Income Taxes (Tables)

Pretax earnings from continuing operations consist of the following:

The principal components of income tax expense follow:

Reconciliations of the U.S. federal statutory income tax rate to the Company's effective tax rate follow:



	2014		2015		2016
Federal statutory rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of federal tax benefit	0.8		0.7		0.5
Non-U.S. rate differential	(3.6	)	(2.4	)	(2.9	)
Non-U.S. tax holidays	(0.8	)	(0.9	)	(1.1	)
U.S. manufacturing deduction	(1.5	)	(1.2	)	(1.8	)
Gains on divestitures	—		1.8		—
Other	—		0.3		0.4
Effective income tax rate	29.9	%	33.3	%	30.1	%



	2015			2016
Unrecognized tax benefits, beginning	$	120		84
Additions for current year tax positions	7			12
Additions for prior year tax positions	8			16
Reductions for prior year tax positions	(9		)	(13	)
Reductions for settlements with tax authorities	—			(4	)
Reductions for expiration of statutes of limitations	(42		)	(9	)
Unrecognized tax benefits, ending	$	84		86

The principal items that gave rise to deferred income tax assets and liabilities follow:



	2015			2016
Deferred tax assets:
Net operating losses and tax credits	$	138		164
Accrued liabilities	245			277
Postretirement and postemployment benefits	86			82
Employee compensation and benefits	168			206
Pensions	164			271
Other	161			158
Total	$	962		1,158

Valuation allowances	$	(109	)	(132	)

Deferred tax liabilities:
Intangibles	$	(500	)	(510	)
Property, plant and equipment	(236		)	(239	)
Other	(51		)	(51	)
Total	$	(787	)	(800	)

Net deferred income tax asset	$	66		226