Income Taxes (Tables)-K

12 Months Ended

Dec. 31, 2015

Income Taxes

Provision (benefit) for income taxes calculated based on components of earnings (loss) before income taxes

Continuing operations	2015		2014		2013
U.S.	$	(209)	$	(53)	$	86
Non-U.S.		268		271		249
	$	59	$	218	$	335

Discontinued operations	2015		2014		2013
U.S.	$	—	$	(19)	$	(8)
Non-U.S.		(4)		(4)		(10)
	$	(4)	$	(23)	$	(18)

Provision (benefit) for income taxes

	2015		2014		2013
Current:
U.S.	$	9	$	7	$	7
Non-U.S.		85		103		116
		94		110		123
Deferred:
U.S.		10		—		—
Non-U.S.		2		(18)		(3)
		12		(18)		(3)
Total:
U.S.		19		7		7
Non-U.S.		87		85		113
Total for continuing operations		106		92		120
Total for discontinued operations		—		—		—
	$	106	$	92	$	120

Reconciliation of the provision for income taxes

	2015		2014		2013
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	21	$	76	$	117
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		(12)		(22)		(18)
Changes in valuation allowance		74		29
Withholding tax, net		18		18		22
Non-deductible acquisition costs		6
U.S. tax on intercompany dividends and interest		16		1		3
Tax exempt income		(3)		(5)		(6)
Tax law changes		(3)				6
Tax credit		(13)		(3)		(2)
Other items		2		(2)		(2)
Provision for income taxes	$	106	$	92	$	120

Deferred income taxes reflect: (1) the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes; and (2) carryovers and credits for income tax purposes.

Significant components of deferred tax assets and liabilities and deferred taxes included in the Consolidated Balance Sheets

	2015		2014
Deferred tax assets:
Accrued postretirement benefits	$	51	$	58
Asbestos-related liabilities		183		152
Foreign tax credit		389		376
Operating and capital loss carryovers		435		464
Other credit carryovers		38		37
Accrued liabilities		82		85
Pension liability		128		117
Other		54		65
Total deferred tax assets		1,360		1,354
Deferred tax liabilities:
Property, plant and equipment		128		127
Intangibles and deferred software		131		34
Other		22		36
Total deferred tax liabilities		281		197
Valuation allowance		(1,026)		(1,036)
Net deferred taxes	$	53	$	121

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2015 and 2014 as follows:

	2015		2014
Prepaid expenses	$	—	$	39
Other assets		177		203
Deferred taxes		(124)		(121)
Net deferred taxes	$	53	$	121

Reconciliation of the gross unrecognized tax benefits

The Company records a liability for unrecognized tax benefits related to uncertain tax positions. The Company accrues interest and penalties associated with unrecognized tax benefits as a component of its income tax expense.  The following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013:

	2015		2014		2013
Balance at January 1	$	77	$	100	$	97
Additions and reductions for tax positions of prior years		1		(13)		(3)
Additions based on tax positions related to the current year		10		10		9
Reductions due to the lapse of the applicable statute of limitations		(5)		(8)		(2)
Reductions due to settlements		(1)		(1)
Foreign currency translation		(8)		(11)		(1)
Balance at December 31	$	74	$	77	$	100
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	67	$	70	$	92
Accrued interest and penalties at December 31	$	25	$	29	$	35
Interest and penalties included in tax expense for the years ended December 31	$	(1)	$	(2)	$	1