwill before impairment charges			601
Accumulated impairment charges			(1)
Balance at the beginning of the period	607	600
Acquisitions	14	7
Balance at the end of the period	621	607
South America
Carrying value of goodwill
Goodwill before impairment charges			55
Accumulated impairment charges			(33)
Balance at the beginning of the period	21	22
Currency translation	(4)	(1)
Balance at the end of the period	17	21
Asia-Pacific
Carrying value of goodwill
Goodwill before impairment charges			225
Accumulated impairment charges			(121)
Balance at the beginning of the period	108	104
Acquisitions	85
Currency translation	2	4
Balance at the end of the period	195	108
EMEA
Carrying value of goodwill
Goodwill before impairment charges			$ 65
Balance at the beginning of the period	65	65
Currency translation	4
Balance at the end of the period	$ 69	$ 65

Summary of Significant Accounting Standards and Policies - Intangible assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Gross
Total other intangible assets, Gross	$ 673	$ 634
Accumulated Amortization	(229)	(197)
Net
Total other intangible assets, Net	$ 444	$ 437
Weighted Average Useful Life (years)	17 years	17 years
Patents
Gross
Finite-lived intangible assets, Gross	$ 33
Accumulated Amortization	(2)
Net
Finite-Lived Intangible Assets, Net, Total	$ 31
Weighted Average Useful Life (years)	12 years
Customer relationships
Gross
Finite-lived intangible assets, Gross	$ 356	$ 333
Accumulated Amortization	(115)	(93)
Net
Finite-Lived Intangible Assets, Net, Total	$ 241	$ 240
Weighted Average Useful Life (years)	20 years	20 years
Technology
Gross
Finite-lived intangible assets, Gross	$ 103	$ 103
Accumulated Amortization	(101)	(91)
Net
Finite-Lived Intangible Assets, Net, Total	$ 2	$ 12
Weighted Average Useful Life (years)	9 years	9 years
Other intangible asset
Gross
Finite-lived intangible assets, Gross	$ 38	$ 20
Accumulated Amortization	(11)	(13)
Net
Finite-Lived Intangible Assets, Net, Total	$ 27	$ 7
Weighted Average Useful Life (years)	19 years	15 years
Trademarks/tradenames
Gross
Indefinite-lived intangible assets	$ 143	$ 178
Net
Indefinite-lived intangible assets, Net	$ 143	$ 178

Summary of Significant Accounting Policies - Amortization (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 01, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Definite-lived intangible assets
Amortization expense		$ 30	$ 29	$ 30
Expected intangible amortization expense for subsequent years
2021		20
2022		19
2023		19
2024		19
2025		18
Balance thereafter		206
Impairment
Indefinite-lived intangible assets impairment	$ 0	35
Trade names
Impairment
Indefinite-lived intangible assets impairment		$ 35

Summary of Significant Accounting Standards and Policies - ASUs (Details) - USD ($) $ in Millions	Jan. 01, 2019	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018
Recently Adopted Accounting Standards
Lease, Practical expedients, Package	true
Lease, Practical expedients, Use of hindsight	false
Operating lease liabilities		$ 182
Operating lease assets		$ 173		$ 151
Operating Lease, Liability, Statement of Financial Position		us-gaap:AccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent		us-gaap:AccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent	us-gaap:AccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent
ASU 2017-04,Intangibles - Goodwill and Other
Recently Adopted Accounting Standards
Change in Accounting Principle, Accounting Standards Update, Adopted			true
AUS 2016-13, Financial Instruments - Credit Losses
Recently Adopted Accounting Standards
Change in Accounting Principle, Accounting Standards Update, Adopted			true
ASU 2016-02, Leases
Recently Adopted Accounting Standards
Change in Accounting Principle, Accounting Standards Update, Adopted	true
ASU 2016-02, Leases \| Cumulative Effect, Period of Adoption, Adjustment
Recently Adopted Accounting Standards
Operating lease liabilities					$ 170
Operating lease assets					$ 161
ASU 2018-14 Compensation - Retirement Benefits
Recently Adopted Accounting Standards
Change in Accounting Principle, Accounting Standards Update, Adopted			true
ASU 2017-12
Recently Adopted Accounting Standards
Change in Accounting Principle, Accounting Standards Update, Adopted	true

Acquisitions - PureCircle (Details) - USD ($) $ in Millions		12 Months Ended
Acquisitions - PureCircle (Details) - USD ($) $ in Millions	Jul. 01, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Acquisitions
Payment for acquisition, net of cash acquired		$ 236	$ 42
Redeemable non-controlling interests		70
Purchase price allocation
Goodwill		902	$ 801	$ 791
PureCircle Limited
Acquisitions
Ownership percentage by parent	75.00%
Ownership percentage by noncontrolling owners	25.00%
PureCircle Limited
Acquisitions
Payment for acquisition, net of cash acquired	$ 208
Cash acquired	14
Redeemable non-controlling interests	$ 74
Lag period over which financial results will be reported during the integration process	1 month
Purchase price allocation
Working capital (excluding cash)		60
Property, plant and equipment		91
Other, net		(22)
Identifiable intangible assets		68
Goodwill		85
Total fair value, net of cash		282
Less: Non-redeemable non-controlling interests		74
Total purchase price, net of cash		$ 208

Acquisitions - Verdient (Details) $ in Millions, $ in Millions			12 Months Ended
	Nov. 03, 2020 CAD ($)	Nov. 03, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)
Acquisitions
Goodwill			$ 902	$ 791	$ 801
Verdient Foods, Inc.
Acquisitions
Percentage acquired				20.00%
Verdient Foods, Inc.
Acquisitions
Additional percentage of outstanding shares acquired		80.00%	80.00%
Equity method investment, Other than temporary impairment			$ 10
Cash consideration	$ 33	$ 26
Goodwill		14
Tangible assets, net		$ 15

Acquisitions - Western Polymer (Details) - USD ($) $ in Millions		12 Months Ended
	Mar. 01, 2019	Dec. 31, 2020	Dec. 31, 2019
Acquisitions
Payment for acquisition, net of cash acquired		$ 236	$ 42
Cash acquired from acquisition		$ 14	$ 4
Western Polymer
Acquisitions
Payment for acquisition, net of cash acquired	$ 42
Cash acquired from acquisition	4
Goodwill and intangible assets	13
Tangible assets, net	$ 29

Acquisitions - Integration costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Acquisitions
Pre-tax acquisition and integration costs	$ 11	$ 3	$ 0

Revenue Recognition (Details) $ in Millions	3 Months Ended								12 Months Ended
Revenue Recognition (Details) $ in Millions	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Disaggregation of revenue
Revenue, practical expedient, incremental cost of obtaining contract									true
Number of reportable business segments \| segment									4
Total net sales	$ 1,593	$ 1,502	$ 1,349	$ 1,543	$ 1,549	$ 1,574	$ 1,550	$ 1,536	$ 5,987	$ 6,209	$ 6,289
North America
Disaggregation of revenue
Total net sales									3,662	3,834	3,857
South America
Disaggregation of revenue
Total net sales									919	960	988
Asia-Pacific
Disaggregation of revenue
Total net sales									813	823	837
EMEA
Disaggregation of revenue
Total net sales									$ 593	$ 592	$ 607

