Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense (benefit) attributable to income (loss) from operations consists of:



	Current		Deferred			Total
Year ended December 31, 2017:
United States federal	$	—	$	—		$	—
State and local	—		—			—
Non-U.S. jurisdictions	24		(9		)	15
	$	24	$	(9	)	$	15
Year ended December 31, 2016:
United States federal	$	—	$	(10	)	$	(10	)
State and local	—		—			—
Non-U.S. jurisdictions	35		(7		)	28
	$	35	$	(17	)	$	18
Year ended December 31, 2015:
United States federal	$	—	$	—		$	—
State and local	—		—			—
Non-U.S. jurisdictions	19		(6		)	13
	$	19	$	(6	)	$	13

The domestic and foreign components of income (loss) before income taxes are as follows:



	MPM HOLDINGS INC.
	Year Ended December 31,
	2017			2016			2015
Domestic	$	(129	)	$	(118	)	$	(92	)
Foreign	144			(28		)	20
Total	$	15		$	(146	)	$	(72	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income tax expense attributable to income (loss) before income taxes was $15, $18, and $13 for the year ended December 31, 2017, 2016, and 2015, respectively, and differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pre-tax loss from continuing operations as a result of the following:



	Year Ended December 31,
	2017			2016			2015
Income tax expense:
Computed expected tax (benefit) expense	$	6		$	(50	)	$	(25	)
Increase (reduction) in income taxes resulting from:
Tax rate changes	113			(6		)	(3		)
Non-U.S. tax rate differential	(8		)	(4		)	(1		)
Branch accounting effect	32			(17		)	7
Withholding taxes	2			3			3
Valuation allowance	(130		)	76			33
Permanent differences	5			(1		)	3
Reserves for uncertain tax positions	(5		)	17			(4		)
Total	$	15		$	18		$	13

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are presented below:



	Domestic						Foreign
	2017			2016			2017			2016
Deferred tax assets:
Inventory	$	7		$	12		$	3		$	5
Employee compensation	8			12			3			3
Unrealized foreign currency loss	10			13			3			1
Amortization	—			14			10			14
Depreciation	—			—			2			2
Pension	81			131			41			40
Net operating losses	110			132			120			102
Branch accounting future benefit	14			26			—			—
Reserves and accruals	11			23			7			8
Deferred interest deductions	—			—			55			61
Amortizable financing costs	3			8			—			—
Other	—			—			3			3
Total gross deferred tax assets	244			371			247			239
Less valuation allowance	(181		)	(297		)	(190		)	(187		)
Net deferred tax assets	63			74			57			52
Deferred tax liabilities:
Inventory	—			—			3			3
Reserves and accruals	—			—			1			1
Amortization	13			—			30			32
Depreciation	49			72			51			54
Withholding taxes and other	1			2			21			19
Total deferred tax liabilities	63			74			106			109
Net deferred tax liability	$	—		$	—		$	(49	)	$	(57	)

Net Operating Loss Schedule [Table Text Block]

NOL Schedule



Country	NOL Value
United States	$	473
Germany	293
Japan	63
Italy	19
Thailand	10
Other	1
Total	$	859

Summary of Income Tax Contingencies [Table Text Block]

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



Balance at December 31, 2015	$	36

Additions for tax positions of the current year	6
Additions for tax positions of the prior years	8
Reductions for tax positions of prior years	(2		)
Settlements	(5		)
Statute of limitations expiration	(4		)
Foreign currency translation	—
Balance at December 31, 2016	$	39

Additions for tax positions of the current year	3
Additions for tax positions of the prior years	1
Reductions for tax positions of prior years	(10		)
Settlements	—
Statute of limitations expiration	(4		)
Foreign currency translation	2
Balance at December 31, 2017	$	31