INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Before Income Tax Expense by Category

			As Restated
years ended December 31 (in millions)	2019		2018		2017
United States	$	(586)	$	7	$	(320)
International	1,556		1,610		1,420
Income from continuing operations before income taxes	$	970	$	1,617	$	1,100

Income Tax Expense

			As Restated
years ended December 31 (in millions)	2019		2018		2017
Current
United States
Federal	$	8	$	21	$	8
State and local	3		(1)		11
International	258		308		261
Current income tax expense	269		328		280
Deferred
United States
Federal	(140)		(228)		230
State and local	(29)		—		1
International	(141)		(35)		(20)
Deferred income tax expense (benefit)	(310)		(263)		211
Income tax expense (benefit)	$	(41)	$	65	$	491

Deferred Tax Assets and Liabilities

			As Restated
as of December 31 (in millions)	2019		2018
Deferred tax assets
Accrued liabilities and other	$	209	$	227
Pension and other postretirement benefits	258		222
Tax credit and net operating loss carryforwards	928		862
Swiss tax reform net asset basis step-up	159		—
Operating lease liabilities	153		—
Valuation allowances	(420)		(310)
Total deferred tax assets	1,287		1,001
Deferred tax liabilities
Subsidiaries’ unremitted earnings	57		43
Long-lived assets and other	649		690
Operating lease right-of-use assets	152		—
Total deferred tax liabilities	858		733
Net deferred tax asset	$	429	$	268

Income Tax Expense (Benefit) Reconciliation

Income Tax Expense (Benefit) Reconciliation

			As Restated
years ended December 31 (in millions)	2019		2018		2017
Income tax expense at U.S. statutory rate	$	204	$	340	$	383
Tax incentives	(140)		(161)		(139)
State and local taxes, net of federal benefit	(17)		5		(6)
Impact of foreign taxes	65		122		(41)
Swiss tax reform net asset basis step-up	(159)		—		—
Deferred tax revaluation due to 2017 Tax Act and foreign tax reform	(19)		(8)		(283)
Transition tax due to 2017 Tax Act	(16)		(5)		529
U.S. valuation allowance due to 2017 Tax Act	—		(194)		339
Other valuation allowances	110		21		(6)
Stock compensation windfall tax benefits	(54)		(40)		(56)
Foreign tax credits	—		—		(246)
Research and development tax credits	(13)		(17)		(5)
Other, net	(2)		2		22
Income tax expense (benefit)	$	(41)	$	65	$	491

Reconciliation of Unrecognized Tax Benefits

The following table is a reconciliation of our unrecognized tax benefits, including those related to discontinued operations, for the years ended December 31, 2019, 2018 and 2017. 

as of and for the years ended (in millions)	2019		2018		2017
Balance at beginning of the year	$	127	$	108	$	82
Increase associated with tax positions taken during the current year	8		33		33
Increase (decrease) associated with tax positions taken during a prior year	(3)		13		2
Settlements	(20)		(5)		(6)
Decrease associated with lapses in statutes of limitations	(1)		(22)		(3)
Balance at end of the year	$	111	$	127	$	108