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Restructuring and Impairment Charges - Charges (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 01, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Nov. 03, 2020
Restructuring and impairment charges
Restructuring/impairment charges		$ 93	$ 57	$ 64
Restructuring charges		48	57
Asset impairment		45
Indefinite-lived intangible assets impairment	$ 0	35
Trade names
Restructuring and impairment charges
Indefinite-lived intangible assets impairment		35
Verdient Foods, Inc.
Restructuring and impairment charges
Equity method investment, Other than temporary impairment		$ 10
Additional percentage of outstanding shares acquired		80.00%			80.00%
Cost Smart Cost of Sales and SG&A Program \| Employee-related severance costs
Restructuring and impairment charges
Restructuring charges		$ 9
Cost Smart Cost of Sales Program
Restructuring and impairment charges
Restructuring charges		23	29	49
Cost Smart Cost of Sales Program, Production facility closure, Australia
Restructuring and impairment charges
Restructuring charges		10	15
Cost Smart Cost of Sales Program, Production facility closure, Australia \| Asset write-off
Restructuring and impairment charges
Restructuring charges		5
Cost Smart Cost of Sales Program, Production facility closure, Australia \| Accelerated depreciation
Restructuring and impairment charges
Restructuring charges		1	10
Cost Smart Cost of Sales Program, Production facility closure, Australia \| Employee-related severance costs
Restructuring and impairment charges
Restructuring charges			4
Cost Smart Cost of Sales Program, Production facility closure, Australia \| Other restructuring costs
Restructuring and impairment charges
Restructuring charges		4	1
Cost Smart Cost of Sales Program, South America \| Employee-related severance costs
Restructuring and impairment charges
Restructuring charges			3
Cost Smart Cost of Sales Program, North America
Restructuring and impairment charges
Restructuring charges			11
Cost Smart Cost of Sales Program, North America \| Cessation of wet-milling
Restructuring and impairment charges
Restructuring charges			2
Cost Smart SG&A Program
Restructuring and impairment charges
Restructuring charges		25	28	11
Cost Smart SG&A Program \| Employee-related severance costs
Restructuring and impairment charges
Restructuring charges		7	13
Cost Smart SG&A Program \| Employee-related severance and other costs
Restructuring and impairment charges
Restructuring charges			28
Cost Smart SG&A Program \| Other restructuring costs
Restructuring and impairment charges
Restructuring charges		18	15
Cost Smart SG&A Program, Latin American Finance Transformation Initiative \| Other restructuring costs
Restructuring and impairment charges
Restructuring charges			$ 2
Brazil leaf extraction Process restructuring
Restructuring and impairment charges
Restructuring charges				$ 1
Facility and Product Line Closures in North America
Restructuring and impairment charges
Restructuring charges		13
Facility and Product Line Closures in North America \| Accelerated depreciation
Restructuring and impairment charges
Restructuring charges		7
Facility and Product Line Closures in North America \| Employee-related severance costs
Restructuring and impairment charges
Restructuring charges		2
Facility and Product Line Closures in North America \| Other restructuring costs
Restructuring and impairment charges
Restructuring charges		$ 4

Restructuring and Impairment Charges - Employee-related severance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restructuring accrual
Restructuring charges	$ 48	$ 57
Employee-related severance costs
Restructuring accrual
Balance in severance accrual at beginning of period	15
Acquisition related	1
Payments made to terminated employees	(12)
Foreign exchange translation	(1)
Balance in severance accrual at end of period	12	$ 15
Restructuring reserve, Expected to be paid in next 12 months	11
Cost Smart Cost of Sales and SG&A Program \| Employee-related severance costs
Restructuring accrual
Restructuring charges	$ 9

Restructuring and Impairment Charges - Other assets (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 01, 2020	Dec. 31, 2020
Restructuring and impairment charges
Indefinite-lived intangible assets impairment	$ 0	$ 35
Other assets
Restructuring and impairment charges
Assets held for sale		$ 8

Financial Instruments, Derivatives and Hedging Activities - Commodity price hedging (Details) bu in Millions, MMBTU in Millions	12 Months Ended
	Dec. 31, 2020 MMBTU bu
Commodity Contracts \| Minimum
Financial instruments, derivatives and hedging activities
Maturity period of price risk derivative	12 months
Commodity Contracts \| Maximum
Financial instruments, derivatives and hedging activities
Maturity period of price risk derivative	24 months
Corn Commodity
Financial instruments, derivatives and hedging activities
Futures contract (in bushels for corn and gallons for ethanol) \| bu	95
Natural Gas Commodity
Financial instruments, derivatives and hedging activities
Natural gas futures contract (in mmbtu) \| MMBTU	33

Financial Instruments, Derivatives and Hedging Activities - Foreign currency hedging (Details) - Foreign Currency Forward Contracts - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Short \| Not Designated as Hedging Instrument
Financial instruments, derivatives and hedging activities
Derivative notional amount	$ 410	$ 621
Long \| Not Designated as Hedging Instrument
Financial instruments, derivatives and hedging activities
Derivative notional amount	224	356
Cash Flow Hedging \| Short \| Designated as Hedging Instrument
Financial instruments, derivatives and hedging activities
Derivative notional amount	401	374
Cash Flow Hedging \| Long \| Designated as Hedging Instrument
Financial instruments, derivatives and hedging activities
Derivative notional amount	$ 542	$ 541

Financial Instruments, Derivatives and Hedging Activities - Interest rate hedging (Details) - 4.625% senior notes due November 1, 2020 $ in Millions	Dec. 31, 2019 USD ($)
Financial instruments, derivatives and hedging activities
Principal amount	$ 400
Debt, fixed interest rate (as a percent)	4.625%
Fair Value Hedging \| Interest Rate Swap
Financial instruments, derivatives and hedging activities
Principal amount	$ 200

Financial Instruments, Derivatives and Hedging Activities - CF Hedges in AOCI (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Loss.
Accumulated other comprehensive income (loss)	$ (1,133)	$ (1,158)
Cash Flow Hedging
Accumulated Other Comprehensive Loss.
Accumulated other comprehensive income (loss)	42	(9)
Cash Flow Hedging \| Commodity Contracts
Accumulated Other Comprehensive Loss.
Accumulated other comprehensive income (loss)	47	(11)
Tax effect on gains (losses) of derivative instruments	(16)	5
Cash Flow Hedging \| Foreign Currency Contracts
Accumulated Other Comprehensive Loss.
Accumulated other comprehensive income (loss)	(1)	3
Tax effect on gains (losses) of derivative instruments		(1)
Cash Flow Hedging \| Interest Rate Contracts
Accumulated Other Comprehensive Loss.
Accumulated other comprehensive income (loss)	(4)	$ (1)
Tax effect on gains (losses) of derivative instruments	$ 1

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Financial Instruments, Derivatives and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Designated as Hedging Instrument
Fair value of derivatives
Fair value of derivative instruments, Assets	$ 61	$ 17
Fair value of derivative instruments, Liabilities	18	25
Fair value of derivative instruments, Net Assets/(Liabilities)	43	(8)
Designated as Hedging Instrument \| Accounts receivable, net
Fair value of derivatives
Fair value of derivative instruments, Assets	57	12
Designated as Hedging Instrument \| Other assets
Fair value of derivatives
Fair value of derivative instruments, Assets	4	5
Designated as Hedging Instrument \| Accounts payable and accrued liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	16	17
Designated as Hedging Instrument \| Non-current liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	2	8
Designated as Hedging Instrument \| Commodity Contracts
Fair value of derivatives
Fair value of derivative instruments, Assets	54	6
Fair value of derivative instruments, Liabilities	6	17
Fair value of derivative instruments, Net Assets/(Liabilities)	48	(11)
Designated as Hedging Instrument \| Commodity Contracts \| Accounts receivable, net
Fair value of derivatives
Fair value of derivative instruments, Assets	50	5
Designated as Hedging Instrument \| Commodity Contracts \| Other assets
Fair value of derivatives
Fair value of derivative instruments, Assets	4	1
Designated as Hedging Instrument \| Commodity Contracts \| Accounts payable and accrued liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	4	13
Designated as Hedging Instrument \| Commodity Contracts \| Non-current liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	2	4
Designated as Hedging Instrument \| Foreign Currency Forward Contracts
Fair value of derivatives
Fair value of derivative instruments, Assets	7	10
Fair value of derivative instruments, Liabilities	12	8
Fair value of derivative instruments, Net Assets/(Liabilities)	(5)	2
Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Accounts receivable, net
Fair value of derivatives
Fair value of derivative instruments, Assets	7	7
Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Other assets
Fair value of derivatives
Fair value of derivative instruments, Assets		3
Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Accounts payable and accrued liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	12	4
Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Non-current liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities		4
Designated as Hedging Instrument \| Interest Rate Contracts
Fair value of derivatives
Fair value of derivative instruments, Assets		1
Fair value of derivative instruments, Net Assets/(Liabilities)		1
Designated as Hedging Instrument \| Interest Rate Contracts \| Other assets
Fair value of derivatives
Fair value of derivative instruments, Assets		1
Not Designated as Hedging Instrument
Fair value of derivatives
Fair value of derivative instruments, Assets	8	7
Fair value of derivative instruments, Liabilities	11	11
Fair value of derivative instruments, Net Assets/(Liabilities)	(3)	(4)
Not Designated as Hedging Instrument \| Accounts receivable, net
Fair value of derivatives
Fair value of derivative instruments, Assets	7	6
Not Designated as Hedging Instrument \| Other assets
Fair value of derivatives
Fair value of derivative instruments, Assets	1	1
Not Designated as Hedging Instrument \| Accounts payable and accrued liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	9	9
Not Designated as Hedging Instrument \| Non-current liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	2	2
Not Designated as Hedging Instrument \| Commodity Contracts
Fair value of derivatives
Fair value of derivative instruments, Assets	3	2
Fair value of derivative instruments, Liabilities	1	1
Fair value of derivative instruments, Net Assets/(Liabilities)	2	1
Not Designated as Hedging Instrument \| Commodity Contracts \| Accounts receivable, net
Fair value of derivatives
Fair value of derivative instruments, Assets	3	2
Not Designated as Hedging Instrument \| Commodity Contracts \| Accounts payable and accrued liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	1	1
Not Designated as Hedging Instrument \| Foreign Currency Forward Contracts
Fair value of derivatives
Fair value of derivative instruments, Assets	5	5
Fair value of derivative instruments, Liabilities	10	10
Fair value of derivative instruments, Net Assets/(Liabilities)	(5)	(5)
Not Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Accounts receivable, net
Fair value of derivatives
Fair value of derivative instruments, Assets	4	4
Not Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Other assets
Fair value of derivatives
Fair value of derivative instruments, Assets	1	1
Not Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Accounts payable and accrued liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	8	8
Not Designated as Hedging Instrument \| Foreign Currency Forward Contracts \| Non-current liabilities
Fair value of derivatives
Fair value of derivative instruments, Liabilities	$ 2	$ 2

