Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Provision or benefit for income taxes

The provision or benefit for income taxes is comprised of the following for the years ended December 31:

	2018			2017			2016
Current:
U.S.	$	35		$	(33	)	$	(114	)
Foreign	472			411			325
Total current	507			378			211
Deferred:
U.S.	(24		)	(266		)	(5		)
Foreign	(225		)	(67		)	(33		)
Total deferred	(249		)	(333		)	(38		)
Provision for income taxes	$	258		$	45		$	173

Geographic sources of income before income taxes

The geographic sources of income (loss) before income taxes, inclusive of equity in loss of affiliate are as follows for the years ended December 31:

	2018			2017			2016
U.S.	$	(672	)	$	(1,189	)	$	(487	)
Foreign	1,213			843			845
Income (loss) before income taxes, inclusive of equity in loss of affiliate	$	541		$	(346	)	$	358

Difference between provision and U.S. statutory tax rate

The benefit or provision for income taxes differs from the amount computed by applying the U.S. statutory income tax rate to the loss or income before income taxes for the reasons set forth below for the years ended December 31:

	2018			2017			2016
Income (loss) before income taxes, inclusive of equity in loss of affiliate	$	541		$	(346	)	$	358
Taxes at the U.S. federal statutory income tax rate	114			(121		)	125
Effect of foreign operations	103			(19		)	(2		)
Tax impact of partnership structure	80			171			—
Change in valuation allowances	87			169			28
Tax Cuts and Jobs Act enactment	(107		)	(132		)	—
Other - net	(19		)	(23		)	22
Provision for income taxes	$	258		$	45		$	173
Actual income tax rate	47.7		%	(13.0		)%	48.3		%

Deferred tax assets and liabilities

The tax effects of our temporary differences and carryforwards are as follows at December 31:

	2018			2017
Deferred tax assets:
Receivables	$	117		$	98
Inventory	79			63
Property	191			144
Goodwill and other intangibles	132			—
Employee benefits	97			64
Investment in partnership	228			74
Other accrued expenses	74			91
Operating loss carryforwards	1,525			1,376
Tax credit carryforwards	653			554
Other	232			498
Total deferred income tax asset	3,328			2,962
Valuation allowances	(2,372		)	(2,484		)
Total deferred income tax asset after valuation allowance	956			478
Deferred tax liabilities:
Goodwill and other intangibles	—			(202		)
Undistributed earnings of foreign subsidiaries	(9		)	—
Other	(18		)	(51		)
Total deferred income tax liability	(27		)	(253		)
Net deferred tax asset	$	929		$	225

Rollforward of unrecognized tax benefits and associated interest and penalties

The following table presents the changes in our gross unrecognized tax benefits included in the consolidated and combined statements of financial position.

Asset / (Liability)	2018			2017
Balance at beginning of year	$	(395	)	$	(94	)
Balance acquired from Baker Hughes	(142		)	(326		)
Additions for tax positions of the current year	(21		)	(13		)
Additions for tax positions of prior years	(95		)	(19		)
Reductions for tax positions of prior years	101			32
Settlements with tax authorities	35			14
Lapse of statute of limitations	45			11
Balance at end of year	$	(472	)	$	(395	)