Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The components of Income before Income Taxes follow:

A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax (Benefit) Expense follows:



(In millions)	2015			2014			2013
U.S. Federal income tax expense (benefit) at the statutory rate of 35%	$	213		$	240		$	284
Deconsolidation of Venezuelan subsidiary	157			—			—
U.S. credits (R&D, foreign tax credits) and benefits offset to OCI	(72		)	—			—
Adjustment for foreign income taxed at different rates	(39		)	(37		)	(2		)
Net foreign losses (income) with no tax benefit due to valuation allowances	(19		)	49			42
Net (resolution) establishment of uncertain tax positions	(13		)	3			10
State income taxes, net of U.S. Federal benefit	10			12			—
Release of U.S. valuation allowance	(8		)	(2,318		)	—
Net establishment (release) of foreign valuation allowances	4			51			(8		)
Deferred tax impact of enacted tax rate and law changes	(2		)	33			(13		)
Provision for undistributed foreign earnings	—			131			—
U.S. (income) with no tax due to valuation allowance	—			—			(136		)
Poland special enterprise zone tax credit	—			—			(42		)
Other	1			2			3
United States and Foreign Tax (Benefit) Expense	$	232		$	(1,834	)	$	138

The components of United States and Foreign Tax (Benefit) Expense by taxing jurisdiction, follow:



(In millions)	2015			2014			2013
Current:
Federal	$	—		$	—		$	(6	)
Foreign	154			135			176
State	(1		)	1			2
	153			136			172
Deferred:
Federal	74			(2,103		)	2
Foreign	5			84			(36		)
State	—			49			—
	79			(1,970		)	(34		)
United States and Foreign Tax (Benefit) Expense	$	232		$	(1,834	)	$	138

Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow:



(In millions)	2015			2014
Tax loss carryforwards and credits	$	1,415		$	1,550
Capitalized research and development expenditures	655			622
Accrued expenses deductible as paid	501			583
Postretirement benefits and pensions	288			388
Investment and receivables related to Venezuelan deconsolidation	157			—
Alternative minimum tax credit carryforwards⁽¹⁾	78			85
Rationalizations and other provisions	22			49
Vacation and sick pay	37			36
Other	121			100
	3,274			3,413
Valuation allowance	(621		)	(632		)
Total deferred tax assets	2,653			2,781
Property basis differences	(459		)	(448		)
Tax on undistributed earnings of subsidiaries	(144		)	(170		)
Total net deferred tax assets	$	2,050		$	2,163


(1)	Unlimited carryforward period.



Reconciliation of Unrecognized Tax Benefits
(In millions)	2015			2014			2013
Balance at January 1	$	81		$	88		$	82
Increases related to prior year tax positions	10			15			27
Decreases related to prior year tax positions	(10		)	(12		)	(6		)
Settlements	(14		)	(6		)	(9		)
Foreign currency impact	(15		)	(4		)	(6		)
Increases related to current year tax positions	2			—			1
Lapse of statute of limitations	—			—			(1		)
Balance at December 31	$	54		$	81		$	88