Financial Instruments, Derivatives and Hedging Activities - Additional information - FV hedges (Details) - Fair Value Hedging - Long-term debt $ in Millions	Dec. 31, 2019 USD ($)
Additional information pertaining to fair value hedges
Carrying Amount of the Hedged Liabilities	$ (201)
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities	$ (1)

Financial Instruments, Derivatives and Hedging Activities - Additional information - CF hedges (Details) - Cash Flow Hedging - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Hedging relationships
Gains (Losses) Recognized in OCI	$ 5	$ (19)	$ 8
Financing costs, net
Hedging relationships
Gains (Losses) Reclassified from AOCI into Income	(65)	(14)	(6)
Commodity Contracts
Hedging relationships
Gains (Losses) Recognized in OCI	17	(24)	8
Gains (Losses) Reclassified from AOCI into Income	(62)	(12)	(6)
Foreign Currency Contracts
Hedging relationships
Gains (Losses) Recognized in OCI	(7)	5
Foreign Currency Contracts \| Cost of sales
Hedging relationships
Gains (Losses) Reclassified from AOCI into Income	(2)		1
Interest Rate Contracts
Hedging relationships
Gains (Losses) Recognized in OCI	(5)
Interest Rate Contracts \| Net sales/Cost of sales
Hedging relationships
Gains (Losses) Reclassified from AOCI into Income	$ (1)	$ (2)	$ (1)

Financial Instruments, Derivatives and Hedging Activities - Gain (Losses) Recognized in Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Hedging relationships
Gains expected to be reclassified into earnings during the next twelve months, net of tax	$ 44
Gains expected to be reclassified into earnings during the next twelve months, income tax effect	15
Fair Value Hedging \| Interest Rate Contracts \| Financing costs, net
Hedging relationships
Gains (losses) recognized in income, Hedging instruments	(1)	$ 2	$ (2)
Gains (losses) recognized in income, Hedged item	$ 1	$ (2)	$ 2

Financial Instruments, Derivatives and Hedging Activities - FV (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fair value of assets and liabilities
Long-term debt, noncurrent, Fair Value	$ 1,751	$ 1,751
Carrying value
Fair value of assets and liabilities
Long-term debt, noncurrent, Fair Value	1,800
Fair Value, Measurements, Recurring
Fair value of assets and liabilities
Available for sale securities	11	13
Derivative assets	69	24
Derivative liabilities	29	36
Long-term debt, noncurrent, Fair Value	1,751	1,751
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 1
Fair value of assets and liabilities
Available for sale securities	11	13
Derivative assets	53	7
Derivative liabilities	3	5
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 2
Fair value of assets and liabilities
Derivative assets	16	17
Derivative liabilities	26	31
Long-term debt, noncurrent, Fair Value	$ 1,751	$ 1,751

Financing Arrangements - Total debt (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Financing Arrangements
Total debt	$ 2,186	$ 1,848

Financing Arrangements - Notes (Details) - USD ($) $ in Millions			12 Months Ended
	Jul. 09, 2020	Jun. 08, 2020	Dec. 31, 2020	Dec. 31, 2019
2.9% senior notes due June 1, 2030 and 3.9% senior notes due June 1, 2050
Financing Arrangements
Discount			$ 7
Debt issuance costs capitalized			$ 9
2.9% senior notes due June 1, 2030
Financing Arrangements
Debt, interest rate (as a percent)			2.90%
Principal amount			$ 600
3.9% senior notes due June 1, 2050
Financing Arrangements
Debt, interest rate (as a percent)			3.90%
Principal amount			$ 400
Revolving credit facility
Financing Arrangements
Repayments of long-term debt			$ 394
4.625% senior notes due November 1, 2020
Financing Arrangements
Debt, interest rate (as a percent)			4.625%	4.625%
Principal amount				$ 400
Amount of debt redeemed		$ 400
Debt redemption price	$ 409
Accrued interest portion of debt redemption price	4
"Make whole" premium portion of debt redemption price	$ 5
5.62% senior notes due March 25, 2020
Financing Arrangements
Repayments of long-term debt			$ 200
Debt, interest rate (as a percent)			5.62%	5.62%
Term loan credit agreement due April 12, 2021
Financing Arrangements
Long-term debt, current			$ 380

Financing Arrangements - Term Loan (Details) - USD ($) $ in Millions	Apr. 12, 2019	Dec. 31, 2020	Dec. 31, 2019	Apr. 01, 2019
Term loan credit agreement due April 25, 2019
Long-term debt
Long-term debt excluding fair value adjustments				$ 165
Term loan credit agreement due April 12, 2021
Long-term debt
Long-term debt excluding fair value adjustments	$ 500		$ 405
Long-term debt, current		$ 380
Term of the credit agreement	24 months

Financing Arrangements - Revolving credit agreement (Details) - USD ($) $ in Millions	Oct. 11, 2016	Dec. 31, 2020
Foreign line of credit
Long-term debt
Unused operating lines of credit		$ 1,200
Revolving credit facility
Long-term debt
Debt instrument term	5 years
Maximum borrowing capacity	$ 1,000
Borrowings outstanding		$ 0
Previously existing revolving credit agreement
Long-term debt
Maximum borrowing capacity	$ 1,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Financing Arrangements - Carrying amount and Fair value (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Apr. 12, 2019	Apr. 01, 2019
Financing Arrangements
Fair value adjustment related to hedged fixed rate debt instruments		$ 1
Long-term debt, noncurrent	$ 1,748	1,766
Short-term borrowings	58	82
Total short-term borrowings	438	82
Total debt, Carrying Amount	2,186	1,848
Long-term debt, noncurrent, Fair Value	1,751	1,751
Short-term borrowings, Fair Value	58	82
Total short-term borrowings, Fair Value	438	82
Total debt, Fair Value	$ 2,189	$ 1,833
2.9% senior notes due June 1, 2030
Financing Arrangements
Debt, interest rate (as a percent)	2.90%
Long-term debt excluding fair value adjustments	$ 594
Long-term debt, noncurrent, Fair Value	$ 596
3.2% senior notes due October 1, 2026
Financing Arrangements
Debt, interest rate (as a percent)	3.20%	3.20%
Long-term debt excluding fair value adjustments	$ 497	$ 497
Long-term debt, noncurrent, Fair Value	$ 500	$ 491
3.9% senior notes due June 1, 2050
Financing Arrangements
Debt, interest rate (as a percent)	3.90%
Long-term debt excluding fair value adjustments	$ 390
Long-term debt, noncurrent, Fair Value	$ 395
4.625% senior notes due November 1, 2020
Financing Arrangements
Debt, interest rate (as a percent)	4.625%	4.625%
Long-term debt excluding fair value adjustments		$ 400
Long-term debt, noncurrent, Fair Value		$ 399
6.625% senior notes due April 15, 2037
Financing Arrangements
Debt, interest rate (as a percent)	6.625%	6.625%
Long-term debt excluding fair value adjustments	$ 253	$ 253
Long-term debt, noncurrent, Fair Value	$ 246	$ 246
5.62% senior notes due March 25, 2020
Financing Arrangements
Debt, interest rate (as a percent)	5.62%	5.62%
Long-term debt excluding fair value adjustments		$ 200
Long-term debt, noncurrent, Fair Value		200
Term loan credit agreement due April 25, 2019
Financing Arrangements
Long-term debt excluding fair value adjustments				$ 165
Term loan credit agreement due April 12, 2021
Financing Arrangements
Long-term debt excluding fair value adjustments		405	$ 500
Long-term debt, current	$ 380
Long-term debt, noncurrent, Fair Value		405
Long-term debt, current, Fair Value	380
Other long-term borrowings
Financing Arrangements
Long-term debt excluding fair value adjustments	14
Long-term debt, noncurrent, Fair Value	$ 14
Revolving credit facility
Financing Arrangements
Long-term debt excluding fair value adjustments		10
Long-term debt, noncurrent, Fair Value		$ 10

