Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of Income before Income Taxes

The components of Income before Income Taxes follow:

(In millions)	2018		2017		2016
U.S.	$	439	$	394	$	595
Foreign	572		484		612
	$	1,011	$	878	$	1,207

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 Expense (Benefit) follows:

(In millions)	2018			2017			2016
U.S. federal income tax expense at the statutory rate of 21% (35% for 2017 and 2016)	$	212		$	307		$	422
Adjustment for foreign income taxed at different rates	30			(55		)	(51		)
Net establishment of U.S. valuation allowance	25			5			39
U.S. charges (benefits) related to foreign tax credits and R&D	20			(23		)	(163		)
Net establishment (resolution) of uncertain tax positions	18			(6		)	3
Provision for undistributed foreign earnings, net	(9		)	(162		)	—
Transition tax	8			77			—
Net foreign losses (income) with no tax due to valuation allowances	7			(7		)	8
Net establishment (release) of foreign valuation allowances	(5		)	1			(354		)
State income taxes, net of U.S. federal benefit	(1		)	9			16
Domestic production activities deduction	(1		)	(16		)	(3		)
Other	(1		)	(6		)	8
Deferred tax impact of enacted tax rate and law changes	—			389			(2		)
United States and Foreign Tax Expense (Benefit)	$	303		$	513		$	(77	)

Components of United States and Foreign Tax (Benefit) Expense

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

(In millions)	2018			2017			2016
Current:
Federal	$	(15	)	$	(22	)	$	(25	)
Foreign	188			166			175
State	(1		)	3			2
	172			147			152
Deferred:
Federal	120			389			77
Foreign	6			(8		)	(328		)
State	5			(15		)	22
	131			366			(229		)
United States and Foreign Tax Expense (Benefit)	$	303		$	513		$	(77	)

Deferred Tax Assets and Liabilities

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

(In millions)	2018			2017
Tax loss carryforwards and credits	$	1,473		$	1,515
Capitalized research and development expenditures	404			402
Accrued expenses deductible as paid	261			297
Postretirement benefits and pensions	207			223
Deferred interest deductions	40			—
Rationalizations and other provisions	26			36
Vacation and sick pay	23			24
Investment and receivables related to Venezuelan deconsolidation	—			80
Other	111			85
	2,545			2,662
Valuation allowance	(317		)	(318		)
Total deferred tax assets	2,228			2,344
Property basis differences	(475		)	(414		)
Tax on undistributed earnings of subsidiaries	(1		)	(22		)
Total net deferred tax assets	$	1,752		$	1,908

Reconciliation of Unrecognized Tax Benefits

Reconciliation of Unrecognized Tax Benefits
(In millions)	2018			2017			2016
Balance at January 1	$	52		$	63		$	54
Increases related to prior year tax positions	9			2			19
Decreases related to prior year tax positions	(1		)	(2		)	(8		)
Settlements	(2		)	(8		)	(8		)
Foreign currency impact	(5		)	—			6
Increases related to current year tax positions	21			—			1
Lapse of statute of limitations	(3		)	(3		)	(1		)
Balance at December 31	$	71		$	52		$	63