Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of Income before Income Taxes

The components of Income before Income Taxes follow:

(In millions)	2017		2016		2015
U.S.	$	394	$	595	$	284
Foreign	484		612		324
	$	878	$	1,207	$	608

Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax (Benefit) Expense

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

(In millions)	2017			2016			2015
U.S. Federal income tax expense at the statutory rate of 35%	$	307		$	422		$	213
Deferred tax impact of enacted tax rate and law changes	389			(2		)	(2		)
Provision for undistributed foreign earnings, net	(162		)	—			—
Transition tax (repatriation)	77			—			—
Adjustment for foreign income taxed at different rates	(55		)	(51		)	(39		)
U.S. credits (R&D, foreign tax credits) and benefits offset to OCI	(23		)	(163		)	(72		)
Domestic production activities deduction	(16		)	(3		)	—
State income taxes, net of U.S. Federal benefit	9			16			10
Net foreign losses (income) with no tax due to valuation allowances	(7		)	8			(19		)
Net establishment (resolution) of uncertain tax positions	(6		)	3			(13		)
Net establishment (release) of U.S. valuation allowance	5			39			(8		)
Net establishment (release) of foreign valuation allowances	1			(354		)	4
Deconsolidation of Venezuelan subsidiary	—			—			157
Other	(6		)	8			1
United States and Foreign Tax (Benefit) Expense	$	513		$	(77	)	$	232

Components of United States and Foreign Tax (Benefit) Expense

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

(In millions)	2017			2016			2015
Current:
Federal	$	(22	)	$	(25	)	$	—
Foreign	147			175			154
State	3			2			(1		)
	128			152			153
Deferred:
Federal	408			77			74
Foreign	(8		)	(328		)	5
State	(15		)	22			—
	385			(229		)	79
United States and Foreign Tax (Benefit) Expense	$	513		$	(77	)	$	232

Deferred Tax Assets and Liabilities

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

(In millions)	2017			2016
Tax loss carryforwards and credits	$	1,515		$	1,503
Capitalized research and development expenditures	402			666
Accrued expenses deductible as paid	297			456
Postretirement benefits and pensions	223			294
Rationalizations and other provisions	36			36
Vacation and sick pay	24			37
Investment and receivables related to Venezuelan deconsolidation	80			134
Alternative minimum tax credit carryforwards	—			43
Other	85			106
	2,662			3,275
Valuation allowance	(318		)	(326		)
Total deferred tax assets	2,344			2,949
Property basis differences	(414		)	(482		)
Tax on undistributed earnings of subsidiaries	(22		)	(138		)
Total net deferred tax assets	$	1,908		$	2,329

Reconciliation of Unrecognized Tax Benefits

Reconciliation of Unrecognized Tax Benefits
(In millions)	2017			2016			2015
Balance at January 1	$	63		$	54		$	81
Increases related to prior year tax positions	2			19			10
Decreases related to prior year tax positions	(2		)	(8		)	(10		)
Settlements	(8		)	(8		)	(14		)
Foreign currency impact	—			6			(15		)
Increases related to current year tax positions	—			1			2
Lapse of statute of limitations	(3		)	(1		)	—
Balance at December 31	$	52		$	63		$	54