Financing Arrangements - Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Long-term debt maturities
Long-term debt maturing in 2026	$ 500
Long-term debt maturing in 2030	600
Long-term debt maturing in 2037	250
Long-term debt maturing in 2050	400
Guaranteed obligations of consolidated subsidiaries	$ 58	$ 57

Leases - Lease costs (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Lease costs (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Leases
Finance lease liability	$ 0
Lease Cost
Operating lease cost	58	$ 55
Variable operating lease cost	29	24
Short term lease cost	4	3
Lease cost	$ 91	$ 82

Leases - Operating lease reconciliation (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of future undiscounted cash flows to the operating lease liabilities and the related ROU assets
2021	$ 51
2022	43
2023	33
2024	23
2025	15
Thereafter	37
Total future lease payments	202
Less imputed interest	20
Present value of future lease payments	$ 182
Operating Lease, Liability, Statement of Financial Position	us-gaap:AccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent	us-gaap:AccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent	us-gaap:AccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent
Less current lease liabilities	$ 46	$ 41
Operating Lease, Liability, Current, Statement of Financial Position	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Non-current operating lease liabilities	$ 136	$ 120
Operating lease assets	$ 173	$ 151
ASU 2016-02, Leases \| Cumulative Effect, Period of Adoption, Adjustment
Reconciliation of future undiscounted cash flows to the operating lease liabilities and the related ROU assets
Present value of future lease payments			$ 170
Operating lease assets			$ 161

Leases - Other Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other information
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases	$ 60	$ 55
Right-of-use assets obtained in exchange for lease liabilities: Operating leases	$ 76	$ 212
Weighted average remaining lease term (years): Operating leases	5 years 6 months	5 years 6 months
Weighted average discount rate: Operating leases	4.90%	5.70%

Income Taxes - Provision for income taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income (loss) before income taxes:
U.S.	$ (15)	$ 74	$ 121
Foreign	521	508	500
Income before income taxes	506	582	621
Current tax expense:
U.S. federal	1	6	17
State and local	2	2	1
Foreign	156	147	172
Total current tax expense	159	155	190
Deferred tax expense (benefit):
U.S. federal	(18)	(8)	(14)
State and local	(1)		(2)
Foreign	12	11	(7)
Total deferred tax expense (benefit)	(7)	3	(23)
Total provision for income taxes	$ 152	$ 158	$ 167

Income Taxes - Deferred taxes (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets attributable to:
Employee benefit accruals	$ 20	$ 23
Pension and postretirement plans	21	22
Lease liabilities	44	39
Derivative contracts		2
Other	60	46
Net operating loss carryforwards	32	24
Foreign tax credit carryforwards	5	1
Total deferred tax assets	182	157
Valuation allowance	(30)	(29)
Total deferred tax assets (net of valuation allowance)	152	128
Deferred tax liabilities attributable to:
Property, plant and equipment	173	175
Identified intangibles	46	41
Right-of-use lease assets	42	37
Foreign withholding and state taxes on unremitted earnings	31	32
Goodwill	20	17
Brazilian indirect tax credits	18	8
Derivative contracts	16
Total deferred tax liabilities	346	310
Net deferred tax liabilities	$ 194	$ 182

Income Taxes - Operating loss carryforwards (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Operating losses
Net operating loss carryforwards	$ 32	$ 24
State
Operating losses
Net operating loss carryforwards	12	9
Foreign
Operating losses
Net operating loss carryforwards	$ 20	$ 15

Income Taxes - Tax credit carryforward valuation allowance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Tax credit carryforward valuation allowance
Valuation allowance on foreign subsidiaries net deferred tax assets	$ 2	$ 1
Increase in foreign net operating loss carryforwards	19
State
Tax credit carryforward valuation allowance
Loss carryforwards, valuation allowance	12	9
Credit carryforwards, valuation allowance	4	4
Tax carryforwards, subject to limitations	1	1
Foreign
Tax credit carryforward valuation allowance
Loss carryforwards, valuation allowance	6	13
Credit carryforwards, valuation allowance	$ 5	$ 1

Income Taxes - Reconciliation of effective tax rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of effective tax rate
Provision for tax at statutory rate (as a percent)	21.00%	21.00%	21.00%
Tax rate difference on foreign income (as a percent)	7.90%	5.80%	5.20%
Net impact of tax benefit of intercompany financings (as a percent)	(0.80%)	(1.20%)	(0.80%)
Net impact of global intangible low-taxed income ("GILTI") (as a percent)	(1.00%)	1.20%	1.00%
Net impact of U.S. foreign tax credits	1.60%	1.00%	0.50%
Net impact of valuation allowance in Argentina	(0.60%)	0.30%	1.00%
Other items - net (as a percent)	1.90%	(1.00%)	(1.00%)
Provision at effective tax rate (as a percent)	30.00%	27.10%	26.90%
Mexico
Reconciliation of effective tax rate
Provision for tax at statutory rate (as a percent)	30.00%
Pakistan
Reconciliation of effective tax rate
Provision for tax at statutory rate (as a percent)	29.00%
Colombia
Reconciliation of effective tax rate
Provision for tax at statutory rate (as a percent)	33.00%
Brazil
Reconciliation of effective tax rate
Provision for tax at statutory rate (as a percent)	34.00%

Income Taxes - GILTI and Valuation allowance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Amount of tax benefit from GILTI high-tax exclusion election	$ 5
Net impact of global intangible low-taxed income ("GILTI") (as a percent)	(1.00%)	1.20%	1.00%
Increase in valuation allowance of foreign subsidiary net deferred tax assets	$ 3	$ 2	$ 6
Percentage increase in valuation allowance of foreign subsidiary net deferred tax assets	0.6	0.3	1.0

Income Taxes - Undistributed earnings (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2017
Undistributed earnings
Undistributed earnings on foreign subsidiaries tax provision		$ 31
Undistributed earnings of foreign subsidiaries	$ 2,200

Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Balance at beginning of period	$ 22	$ 30
Additions for tax positions related to prior years	33
Reductions related to a lapse in the statute of limitations	(9)	(8)
Balance at end of period	46	22
Unrecognized tax benefit that, if recognized, could affect the effective tax rate in future periods	36
Remaining unrecognized tax benefits	10
Unrecognized tax benefit, income tax receivable	9
Unrecognized tax foreign, benefit that would be created as part of Canada and US process	1
Interest expense accrued, net of interest income	4	$ 2
Amount of unrecognized tax benefits that may be recognized within 12	12
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	$ 3

Benefit Plans - Pension Obligation and Funded Status (Details) - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
US
Benefit obligation
Balance at the beginning of the period	$ 387	$ 357
Service cost	5	5	$ 6
Interest cost	11	14	13
Benefits paid	(23)	(28)
Actuarial loss (gain)	29	39
Balance at the end of the period	409	387	357
Fair value of plan assets
Balance at the beginning of the period	408	353
Actual return on plan assets	53	82
Employer contributions	1	1
Benefits paid	(23)	(28)
Balance at the end of the period	439	408	353
Funded status	30	21
Non-US
Benefit obligation
Balance at the beginning of the period	254	223
Service cost	4	3	3
Interest cost	10	10	10
Benefits paid	(12)	(11)
Actuarial loss (gain)	14	24
Curtailment / settlement / amendments		(2)
Foreign currency translation	5	7
Balance at the end of the period	275	254	223
Fair value of plan assets
Balance at the beginning of the period	231	207
Actual return on plan assets	22	24
Employer contributions	4	7
Benefits paid	(12)	(11)
Plan settlements		(3)
Foreign currency translation	4	7
Balance at the end of the period	249	231	$ 207
Funded status	$ (26)	$ (23)

Benefit Plans - Pension amounts recognized (Details) - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost
Accumulated benefit obligation	$ 664	$ 601
US
Amounts recognized in the Consolidated Balance Sheets
Non-current asset	41	32
Current liabilities	(1)	(1)
Non-current liabilities	(10)	(10)
Net asset (liability) recognized	30	21
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost
Net actuarial loss	12	15
Prior service cost	(5)	(6)
Net amount recognized	7	9
Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	(11)	(11)
Accumulated benefit obligation	(10)	(10)
Components of net periodic benefit cost
Service cost	5	5	$ 6
Interest cost	11	14	13
Expected return on plan assets	(21)	(18)	(21)
Amortization of actuarial loss		1
Amortization of prior service credit	(1)	(1)
Net periodic benefit cost/(benefit)	(6)	1	(2)
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial (gain) loss	(3)	(25)	19
Amortization of actuarial loss		(1)
Amortization of prior service credit	1	1
Total recorded in other comprehensive income	(2)	(25)	19
Net periodic benefit cost	(6)	1	(2)
Total recorded in other comprehensive income and net periodic benefit cost	(8)	(24)	17
Non-US
Amounts recognized in the Consolidated Balance Sheets
Non-current asset	36	31
Current liabilities	(1)	(2)
Non-current liabilities	(61)	(52)
Net asset (liability) recognized	(26)	(23)
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost
Net actuarial loss	61	62
Transition obligation	1	1
Net amount recognized	62	63
Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	(81)	(56)
Accumulated benefit obligation	(70)	(45)
Fair value of plan assets	19	2
Components of net periodic benefit cost
Service cost	4	3	3
Interest cost	10	10	10
Expected return on plan assets	(8)	(8)	(9)
Amortization of actuarial loss	2	2	2
Net periodic benefit cost/(benefit)	8	7	6
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial (gain) loss	1	7	4
Prior service cost		1
Amortization of actuarial loss	(2)	(2)	(2)
Total recorded in other comprehensive income	(1)	6	2
Net periodic benefit cost	8	7	6
Total recorded in other comprehensive income and net periodic benefit cost	$ 7	$ 13	$ 8

