Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

For the years ended December 31, income (loss) from continuing operations before income taxes consisted of the following:



In millions	2017		2016		2015
Income (loss) before income taxes
United States	$	149	$	35	$	(24	)
Foreign	333		344		(71		)
Total income (loss) from continuing operations before income taxes	$	482	$	379	$	(95	)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

For the years ended December 31, income tax expense (benefit) consisted of the following:



In millions	2017			2016			2015
Income tax expense (benefit)
Current
Federal	$	14		$	18		$	(7	)
State	2			4			1
Foreign	54			60			37
Deferred
Federal	178			12			23
State	(3		)	1			(6		)
Foreign	(3		)	(3		)	7
Total income tax expense (benefit)	$	242		$	92		$	55

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

The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31:



In millions	2017			2016			2015
Income tax expense (benefit) at the U.S. federal tax rate of 35%	$	169		$	133		$	(33	)
Foreign income tax differential	(38		)	(26		)	33
U.S. permanent book/tax differences	2			—			(5		)
Tax audit settlements	—			—			(10		)
Change in liability for unrecognized tax benefits	(2		)	(12		)	(7		)
Nondeductible transaction costs	—			—			(1		)
Goodwill impairment	—			—			5
U.S. valuation allowance	—			—			(3		)
U.S. manufacturing deduction	(9		)	(7		)	—
Settlement of UK London pension plan	—			—			77
U.S. Tax Reform	130			—			—
Employee share-based payments	(8		)	—			—
Other, net	(2		)	4			(1		)
Total income tax expense (benefit)	$	242		$	92		$	55

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

Deferred income tax assets and liabilities included in the Consolidated Balance Sheets as of December 31 were as follows:



In millions	2017			2016
Deferred income tax assets
Employee pensions and other benefits	$	230		$	313
Other balance sheet reserves and allowances	185			251
Tax loss and credit carryforwards	525			578
Capitalized research and development	50			99
Property, plant and equipment	6			6
Other	27			38
Total deferred income tax assets	1,023			1,285
Valuation allowance	(415		)	(445		)
Net deferred income tax assets	608			840
Deferred income tax liabilities
Intangibles	129			239
Capitalized software	27			43
Other	16			7
Total deferred income tax liabilities	172			289
Total net deferred income tax assets	$	436		$	551

Summary of Income Tax Contingencies [Table Text Block]

The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended December 31:



In millions	2017			2016			2015
Gross unrecognized tax benefits - January 1	$	183		$	209		$	248
Increases related to tax positions from prior years	3			3			17
Decreases related to tax positions from prior years	(1		)	(34		)	(37		)
Increases related to tax provisions taken during the current year	23			23			35
Settlements with tax authorities	(4		)	(6		)	(33		)
Lapses of statutes of limitation	(8		)	(12		)	(21		)
Total gross unrecognized tax benefits - December 31	$	196		$	183		$	209