Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Provision for Income Taxes

The components of the provision for income taxes for the twelve months ended December 31, 2019, 2018 and 2017 were as follows:

In millions	2019			2018			2017
U.S. federal income taxes:
Current	$	356		$	373		$	1,117
Deferred	(26		)	(15		)	(10		)
Total U.S. federal income taxes	330			358			1,107
Foreign income taxes:
Current	302			358			296
Deferred	53			49			102
Total foreign income taxes	355			407			398
State income taxes:
Current	77			66			106
Deferred	5			—			(28		)
Total state income taxes	82			66			78
Total provision for income taxes	$	767		$	831		$	1,583

Schedule of Income Before Taxes for Domestic and Foreign Operations

Income before taxes for domestic and foreign operations for the twelve months ended December 31, 2019, 2018 and 2017 was as follows:

In millions	2019		2018		2017
Domestic	$	1,774	$	1,774	$	1,806
Foreign	1,514		1,620		1,464
Total income before taxes	$	3,288	$	3,394	$	3,270

Schedule of Reconciliation Between U.S. Federal Statutory Tax Rate and Effective Tax Rate

The reconciliation between the U.S. federal statutory tax rate and the effective tax rate for the twelve months ended December 31, 2019, 2018 and 2017 was as follows:

	2019		2018		2017
U.S. federal statutory tax rate	21.0	%	21.0	%	35.0	%
U.S. tax effect of foreign earnings	1.1		1.5		0.5
Tax effect of U.S. federal tax law change	—		(0.1	)	20.1
State income taxes, net of U.S. federal tax benefit	1.7		1.6		1.2
Differences between U.S. federal statutory and foreign tax rates	2.0		2.1		(3.5	)
Nontaxable foreign interest income	(1.4	)	(1.7	)	(1.7	)
Tax effect of foreign dividends	0.2		1.0		0.4
Tax relief for U.S. manufacturers	—		—		(1.4	)
Excess tax benefits from stock-based compensation	(0.9	)	(0.3	)	(1.5	)
Other, net	(0.4	)	(0.6	)	(0.7	)
Effective tax rate	23.3	%	24.5	%	48.4	%

Schedule of Components of Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities as of December 31, 2019 and 2018 were as follows:

	2019						2018
In millions	Asset			Liability			Asset			Liability
Goodwill and intangible assets	$	202		$	(453	)	$	194		$	(484	)
Inventory reserves, capitalized tax cost and LIFO inventory	29			(3		)	30			(3		)
Investments	16			(158		)	19			(171		)
Plant and equipment	17			(74		)	17			(72		)
Accrued expenses and reserves	42			—			36			—
Employee benefit accruals	176			—			186			—
Foreign tax credit carryforwards	7			—			8			—
Net operating loss carryforwards	419			—			451			—
Capital loss carryforwards	80			—			89			—
Allowances for uncollectible accounts	9			—			10			—
Pension liabilities	—			(15		)	—			(19		)
Unrealized loss (gain) on foreign debt instruments	—			(57		)	—			(45		)
Operating leases	45			(45		)	—			—
Other	32			(13		)	32			(13		)
Gross deferred income tax assets (liabilities)	1,074			(818		)	1,072			(807		)
Valuation allowances	(408		)	—			(418		)	—
Total deferred income tax assets (liabilities)	$	666		$	(818	)	$	654		$	(807	)

Schedule of Net Operating Loss Carryforwards

As of December 31, 2019, the Company had net operating loss carryforwards available to offset future taxable income in the U.S. and certain foreign jurisdictions, which expire as follows:

	Gross Carryforwards Related
In millions	to Net Operating Losses
2020	$	86
2021	80
2022	25
2023	7
2024	49
2025-2045	117
Do not expire	1,378
Total gross carryforwards related to net operating losses	$	1,742

Schedule of Changes in Amount of Unrecognized Tax Benefits

The changes in the amount of unrecognized tax benefits for the twelve months ended December 31, 2019, 2018 and 2017 were as follows:

In millions	2019			2018			2017
Beginning balance	$	297		$	285		$	210
Additions based on tax positions related to the current year	6			3			42
Additions for tax positions of prior years	13			49			100
Reductions for tax positions of prior years	(14		)	(31		)	(24		)
Settlements	(5		)	(5		)	(53		)
Foreign currency translation	(1		)	(4		)	10
Ending balance	$	296		$	297		$	285

Summary of Open Tax Years

The following table summarizes the open tax years for the Company’s major jurisdictions:

Jurisdiction	Open Tax Years
United States – Federal	2016-2019
United Kingdom	2017-2019
Germany	2012-2019
France	2016-2019
Australia	2013-2019