Benefit Plans - Pension assumptions (Details) - Pension Plan	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
US
Weighted average assumptions used to determine the company's obligations
Discount rate (as a percent)	2.58%	3.34%
Rate of compensation increase (as a percent)	4.26%	4.21%
Cash balance interest crediting rate (as a percent)	3.76%	4.16%
Weighted average assumptions used to determine the company's net periodic benefit cost
Discount rate (as a percent)	3.34%	4.38%	3.70%
Expected long-term return on plan assets (as a percent)	5.30%	5.30%	5.30%
Rate of compensation increase (as a percent)	4.21%	4.31%	4.42%
Cash balance interest crediting rate (as a percent)	4.16%	4.49%	4.56%
US \| Pro Forma
Weighted average assumptions used to determine the company's net periodic benefit cost
Expected long-term return on plan assets (as a percent)	5.30%
Non-US
Weighted average assumptions used to determine the company's obligations
Discount rate (as a percent)	2.84%	3.55%
Rate of compensation increase (as a percent)	3.54%	3.75%
Weighted average assumptions used to determine the company's net periodic benefit cost
Discount rate (as a percent)	3.55%	4.33%	4.02%
Expected long-term return on plan assets (as a percent)	3.81%	4.37%	4.31%
Rate of compensation increase (as a percent)	3.68%	3.63%	3.58%
Canada \| Pro Forma
Weighted average assumptions used to determine the company's net periodic benefit cost
Expected long-term return on plan assets (as a percent)	3.16%

Benefit Plans - Pension plan asset weighted average asset allocation (Details) - Pension Plan	Dec. 31, 2020	Dec. 31, 2019
US
Weighted average asset allocation
Weighted average asset allocation (as a percent)	100.00%	100.00%
US \| Equity securities
Weighted average asset allocation
Weighted average asset allocation (as a percent)	20.00%	21.00%
US \| Equity securities \| Minimum
Plan assets
Plan assets allocation percentage	15.00%
US \| Equity securities \| Maximum
Plan assets
Plan assets allocation percentage	25.00%
US \| Debt securities - Fixed income
Weighted average asset allocation
Weighted average asset allocation (as a percent)	79.00%	78.00%
US \| Debt securities - Fixed income \| Minimum
Weighted average asset allocation
Weighted average asset allocation (as a percent)	75.00%
US \| Debt securities - Fixed income \| Maximum
Weighted average asset allocation
Weighted average asset allocation (as a percent)	85.00%
US \| Cash and other
Weighted average asset allocation
Weighted average asset allocation (as a percent)	1.00%	1.00%
Non-US
Weighted average asset allocation
Weighted average asset allocation (as a percent)	100.00%	100.00%
Non-US \| Equity securities
Weighted average asset allocation
Weighted average asset allocation (as a percent)	18.00%	17.00%
Non-US \| Debt securities - Fixed income
Weighted average asset allocation
Weighted average asset allocation (as a percent)	58.00%	63.00%
Non-US \| Cash and other
Weighted average asset allocation
Weighted average asset allocation (as a percent)	24.00%	20.00%

Benefit Plans - Pension plan assets by category and FV (Details) - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
US
Plan assets
Fair value of plan assets	$ 439	$ 408	$ 353
US \| Equity index - U.S.
Plan assets
Fair value of plan assets	45	43
US \| Equity index - International
Plan assets
Fair value of plan assets	44	42
US \| Fixed income index- Long bond
Plan assets
Fair value of plan assets	$ 276	$ 295
US \| Fixed income index- Long bond \| Minimum
Plan assets
Fixed income securities maturity (in years)	10 years	10 years
US \| Fixed income index - Long government bond
Plan assets
Fair value of plan assets	$ 69	$ 25
US \| Fixed income index - Long government bond \| Minimum
Plan assets
Fixed income securities maturity (in years)	10 years	10 years
US \| Cash
Plan assets
Fair value of plan assets	$ 5	$ 3
US \| Fair Value, Inputs, Level 2
Plan assets
Fair value of plan assets	439	408
US \| Fair Value, Inputs, Level 2 \| Equity index - U.S.
Plan assets
Fair value of plan assets	45	43
US \| Fair Value, Inputs, Level 2 \| Equity index - International
Plan assets
Fair value of plan assets	44	42
US \| Fair Value, Inputs, Level 2 \| Fixed income index- Long bond
Plan assets
Fair value of plan assets	276	295
US \| Fair Value, Inputs, Level 2 \| Fixed income index - Long government bond
Plan assets
Fair value of plan assets	69	25
US \| Fair Value, Inputs, Level 2 \| Cash
Plan assets
Fair value of plan assets	5	3
Non-US
Plan assets
Fair value of plan assets	249	231	$ 207
Non-US \| Equity index - U.S.
Plan assets
Fair value of plan assets	26	22
Non-US \| Equity index - International
Plan assets
Fair value of plan assets	19	17
Non-US \| Fixed income index- Short bond
Plan assets
Fair value of plan assets	31
Non-US \| Fixed income index - Intermediate bond
Plan assets
Fair value of plan assets	38	52
Non-US \| Fixed income index- Long bond
Plan assets
Fair value of plan assets	106	95
Non-US \| Other
Plan assets
Fair value of plan assets	26	24
Non-US \| Cash
Plan assets
Fair value of plan assets	3	21
Non-US \| Fair Value, Inputs, Level 1
Plan assets
Fair value of plan assets	3	2
Non-US \| Fair Value, Inputs, Level 1 \| Cash
Plan assets
Fair value of plan assets	3	2
Non-US \| Fair Value, Inputs, Level 2
Plan assets
Fair value of plan assets	246	229
Non-US \| Fair Value, Inputs, Level 2 \| Equity index - U.S.
Plan assets
Fair value of plan assets	26	22
Non-US \| Fair Value, Inputs, Level 2 \| Equity index - International
Plan assets
Fair value of plan assets	19	17
Non-US \| Fair Value, Inputs, Level 2 \| Fixed income index- Short bond
Plan assets
Fair value of plan assets	31
Non-US \| Fair Value, Inputs, Level 2 \| Fixed income index - Intermediate bond
Plan assets
Fair value of plan assets	38	52
Non-US \| Fair Value, Inputs, Level 2 \| Fixed income index- Long bond
Plan assets
Fair value of plan assets	106	95
Non-US \| Fair Value, Inputs, Level 2 \| Other
Plan assets
Fair value of plan assets	$ 26	24
Non-US \| Fair Value, Inputs, Level 2 \| Cash
Plan assets
Fair value of plan assets		$ 19

Benefit Plans - Pension benefit payments (Details) - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
US
Benefit plans
Employer contributions	$ 1	$ 1
Expected contribution in next fiscal year	1
Expected future benefit payments
2021	23
2022	24
2023	24
2024	24
2025	24
Years 2026 - 2030	126
Non-US
Benefit plans
Employer contributions	4	$ 7
Expected contribution in next fiscal year	3
Expected future benefit payments
2021	11
2022	12
2023	13
2024	13
2025	13
Years 2026 - 2030	$ 70

Benefit Plans - Defined contribution plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Benefit Plans
Amounts charged to expense for defined contribution plans	$ 22	$ 20	$ 21

Benefit Plans - Postretirement funded status (Details) - Postemployment Retirement Benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Benefit obligation
Balance at the beginning of the period	$ 69	$ 64
Service cost		1	$ 1
Interest cost	3	3	3
Actuarial loss (gain)	4	6
Benefits paid	(5)	(5)
Foreign currency translation	(3)
Balance at the end of the period	68	69	$ 64
Funded status	$ (68)	$ (69)

