Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Analysis of the Provision for Income Taxes

An analysis of the provision for income taxes follows:

	Year Ended December 31
	2019			2018			2017
Current income taxes
United States	$	215		$	177		$	463
State	94			63			52
Other countries	238			229			330
Total	547			469			845
Deferred income taxes
United States	50			16			(68		)
State	(16		)	22			(3		)
Other countries	(5		)	(36		)	2
Total	29			2			(69		)
Total provision for income taxes	$	576		$	471		$	776

Income before Income Taxes

Income before income taxes is earned in the following tax jurisdictions:

	Year Ended December 31
	2019		2018		2017
United States	$	2,252	$	1,606	$	1,995
Other countries	398		207		996
Total income before income taxes	$	2,650	$	1,813	$	2,991

Deferred Income Tax assets (Liabilities)

Deferred income tax assets and liabilities are composed of the following:

	December 31
	2019			2018
Deferred tax assets
Pension and other postretirement benefits	$	253		$	252
Tax credits and loss carryforwards	411			387
Lease liability	104			—
Other	388			449
	1,156			1,088
Valuation allowances	(248		)	(220		)
Total deferred tax assets	908			868
Deferred tax liabilities
Property, plant and equipment, net	795			789
Investments in subsidiaries	103			102
Goodwill	66			72
Lease asset	105			—
Other	108			143
Total deferred tax liabilities	1,177			1,106
Net deferred tax assets (liabilities)	$	(269	)	$	(238	)

Reconciliation of Income Tax Provision

Presented below is a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective tax rate:

	Year Ended December 31
	2019		2018		2017
U.S. statutory rate applied to income before income taxes	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	2.5		3.7		1.1
Statutory rates other than U.S. statutory rate	0.7		0.2		(3.1	)
Routine tax incentives	(3.5	)	(5.4	)	(2.7	)
Net tax (benefit) cost on foreign income	0.8		1.4		(0.7	)
Net impact of the Tax Act	—		6.4		(2.5	)
Valuation allowance	1.0		1.6		(0.1	)
Nonrecurring capital loss	(1.8	)	—		—
Other - net(a)	1.0		(2.9	)	(1.1	)
Effective income tax rate	21.7	%	26.0	%	25.9	%

(a)

Other - net is composed of numerous items, none of which is greater than 1.05 percent and 1.75 percent of income before income taxes in 2019-2018 and 2017, respectively.

Unrecognized Income Tax Benefits

Presented below is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits:

	2019			2018			2017
Balance at January 1	$	298		$	354		$	321
Gross increases for tax positions of prior years	36			75			50
Gross decreases for tax positions of prior years	(13		)	(86		)	(23		)
Gross increases for tax positions of the current year	87			41			37
Settlements	(13		)	(70		)	(19		)
Other	(12		)	(16		)	(12		)
Balance at December 31	$	383		$	298		$	354

Summary of Income Tax Examinations

As of December 31, 2019, the following tax years remain subject to examination for the major jurisdictions where we conduct business:

Jurisdiction	Years
United States	2016 to 2019
United Kingdom	2016 to 2019
Brazil	2014 to 2019
Australia	2014 to 2019
China	2009 to 2019