Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Earnings from Continuing Operations Before Income Taxes

Components of earnings (loss) from continuing operations before income taxes are as follows:

Years ended December 31	2016		2015		2014
United States	$	651	$	725	$	(1,355	)
Other nations	193		192		194
	$	844	$	917	$	(1,161	)

Income Tax Expense (Benefit)

Components of income tax expense (benefit) are as follows:

Years ended December 31	2016			2015			2014
United States	$	20		$	71		$	14
Other nations	31			30			67
States (U.S.)	18			13			11
Current income tax expense	69			114			92
United States	180			154			(503		)
Other nations	36			(13		)	(11		)
States (U.S.)	(3		)	19			(43		)
Deferred income tax expense (benefit)	213			160			(557		)
Total income tax expense (benefit)	$	282		$	274		$	(465	)

Federal Statutory Tax Rate and Income Tax Expense

Differences between income tax expense (benefit) computed at the U.S. federal statutory tax rate of 35% and income tax expense (benefit) as reflected in the consolidated statements of operations are as follows:

Years ended December 31	2016					2015					2014
Income tax expense (benefit) at statutory rate	$	295		35.0	%	$	321		35.0	%	$	(406	)	35.0	%
Tax on non-U.S. earnings	(25		)	(3.0	)%	(46		)	(5.0	)%	(27		)	2.3	%
State income taxes, net of federal benefit	26			3.1	%	24			2.6	%	(30		)	2.6	%
Recognition of previously unrecognized income tax benefits	(13		)	(1.6	)%	1			0.1	%	(29		)	2.5	%
Other provisions	(2		)	(0.4	)%	14			1.6	%	9			(0.7	)%
Valuation allowances	(7		)	(0.8	)%	(9		)	(1.0	)%	55			(4.7	)%
Section 199 deduction	(15		)	(1.7	)%	(19		)	(2.1	)%	(12		)	1.0	%
Tax on undistributed non-U.S. earnings	25			3.0	%	(7		)	(0.8	)%	(19		)	1.6	%
Research credits	(2		)	(0.2	)%	(5		)	(0.5	)%	(6		)	0.5	%
	$	282		33.4	%	$	274		29.9	%	$	(465	)	40.1	%

Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets (liabilities) are as follows: 

December 31	2016			2015
Inventory	$	29		$	30
Accrued liabilities and allowances	136			136
Employee benefits	693			612
Capitalized items	169			357
Tax basis differences on investments	7			14
Depreciation tax basis differences on fixed assets	74			19
Undistributed non-U.S. earnings	(27		)	(19		)
Tax carryforwards	927			1,028
Business reorganization	36			20
Warranty and customer liabilities	21			20
Deferred revenue and costs	122			146
Valuation allowances	(118		)	(129		)
Deferred charges	37			41
Other	(8		)	3
	$	2,098		$	2,278

Summary of Tax Credit Carryforwards

Tax carryforwards are as follows: 

December 31, 2016	Gross Tax Loss		Tax Effected		Expiration Period
United States:
U.S. tax losses	$	51	$	18	2022-2033
Foreign tax credits	—		510		2018-2023
General business credits	—		115		2026-2036
Minimum tax credits	—		101		Unlimited
State tax losses	1,174		34		2017-2029
State tax credits	—		26		2018-2030
Non-U.S. Subsidiaries:
Japan tax losses	98		30		2017-2021
Germany tax losses	53		15		Unlimited
United Kingdom tax losses	84		14		Unlimited
Singapore tax losses	40		7		Unlimited
Other subsidiaries tax losses	—		26		Various
Spain tax credits	—		23		Various
Other subsidiaries tax credits	—		8		Various
			$	927

Unrecognized Tax Benefits, Including Those Attributable to Discontinued Operations

A roll-forward of unrecognized tax benefits is as follows: 

	2016			2015
Balance at January 1	$	88		$	96
Additions based on tax positions related to current year	—			2
Additions for tax positions of prior years	2			4
Reductions for tax positions of prior years	(15		)	(9		)
Settlements and agreements	(3		)	(3		)
Lapse of statute of limitations	(4		)	(2		)
Balance at December 31	$	68		$	88

Summary of Open Tax Years by Major Jurisdiction

A summary of open tax years by major jurisdiction is presented below: 

Jurisdiction	Tax Years
United States	2008-2016
China	2002-2016
France	2010-2016
Germany	2011-2016
India	1997-2016
Israel	2012-2016
Japan	2011-2016
Malaysia	2010-2016
Singapore	2015-2016
United Kingdom	2015-2016