Benefit Plans - Postretirement amounts recognized (Details) - Postemployment Retirement Benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amounts recognized in the Consolidated Balance Sheets
Current liabilities	$ (4)	$ (4)
Non-current liabilities	(64)	(65)
Net asset (liability) recognized	(68)	(69)
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost
Net actuarial loss	17	14
Prior service cost		(2)
Net amount recognized	17	12
Components of net periodic benefit cost
Service cost		1	$ 1
Interest cost	3	3	3
Amortization of actuarial loss	1
Amortization of prior service credit	(2)	(2)	(2)
Net periodic benefit cost	2	2	2
Amounts recorded in other comprehensive income and net periodic benefit cost
Net actuarial loss (gain)	4	6	(3)
Amortization of prior service credit	2	2	2
Amortization of actuarial loss	(1)
Total recorded in other comprehensive income	5	8	(1)
Net periodic benefit cost	2	2	2
Total recorded in other comprehensive income and net periodic benefit cost	$ 7	$ 10	$ 1

Benefit Plans - Postretirement assumptions and trends (Details) - Postemployment Retirement Benefits	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Weighted average assumptions used to determine the company's obligations
Discount rate (as a percent)	3.69%	4.18%
Weighted average assumptions used to determine the company's net periodic benefit cost
Discount rate (as a percent)	4.42%	5.49%	4.93%
US
Assumptions used in measuring benefit obligation
2020 increase in per capita cost (as a percent)	5.90%
Ultimate trend (as a percent)	4.50%
Year ultimate trend reached	2028
Canada
Assumptions used in measuring benefit obligation
2020 increase in per capita cost (as a percent)	5.83%
Ultimate trend (as a percent)	4.00%
Year ultimate trend reached	2040
Brazil
Assumptions used in measuring benefit obligation
2020 increase in per capita cost (as a percent)	7.07%
Ultimate trend (as a percent)	7.07%
Year ultimate trend reached	2020

Benefit Plans - Postretirement benefit payments (Details) - Postemployment Retirement Benefits $ in Millions	Dec. 31, 2020 USD ($)
Expected future benefit payments
2021	$ 4
2022	4
2023	4
2024	4
2025	4
Years 2026 - 2030	$ 19

Benefit Plans - Multiemployer Plans (Details) $ in Millions	12 Months Ended
Benefit Plans - Multiemployer Plans (Details) $ in Millions	Dec. 31, 2020 USD ($) item	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Multiemployer Plans
Multiemployer benefit plan that company contributes to \| item	1
Multiemployer Plan contributions \| $	$ 14	$ 13	$ 12

Equity - Preferred stock (Details) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Preferred stock:
Preferred stock, authorized (in shares)	25,000,000	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

Equity - Treasury stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions			3 Months Ended		12 Months Ended
	Feb. 05, 2019	Nov. 05, 2018	Mar. 31, 2019	Feb. 05, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Oct. 22, 2018
Treasury stock:
Purchase/acquisition of treasury stock (in shares)					0
Additional Paid-in Capital
Treasury stock:
Repurchases of common stock (in dollars)			$ (32)			$ (32)	$ 33
Treasury Stock
Treasury stock:
Purchase/acquisition of treasury stock (in shares)							5,847
Repurchases of common stock (in dollars)			$ (31)			$ (31)	$ 624
ASR agreement
Treasury stock:
Payment made for repurchase of shares		$ 455
Purchase/acquisition of treasury stock (in shares)	4,000	4,000
Repurchases of common stock (in dollars)		$ 423		$ 392
VWAP (in dollars per share)	$ 98.04			$ 98.04
Amount of cash returned from upfront payment in repurchase of stock	$ 63
2018 Stock Repurchase Program
Treasury stock:
Shares authorized to be repurchased (in shares)								8,000

Equity - Share activity (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Increase (decrease) in common stock, number of shares
Balance at beginning of period (in shares)	66,818	66,526	71,996
Stock options exercised	124	182	209
Purchase/acquisition of treasury stock (in shares)	0
Purchase/acquisition of treasury stock (in shares)			(5,847)
Balance at end of period (in shares)	67,016	66,818	66,526
Restricted stock units (RSUs) \| Employee
Increase (decrease) in common stock, number of shares
Issuance of share-based awards (in shares)	69	105	100
Performance shares and other share-based awards
Increase (decrease) in common stock, number of shares
Issuance of share-based awards (in shares)	5	5	68
Common Stock
Increase (decrease) in common stock, number of shares
Balance at beginning of period (in shares)	77,811	77,811	77,811
Balance at end of period (in shares)	77,811	77,811	77,811
Treasury Stock
Increase (decrease) in common stock, number of shares
Balance at beginning of period (in shares)	10,993	11,285	5,815
Stock options exercised	(124)	(182)	(209)
Purchase/acquisition of treasury stock (in shares)			5,847
Balance at end of period (in shares)	10,795	10,993	11,285
Treasury Stock \| Restricted stock units (RSUs) \| Employee
Increase (decrease) in common stock, number of shares
Issuance of share-based awards (in shares)	(69)	(105)	(100)
Treasury Stock \| Performance shares and other share-based awards
Increase (decrease) in common stock, number of shares
Issuance of share-based awards (in shares)	(5)	(5)	(68)

Equity - Share-based payments (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based compensation expense
Pre-tax compensation expense	$ 23	$ 18	$ 21
Income tax benefit	(2)	(2)	(3)
Total share-based compensation expense, net of income taxes	$ 21	16	18
Stock Incentive Plan
Shares authorized under Stock Incentive Plan	8.0
Shares available for future grants under Stock Incentive Plan	2.1
Stock options
Share-based compensation expense
Pre-tax compensation expense	$ 4	3	5
Income tax benefit			(1)
Total share-based compensation expense, net of income taxes	4	3	4
Restricted stock units (RSUs) \| Employee
Share-based compensation expense
Pre-tax compensation expense	12	10	12
Income tax benefit	(1)	(2)	(2)
Total share-based compensation expense, net of income taxes	11	8	10
Performance shares and other share-based awards
Share-based compensation expense
Pre-tax compensation expense	7	5	4
Income tax benefit	(1)
Total share-based compensation expense, net of income taxes	$ 6	$ 5	$ 4

Equity - Stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock options, Number of Options
Outstanding at the beginning of the period (in shares)	2,055
Granted (in shares)	336	247	215
Exercised (in shares)	(124)	(182)	(209)
Cancelled (in shares)	(29)
Outstanding at the end of the period (in shares)	2,238	2,055
Exercisable at the end of the period (in shares)	1,709
Stock options, Weighted Average Exercise Price per Share
Outstanding at the beginning of the period (in dollars per share)	$ 84.36
Granted (in dollars per share)	88.35
Exercised (in dollars per share)	47.12
Cancelled (in dollars per share)	103.57
Outstanding at the end of the period (in dollars per share)	86.55	$ 84.36
Exercisable at the end of the period (in dollars per share)	$ 84.38
Additional information pertaining to stock options
Average Remaining Contractual Term, Outstanding	5 years 1 month 24 days	5 years 3 months 18 days
Average Remaining Contractual Term, Exercisable	4 years 1 month 9 days
Aggregate Intrinsic Value, Outstanding (in dollars)	$ 14	$ 34
Aggregate Intrinsic Value, Exercisable (in dollars)	14
Cash received from exercise of stock options	$ 6	$ 6	$ 10
Weighted average grant date fair value of stock options granted (per share)	$ 11.48	$ 14.02	$ 24.01
Total intrinsic value of stock options exercised	$ 5	$ 10	$ 15
Stock options
Share-based compensation
Term of award	10 years
Period of vesting	3 years
Required service period	1 year
Assumptions used to measure the fair value of awards
Expected life	5 years 6 months	5 years 6 months	5 years 6 months
Risk-free interest rate (as a percent)	1.40%	2.50%	2.50%
Expected volatility (as a percent)	19.80%	19.70%	19.80%
Expected dividend yield (as a percent)	2.90%	2.70%	1.80%
Additional information pertaining to stock options
Unrecognized compensation cost	$ 2
Weighted-average period for amortization of unrecognized compensation cost	1 year 7 months 6 days

Equity - Restricted stock units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other disclosures
Share-based payments subject to redemption	$ 30	$ 31	$ 37	$ 36
Restricted stock units (RSUs) \| Employee
Share-based compensation
Vesting terms	3 years
Service period over which compensation expense would be amortized	1 year
Restricted stock unit activity
Non-vested at the beginning of the period (in shares)	339
Granted (in shares)	196
Vested (in shares)	(94)
Cancelled (in shares)	(23)
Non-vested at the end of the period (in shares)	418	339
Weighted-average fair value per share
Non-vested at the beginning of the period (in dollars per share)	$ 108.02
Granted (in dollars per share)	87.01
Vested (in dollars per share)	117.33
Cancelled (in dollars per share)	101.72
Non-vested at the end of the period (in dollars per share)	$ 96.45	$ 108.02
Other disclosures
Fair value of awards vested during the year	$ 17	$ 16	$ 15
Unrecognized compensation cost	$ 23
Weighted-average period for amortization of unrecognized compensation cost	1 year 9 months 18 days
Share-based payments subject to redemption	$ 23	$ 23

