Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Geographic Allocation of Income and Provision for Income Taxes

Geographic Allocation of (Loss) Income and Provision for (Benefit from) Income Taxes	Successor						Predecessor
(In millions)	For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017			For the Period January 1 through August 31, 2017			For the Year Ended December 31, 2016
(Loss) Income from continuing operations before income taxes
Domestic	$	(4,496	)	$	(811	)	$	409		$	1,415
Foreign	(297		)	(775		)	1,382			1,308
(Loss) Income from continuing operations before income taxes	$	(4,793	)	$	(1,586	)	$	1,791		$	2,723
Current tax expense (benefit)
Federal	$	(333	)	$	216		$	(563	)	$	4
State and local	5			22			(11		)	9
Foreign	453			187			282			539
Total current tax expense (benefit)	$	125		$	425		$	(292	)	$	552
Deferred tax expense (benefit)
Federal	$	162		$	(2,790	)	$	476		$	22
State and local	(29		)	(48		)	(8		)	(29		)
Foreign	(38		)	(260		)	(27		)	96
Total deferred tax expense (benefit)	$	95		$	(3,098	)	$	441		$	89
Provision for (Benefit from) income taxes on continuing operations	220			(2,673		)	149			641
Net (loss) income from continuing operations	$	(5,013	)	$	1,087		$	1,642		$	2,082

Reconciliation to US Statutory Rate

Reconciliation to U.S. Statutory Rate	Successor				Predecessor
	For the Year Ended December 31, 2018		For the Period September 1 through December 31, 2017		For the Period January 1 through August 31, 2017		For the Year Ended December 31, 2016
Statutory U.S. federal income tax rate	21.0	%	35.0	%	35.0	%	35.0	%
Equity earning effect	0.2		0.9		(0.5	)	(0.8	)
Effective tax rates on international operations - net	0.5		(9.5	)	(11.4	)	(9.2	)
Acquisitions, divestitures and ownership restructuring activities 1, 2, 3	(1.6	)	15.8		5.2		1.9
U.S. research and development credit	0.6		0.4		(0.8	)	(0.7	)
Exchange gains/losses 4	(0.5	)	(1.8	)	(12.9	)	1.9
SAB 118 Impact of Enactment of U.S. Tax Reform5	(2.5	)	126.1
Excess tax benefits from stock compensation6	0.1		0.1		(1.7	)
Tax settlements and expiration of statute of limitations7	0.2		—		(3.8	)	(1.1	)
Goodwill impairment 8	(21.4	)	—		—		—
Other - net	(1.2	)	1.5		(0.8	)	(3.5	)
Effective tax rate	(4.6	)%	168.5	%	8.3	%	23.5	%

1. See Notes 3 and 4 for additional information.

2. Includes a net tax charge of $74 million related to repatriation activities to facilitate the Intended Business Separations for the year ended December 31, 2018.

3. Includes a net tax charge of $25 million and a net tax benefit of $261 million for the year ended December 31, 2018 and the period September 1 through December 31, 2017, respectively, related to an internal legal entity restructuring associated with the Intended Business Separations.

4. Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 8 and Note 20 under the heading Foreign Currency Risk.

5. Reflects a net tax charge of $121 million associated with the company's completion of the accounting for the tax effects of The Act for the year ended December 31, 2018.

6. Reflects the impact of the adoption of ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, which was adopted January 1, 2017 and resulted in the recognition of excess tax benefits related to equity compensation in the (benefit from) provision for income taxes on continuing operations.

7. The period January 1 through August 31, 2017 includes a tax benefit of $53 million for accrued interest reversals (recorded in sundry income (expense) - net).

8. Reflects the impact of the non-tax-deductible impairment charge for the agriculture reporting unit and corresponding $75 million tax charge associated with a valuation allowance recorded against the net deferred tax asset position of a legal entity in Brazil for the year ended December 31, 2018.

Deferred Tax Balances

Deferred Tax Balances at December 31	2018					2017
(In millions)	Assets			Liabilities		Assets			Liabilities
Property	$	—		$	1,043	$	—		$	1,160
Tax loss and credit carryforwards1	1,390			—		1,452			—
Accrued employee benefits	1,802			169		1,988			68
Other accruals and reserves	323			51		333			39
Intangibles	320			5,876		284			6,286
Inventory	129			371		130			597
Long-term debt	24			—		109			—
Investments	114			581		23			453
Unrealized exchange gains/losses	—			141		—			71
Other – net	280			141		260			121
Subtotal	$	4,382		$	8,373	$	4,579		$	8,795
Valuation allowances1,2,3	(1,087		)	—		(1,140		)	—
Total	$	3,295		$	8,373	$	3,439		$	8,795
Net Deferred Tax Liability	$	(5,078	)			$	(5,356	)

1. Primarily related to the realization of recorded tax benefits on tax loss carryforwards from operations in the United States, Brazil, and Luxembourg.    

2. The company has corrected its valuation allowance (with a corresponding reduction in tax loss and credit carryforwards) in the amount of $238 million as a result of a change in the Delaware state apportionment methodology.

3. During the year ended December 31, 2018, the company established a full valuation allowance against the net deferred tax asset position of a legal entity in Brazil due to revised financial projections, resulting in tax expense of $75 million. See Note 14 for additional information.

Operating Loss and Tax Credit Carryforwards

Operating Loss and Tax Credit Carryforwards	Deferred Tax Asset
(In millions)	2018		2017
Operating loss carryforwards
Expire within 5 years	$	76	$	42
Expire after 5 years or indefinite expiration	1,137		1,245
Total operating loss carryforwards	$	1,213	$	1,287
Tax credit carryforwards
Expire within 5 years	$	8	$	10
Expire after 5 years or indefinite expiration	169		155
Total tax credit carryforwards	$	177	$	165
Total Operating Loss and Tax Credit Carryforwards	$	1,390	$	1,452

Total Gross Unrecognized Tax Benefits

Total Gross Unrecognized Tax Benefits 1	Successor						Predecessor
	For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017			For the Period January 1 through August 31, 2017			For the Year Ended December 31, 2016
(In millions)
Total unrecognized tax benefits as of beginning of period	$	741		$	709		$	596		$	906
Decreases related to positions taken on items from prior years	(44		)	(2		)	(19		)	(46		)
Increases related to positions taken on items from prior years	74			9			3			33
Increases related to positions taken in the current year	9			28			49			55
Settlement of uncertain tax positions with tax authorities	(13		)	1			(6		)	(314		)
Decreases due to expiration of statutes of limitations	(5		)	(5		)	(86		)	(41		)
Exchange (gain) loss	(13		)	1			1			3
Total unrecognized tax benefits as of end of period	$	749		$	741		$	538		$	596
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	157		$	253		$	188		$	253
Total amount of interest and penalties (benefit) recognized in Provision for income taxes on continuing operations	$	11		$	1		$	(27	)	$	10
Total accrual for interest and penalties associated with unrecognized tax benefits	$	45		$	47		$	40		$	98

1. The prior year amounts have been revised for amounts previously omitted.

Tax Year Subject to Examination

Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31,	Earliest Open Year
Jurisdiction
Brazil	2012
Canada	2013
China	2014
Denmark	2012
Germany	2006
India	2001
The Netherlands	2017
Switzerland	2014
United States:
Federal income tax	2012
State and local income tax	2004