Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The provision for income taxes by taxing jurisdiction and by significant components consisted of the following:

($ in millions)	2017			2016			2015
	As Restated			As Restated
Current
U.S. federal		$179			($251	)		$132
U.S. state and local	49			(12		)	20
Foreign	349			306			261
Total current income tax expense		$577			$43			$413
Deferred
U.S. federal		$107			$173			$31
U.S. state and local	(16		)	(10		)	6
Foreign	(53		)	8			(37		)
Total deferred income tax expense		$38			$171			$—
Total income tax expense		$615			$214			$413

Reconciliation of Statutory U.S. Corporate Federal Income Tax Rate to Effective Income Tax Rate

A reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective tax rate follows:

	2017		2016		2015
	As Restated		As Restated
U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
Changes in rate due to:
U.S. tax cost - Tax Cuts & Jobs Act	11.0		—		—
U.S./foreign tax differential	(9.3	)	(17.7	)	(8.2	)
U.S. current tax benefit on foreign exchange realization	(4.9	)	(3.0	)	—
U.S. tax incentives	(2.3	)	(3.7	)	(1.9	)
U.S. tax (benefit) cost on foreign dividends	(1.9	)	0.4		(1.0	)
U.S. state and local taxes	1.1		(1.8	)	1.0
U.S. deferred tax benefit on foreign income	(0.6	)	(3.1	)	(4.1	)
Asbestos charge	—		19.1		—
Other	2.6		2.3		2.9
Effective income tax rate	30.7	%	27.5	%	23.7	%

Net deferred income tax assets and liabilities

($ in millions)	2017			2016
				As Restated
Deferred income tax assets related to
Employee benefits		$399			$606
Contingent and accrued liabilities	164			263
Operating loss and other carry-forwards	221			197
Inventories	6			14
Property	51			49
Other	135			100
Valuation allowance	(173		)	(119		)
Total		$803			$1,110
Deferred income tax liabilities related to
Property		$314			$349
Intangibles	578			647
Employee benefits	11			4
Derivatives	1			6
Undistributed foreign earnings	24			189
Other	20			146
Total		$948			$1,341
Deferred income tax (liabilities) assets – net		($145	)		($231	)

Summary of Operating Loss Carryforwards

($ in millions)	2017		2016		Expiration
Available net operating loss carryforwards:
Indefinite expiration		$447		$376	NA
Definite expiration	247		118		2018 - 2030
Total		$694		$494	NA
Net operating loss carryforwards, tax effected		$210		$140	NA
Income tax credit carryforwards		$9		$57	2018 - 2027

Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits (excluding interest and penalties) as of December 31 follows:

($ in millions)	2017			2016			2015
January 1		$94			$82			$71
Current year tax positions - additions	37			25			14
Prior year tax positions - additions	26			8			5
Pre-acquisition unrecognized tax benefits	—			—			4
Prior year tax positions - reductions	—			(11		)	(3		)
Statute of limitations expirations	(8		)	(8		)	(1		)
Settlements	(10		)	—			(3		)
Foreign currency translation	9			(2		)	(5		)
December 31		$148			$94			$82

Interest and penalties

($ in millions)	2017		2016		2015
Accrued interest and penalties related to unrecognized tax benefits		$15		$9		$8
Loss recognized in income tax expense related to interest and penalties		$4		$1		$2