Equity - Performance shares (Details) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020 USD ($) item $ / shares shares	Dec. 31, 2019 USD ($) item $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)
Share-based compensation
Share-based payments subject to redemption		$ 30	$ 31	$ 37	$ 36
Performance Shares
Share-based compensation
Number of tranches \| item		2	2
Vesting terms				3 years
Granted (in shares) \| shares		81	70	27
Weighted-average fair value per share, Granted (in dollars per share) \| $ / shares		$ 94.48	$ 92.57	$ 141.91
Cancelled (in shares) \| shares		7
Unrecognized compensation cost		$ 4
Remaining requisite service period (in years)		1 year 9 months 18 days
Share-based payments subject to redemption		$ 7	$ 9
Performance shares, vesting based on shareholder return
Share-based compensation
Percentage of share-based compensation award		50.00%	50.00%
Performance shares calculation period (in years)		3 years
Vesting terms		3 years
Performance shares, vesting based on shareholder return \| Minimum
Share-based compensation
Performance shares available for vesting (as a percent)		0.00%
Performance shares, vesting based on shareholder return \| Maximum
Share-based compensation
Performance shares available for vesting (as a percent)		200.00%
Performance shares, vesting based on ROIC
Share-based compensation
Percentage of share-based compensation award		50.00%	50.00%
Performance shares calculation period (in years)		3 years
Vesting terms		3 years	3 years
Performance shares, vesting based on ROIC \| Minimum
Share-based compensation
Performance shares available for vesting (as a percent)		0.00%
Performance shares, vesting based on ROIC \| Maximum
Share-based compensation
Performance shares available for vesting (as a percent)		200.00%
Performance Shares Award Granted in 2018
Share-based compensation
Estimated pay out (as a percent)		0.00%
Performance Shares Award Granted in 2017
Share-based compensation
Award pay out achieved (as a percent)	0.00%

Equity - Other share-based awards under the SIP (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other share-based awards under the SIP
Amount of Directors' retainer paid in stock	$ 120
Percentage of additional Directors' retainer paid in stock	50.00%
Total share-based compensation expense included in net income	$ 23,000	$ 18,000	$ 21,000
Restricted stock units (RSUs) \| Director
Other share-based awards under the SIP
Minimum period over which deferred shares may be transferred after director's termination of service	6 months
Total share-based compensation expense included in net income	$ 2,000	$ 1,000	$ 1,000
Awards outstanding (in shares)	232
Carrying value of share units outstanding	$ 15,000

Equity - AOCI (Details) - USD ($) $ in Millions	12 Months Ended
Equity - AOCI (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Loss
Balance at the beginning of the period	$ 2,720
Balance at the end of the period	2,951	$ 2,720
Cumulative Translation Adjustment
Accumulated Other Comprehensive Loss
Balance at the beginning of the period	(1,089)	(1,080)	$ (951)
Other comprehensive income (loss) before reclassification adjustments	(25)	(9)	(129)
Net other comprehensive income (loss)	(25)	(9)	(129)
Balance at the end of the period	(1,114)	(1,089)	(1,080)
Hedging Activities
Accumulated Other Comprehensive Loss
Balance at the beginning of the period	(9)
Other comprehensive income (loss) before reclassification adjustments	5	(19)
Amount reclassified from accumulated OCI	65	14
Tax benefit (provision)	(19)	1
Net other comprehensive income (loss)	51	(4)
Balance at the end of the period	42	(9)
(Loss) Gain on Hedging Activities, Prior to adoption of ASU 2017-12
Accumulated Other Comprehensive Loss
Balance at the beginning of the period		(5)	(13)
Other comprehensive income (loss) before reclassification adjustments			8
Amount reclassified from accumulated OCI			6
Tax benefit (provision)			(4)
Net other comprehensive income (loss)			10
Other			(2)
Balance at the end of the period			(5)
(Loss) Gain on Hedging Activities, Prior to adoption of ASU 2017-12 \| ASU 2018-02
Accumulated Other Comprehensive Loss
Adoption of ASU			(2)
Pension and other postretirement plans
Accumulated Other Comprehensive Loss
Balance at the beginning of the period	(60)	(69)	(51)
Other comprehensive income (loss) before reclassification adjustments	(2)	11	(20)
Tax benefit (provision)	1	(2)	5
Net other comprehensive income (loss)	(1)	9	(15)
Other			(3)
Balance at the end of the period	(61)	(60)	(69)
Pension and other postretirement plans \| ASU 2018-02
Accumulated Other Comprehensive Loss
Adoption of ASU			(3)
Unrealized (Loss) Gain on Investment
Accumulated Other Comprehensive Loss
Balance at the beginning of the period			2
Other			(2)
Unrealized (Loss) Gain on Investment \| ASU 2016-01
Accumulated Other Comprehensive Loss
Adoption of ASU			(2)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Balance at the beginning of the period	(1,158)	(1,154)	(1,013)
Other comprehensive income (loss) before reclassification adjustments	(22)	(17)	(141)
Amount reclassified from accumulated OCI	65	14	6
Tax benefit (provision)	(18)	(1)	1
Net other comprehensive income (loss)	25	(4)	(134)
Other			(7)
Balance at the end of the period	$ (1,133)	$ (1,158)	(1,154)
Accumulated Other Comprehensive Loss \| ASU 2016-01
Accumulated Other Comprehensive Loss
Adoption of ASU			(2)
Accumulated Other Comprehensive Loss \| ASU 2018-02
Accumulated Other Comprehensive Loss
Adoption of ASU			$ (5)

Equity - EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Basic EPS:
Net Income Available to Ingredion - basic									$ 348	$ 413	$ 443
Weighted average number of shares outstanding, basic									67.2	66.9	70.9
Basic earnings per common share of Ingredion (in dollars per share)	$ 1.71	$ 1.37	$ 0.98	$ 1.12	$ 1.63	$ 1.48	$ 1.57	$ 1.50	$ 5.18	$ 6.17	$ 6.25
Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards									0.4	0.5	0.9
Diluted EPS:
Net Income Available to Ingredion - diluted									$ 348	$ 413	$ 443
Weighted Average Number of Shares Outstanding, Diluted, Total									67.6	67.4	71.8
Earnings Per Share, Diluted	$ 1.70	$ 1.36	$ 0.98	$ 1.11	$ 1.61	$ 1.47	$ 1.56	$ 1.48	$ 5.15	$ 6.13	$ 6.17
Antidilutive securities excluded in calculation of diluted EPS:
Antidilutive securities excluded from computation of earnings per share amount									1.7	1.1	0.5

Segment Information - Net sales (Details) $ in Millions	3 Months Ended								12 Months Ended
Segment Information - Net sales (Details) $ in Millions	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Segment information
Number of reportable business segments \| segment									4
Net sales	$ 1,593	$ 1,502	$ 1,349	$ 1,543	$ 1,549	$ 1,574	$ 1,550	$ 1,536	$ 5,987	$ 6,209	$ 6,289
Operating income Subtotal									659	705	767
Restructuring/impairment charges									(93)	(57)	(64)
Acquisition / integration costs									(11)	(3)
Brazil tax matter									36	22
Charge for fair value markup of acquired inventory									(6)
North America storm damage									(3)
Other										(3)
Operating income									582	664	703
North America
Segment information
Net sales									3,662	3,834	3,857
South America
Segment information
Net sales									919	960	988
Asia-Pacific
Segment information
Net sales									813	823	837
EMEA
Segment information
Net sales									593	592	607
Operating Segments \| North America
Segment information
Operating income Subtotal									487	522	545
Operating Segments \| South America
Segment information
Operating income Subtotal									112	96	99
Operating Segments \| Asia-Pacific
Segment information
Operating income Subtotal									80	87	104
Operating Segments \| EMEA
Segment information
Operating income Subtotal									102	99	116
Corporate, Non -Segment
Segment information
Operating income Subtotal									$ (122)	$ (99)	$ (97)

Segment Information - Restructuring charges (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment information
Restructuring/impairment charges			$ 93	$ 57	$ 64
Restructuring charges			48	57
Asset impairment			45
Brazil tax matter			36	22
Indirect tax credits \| Foreign
Segment information
Brazil tax matter	$ 35	$ 22	35	22
Pre-tax benefit			1
Tax provision benefit			3
Cost Smart Cost of Sales Program
Segment information
Restructuring charges			23	29	49
Cost Smart SG&A Program
Segment information
Restructuring charges			$ 25	28	11
Cost Smart SG&A Program \| Employee-related severance and other costs
Segment information
Restructuring charges				$ 28
Finance Transformation Initiative
Segment information
Restructuring charges					3
Brazil leaf extraction Process restructuring
Segment information
Restructuring charges					$ 1

