Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block]



(millions)	2016			2015			2014
Income before income taxes
United States	$	830		$	551		$	502
Foreign	97			222			323
	927			773			825
Income taxes
Currently payable
Federal	173			212			301
State	26			42			36
Foreign	60			74			103
	259			328			440
Deferred
Federal	16			(136		)	(186		)
State	6			(14		)	(14		)
Foreign	(48		)	(19		)	(54		)
	(26		)	(169		)	(254		)
Total income taxes	$	233		$	159		$	186

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]



	2016		2015		2014
U.S. statutory income tax rate	35.0		35.0	%	35.0	%
Foreign rates varying from 35%	(5.0	)	(9.6	)	(7.9	)
Excess tax benefits on share-based compensation	(3.7	)	—		—
State income taxes, net of federal benefit	2.4		2.3		1.7
Cost (benefit) of remitted and unremitted foreign earnings	0.1		(4.4	)	(0.1	)
U.S. deduction for qualified production activities	(2.8	)	(2.3	)	(2.8	)
Statutory rate changes, deferred tax impact	(0.1	)	(0.8	)	(0.4	)
Venezuela deconsolidation	1.8		—		—
Venezuela remeasurement	0.4		5.0		—
VIE deconsolidation	—		(2.3	)	—
Other	(2.9	)	(2.3	)	(2.9	)
Effective income tax rate	25.2	%	20.6	%	22.6	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]



	Deferred tax assets						Deferred tax liabilities
(millions)	2016			2015			2016		2015
U.S. state income taxes	$	—		$	13		$	34	$	43
Advertising and promotion-related	17			15			—		—
Wages and payroll taxes	42			21			—		—
Inventory valuation	28			31			—		—
Employee benefits	403			366			—		—
Operating loss and credit carryforwards	119			55			—		—
Hedging transactions	—			43			—		—
Depreciation and asset disposals	—			—			318		345
Trademarks and other intangibles	—			—			602		576
Deferred compensation	38			35			—		—
Stock options	41			42			—		—
Other	42			86			—		—
	730			707			954		964
Less valuation allowance	(131		)	(63		)	—		—
Total deferred taxes	$	599		$	644		$	954	$	964
Net deferred tax asset (liability)	$	(355	)	$	(320	)
Classified in balance sheet as:
Other current assets	$	—		$	227
Other current liabilities	—			(9		)
Other assets	170			147
Other liabilities	(525		)	(685		)
Net deferred tax asset (liability)	$	(355	)	$	(320	)

Summary of Valuation Allowance [Table Text Block]



(millions)	2016			2015			2014
Balance at beginning of year	$	63		$	51		$	61
Additions charged to income tax expense (a)	70			23			9
Reductions credited to income tax expense	(4		)	(7		)	(3		)
Currency translation adjustments	2			(4		)	(16		)
Balance at end of year	$	131		$	63		$	51

(a) During 2016, the Company increased its deferred tax assets by $34 million relating to a revision of 2014 foreign loss carryforwards. The entire adjustment of $34 million was offset by a corresponding adjustment in the valuation allowance because it is not expected to be used in the future. These adjustments are not considered material to the previously issued or current year financial statements. Also during 2016, the Company increased its deferred tax assets by $26 million related to a foreign loss carryforward. The entire amount was offset by a corresponding valuation allowance because it is not expected to be used in the future.

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]



(millions)	2016			2015			2014
Balance at beginning of year	$	73		$	78		$	79
Tax positions related to current year:
Additions	6			8			7
Tax positions related to prior years:
Additions	1			9			10
Reductions	(14		)	(12		)	(12		)
Settlements	1			(10		)	(2		)
Lapses in statutes of limitation	(4		)	—			(4		)
Balance at end of year	$	63		$	73		$	78