Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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	2018			2017		2016
Income (loss) before income taxes
United States	$	(262	)	$	149	$	35
Foreign	301			333		344
Total income (loss) from continuing operations before income taxes	$	39		$	482	$	379

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	2018			2017			2016
Income tax expense (benefit)
Current
Federal	$	18		$	14		$	18
State	—			2			4
Foreign	42			54			60
Deferred
Federal	(2		)	178			12
State	1			(3		)	1
Foreign	14			(3		)	(3		)
Total income tax expense (benefit)	$	73		$	242		$	92

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	2018			2017			2016
Income tax (benefit) expense at the U.S. federal tax rate of 21% for 2018 and 35% for 2017 and 2016, respectively	$	8		$	169		$	133
Foreign income tax differential	22			(38		)	(26		)
State and local income taxes (net of federal effect)	2			(1		)	3
Other U.S. permanent book/tax differences	—			1			1
Meals and entertainment expense	2			2			1
Cash surrender value received as income	—			—			(1		)
Executive compensation	4			1			1
Employee share-based payments	3			(3		)	3
Change in branch tax status	(9		)	—			—
Goodwill impairment	30			—			—
Research and development tax credits	(6		)	(4		)	(4		)
U.S. manufacturing deduction	—			(9		)	(7		)
U.S. valuation allowance ⁽¹⁾	16			—			—
U.S tax reform	37			130			—
Change in liability for unrecognized tax benefits ⁽¹⁾	(23		)	(2		)	(12		)
Prior period adjustments	(11		)	—			—
Other, net	(2		)	(4		)	—
Total income tax expense (benefit)	$	73		$	242		$	92

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	2018			2017
Deferred income tax assets
Employee pensions and other benefits	$	223		$	230
Other balance sheet reserves and allowances	141			185
Tax loss and credit carryforwards	682			525
Capitalized research and development	53			50
Property, plant and equipment	11			6
Other	38			27
Total deferred income tax assets	1,148			1,023
Valuation allowance	(485		)	(415		)
Net deferred income tax assets	663			608
Deferred income tax liabilities
Intangibles	151			129
Capitalized software	78			27
Other	7			16
Total deferred income tax liabilities	236			172
Total net deferred income tax assets	$	427		$	436

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	2018			2017			2016
Gross unrecognized tax benefits - January 1	$	196		$	183		$	209
Increases related to tax positions from prior years	9			3			3
Decreases related to tax positions from prior years	(50		)	(1		)	(34		)
Increases related to tax provisions taken during the current year	9			23			23
Settlements with tax authorities	(45		)	(4		)	(6		)
Lapses of statutes of limitation	(9		)	(8		)	(12		)
Total gross unrecognized tax benefits - December 31	$	110		$	196		$	183