Segment Information - Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Segment information
Total assets	$ 6,858	$ 6,040
North America
Segment information
Total assets	4,231	3,924
South America
Segment information
Total assets	818	774
Asia-Pacific
Segment information
Total assets	1,255	843
EMEA
Segment information
Total assets	$ 554	$ 499

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(11))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (bb)
-URI http://asc.fasb.org/extlink&oid=121559654&loc=d3e5710-111685

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 25
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=116870748&loc=SL6758485-165988

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(12))
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

+ Details

Segment Information - Depreciation, store expense and capital expenditures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment information
Depreciation and amortization	$ 213	$ 220	$ 247
Mechanical stores expense	54	57	57
Capital expenditures and mechanical stores purchases	340	328	350
North America
Segment information
Depreciation and amortization	147	146	180
Mechanical stores expense	39	40	38
Capital expenditures and mechanical stores purchases	243	226	232
South America
Segment information
Depreciation and amortization	19	22	24
Mechanical stores expense	7	10	11
Capital expenditures and mechanical stores purchases	39	45	61
Asia-Pacific
Segment information
Depreciation and amortization	32	37	27
Mechanical stores expense	4	4	5
Capital expenditures and mechanical stores purchases	46	40	39
EMEA
Segment information
Depreciation and amortization	15	15	16
Mechanical stores expense	4	3	3
Capital expenditures and mechanical stores purchases	$ 12	$ 17	$ 18

Segment Information - Sales and long-lived assets (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment information
Net sales	$ 1,593	$ 1,502	$ 1,349	$ 1,543	$ 1,549	$ 1,574	$ 1,550	$ 1,536	$ 5,987	$ 6,209	$ 6,289
Long-lived assets	2,842				2,629				2,842	2,629
US
Segment information
Net sales									2,284	2,368	2,386
Long-lived assets	1,276				1,239				1,276	1,239
Mexico
Segment information
Net sales									984	1,075	1,067
Long-lived assets	342				343				342	343
Canada
Segment information
Net sales									393	390	404
Long-lived assets	245				187				245	187
Brazil
Segment information
Net sales									447	479	478
Long-lived assets	202				205				202	205
Thailand
Segment information
Long-lived assets	165				156				165	156
Germany
Segment information
Long-lived assets	137				129				137	129
Korea
Segment information
Net sales									268	270	296
Long-lived assets	116				110				116	110
Other countries
Segment information
Net sales									1,611	1,627	$ 1,658
Long-lived assets	$ 359				$ 260				$ 359	$ 260

Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended		24 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020
Contingencies
Brazil tax matter			$ 36	$ 22
Brazilian indirect tax credits	$ 18	$ 8	18	8	$ 18
Indirect tax credits \| Foreign
Contingencies
Brazil tax matter	35	$ 22	35	22
Brazilian indirect tax credits	18		18		18
Future tax credits	$ 57		57		57
Pre-tax benefit			1
Tax provision benefit			3
Indirect tax credits \| Foreign \| Tax years 2005 - 2018 \| Maximum
Contingencies
Amount of indirect tax credits expected to receive				66
Indirect tax credits \| Foreign \| Tax years 2015 - 2018
Contingencies
Amount of indirect tax credits expected to receive			9
Indirect tax credits \| Foreign \| Tax years 2005 - 2014 \| Minimum
Contingencies
Amount of indirect tax credits expected to receive				22
Indirect tax credits \| Foreign \| Tax years 2005 - 2014 \| Other operating income, net
Contingencies
Brazil tax matter			$ 35	$ 22	$ 57

Supplementary Information - Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Accounts receivable net:
Accounts receivable - trade	$ 855	$ 830
Accounts receivable - other	170	157
Allowance for doubtful accounts	(14)	(10)
Total accounts receivable, net	1,011	977
Inventories:
Finished and in process	584	565
Raw materials	236	237
Manufacturing supplies and other	97	59
Total inventories	917	861
Accrued liabilities:
Compensation-related costs	96	93
Income taxes payable	26	16
Current lease liabilities	$ 46	$ 41
Operating Lease, Liability, Current, Statement of Financial Position	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Dividends payable	$ 43	$ 42
Accrued interest	11	15
Taxes payable other than income taxes	44	36
Other	155	138
Total accrued liabilities	421	381
Non-current liabilities:
Employees pension, indemnity and postretirement	139	132
Other	88	88
Total non-current liabilities	$ 227	$ 220

Supplementary Information - Consolidated Statements of Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other income, net:
Brazil tax matter	$ 36	$ 22
Value-added tax recovery			$ 5
Other	(5)	(3)	5
Other income - net	31	19	10
Financing costs, net:
Interest expense, net of amounts capitalized	68	84	81
Debt extinguishment costs	5
Interest income	(6)	(7)	(9)
Foreign currency transaction losses	14	4	14
Financing costs, net	81	81	86
Interest capitalized	$ 7	$ 5	$ 3

Supplementary Information - Consolidated Statements of Cash Flow (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 01, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplementary Cash Flow Information
Share-based compensation expense		$ 22	$ 18	$ 21
Indefinite-lived intangible assets impairment	$ 0	35
Other		42	15	18
Total other non-cash charges to net income		99	33	39
Interest paid		78	80	73
Income taxes paid		$ 120	$ 145	$ 231

Supplementary Information - Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Data (Unaudited)
Net sales	$ 1,593	$ 1,502	$ 1,349	$ 1,543	$ 1,549	$ 1,574	$ 1,550	$ 1,536	$ 5,987	$ 6,209	$ 6,289
Gross profit	352	326	271	323	323	344	329	316	1,272	1,312	1,368
Net income attributable to Ingredion	$ 115	$ 92	$ 66	$ 75	$ 109	$ 99	$ 105	$ 100	$ 348	$ 413	$ 443
Basic earnings per common share of Ingredion (in dollars per share)	$ 1.71	$ 1.37	$ 0.98	$ 1.12	$ 1.63	$ 1.48	$ 1.57	$ 1.50	$ 5.18	$ 6.17	$ 6.25
Diluted earnings per common share of Ingredion (in dollars per share)	1.70	1.36	0.98	1.11	1.61	1.47	1.56	1.48	$ 5.15	$ 6.13	$ 6.17
Dividends declared (in dollars per share)	$ 0.64	$ 0.64	$ 0.63	$ 0.63	$ 0.63	$ 0.63	$ 0.625	$ 0.625

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

Supplementary Information - Additional Quarterly Financial Data (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
Supplementary Information
Restructuring charges, after tax	$ 40	$ 15	$ 8	$ 11	$ 12	$ 22	$ 7	$ 3
Income (charges) for other matters, after tax	27				13
Income (charges) for other tax matters, after tax	3	(6)				$ (2)
Acquisition/integration costs, after tax	4	4	$ 2		$ 1			$ 1
Extinguishment of debt, after tax		4
Fair value markup of acquired inventory, after tax	1	3
Storm damage cost, after tax	$ 1	$ 2

Subsequent Events (Unaudited) (Details) - Subsequent Event. $ in Millions	Feb. 12, 2021 facility	Feb. 09, 2021 USD ($) facility subsidiary
Disposal Group, Not Discontinued Operations \| South American Subsidiaries, Property, Plant and Equipment
Subsequent Event
Impairment charge - Write-off of cumulative translation adjustment		$ 310
Number of manufacturing facilities to be disposed of \| facility		2
Disposal Group, Not Discontinued Operations \| South American Subsidiaries, Property, Plant and Equipment \| Minimum
Subsequent Event
Impairment charge		$ 350
Impairment charge - Write-down of contributed net assets		40
Disposal Group, Not Discontinued Operations \| South American Subsidiaries, Property, Plant and Equipment \| Maximum
Subsequent Event
Impairment charge		370
Impairment charge - Write-down of contributed net assets		$ 60
Joint Venture
Subsequent Event
Number of manufacturing facilities to be operated \| facility	5
Number of entity's subsidiaries contributing assets \| subsidiary		3
Joint Venture \| Affiliate of Grupo Arcor
Subsequent Event
Ownership percentage after transaction	51.00%
Number of manufacturing facilities contributed \| facility	3
Joint Venture \| Affiliate of Ingredion
Subsequent Event
Ownership percentage after transaction	49.00%
Joint Venture \| Ingredion Argentina S.A.
Subsequent Event
Number of manufacturing facilities contributed \| facility	2