Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

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

Continuing operations	2016		2015		2014
U.S.	$	(27)	$	—	$	36
Non-U.S.		383		268		271
	$	356	$	268	$	307

Discontinued operations	2016		2015		2014
U.S.	$	—	$	—	$	(19)
Non-U.S.		(7)		(4)		(4)
	$	(7)	$	(4)	$	(23)

Provision (benefit) for income taxes

	2016		2015		2014
Current:
U.S.	$	—	$	9	$	7
Non-U.S.		123		85		103
		123		94		110
Deferred:
U.S.		3		10		—
Non-U.S.		(7)		2		(18)
		(4)		12		(18)
Total:
U.S.		3		19		7
Non-U.S.		116		87		85
Total for continuing operations		119		106		92
Total for discontinued operations		—		—		—
	$	119	$	106	$	92

Reconciliation of the provision for income taxes

	2016		2015		2014
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	124	$	94	$	107
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		(22)		(12)		(22)
Changes in valuation allowance		3		1		(2)
Withholding tax, net		22		18		18
Non-deductible acquisition costs				6
U.S. tax on intercompany dividends and interest		3		16		1
Tax exempt income		(2)		(3)		(5)
Intraperiod tax allocation		(8)
Tax law changes		(3)		(3)
Tax credit		(19)		(14)		(3)
Changes in tax reserves		8		5		(13)
Mexico inflationary adjustments		6		3
Other items		7		(5)		11
Provision for income taxes	$	119	$	106	$	92

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

	2016		2015
Deferred tax assets:
Accrued postretirement benefits	$	53	$	51
Asbestos-related liabilities		242		286
Foreign tax credit		413		389
Operating and capital loss carryovers		389		435
Other credit carryovers		34		38
Accrued liabilities		95		82
Pension liability		138		128
Other		74		63
Total deferred tax assets		1,438		1,472
Deferred tax liabilities:
Property, plant and equipment		131		128
Intangibles and deferred software		119		131
Other		9		25
Total deferred tax liabilities		259		284
Valuation allowance		(1,094)		(1,135)
Net deferred taxes	$	85	$	53

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2016 and 2015 as follows:

	2016		2015
Other assets	$	185	$	177
Deferred taxes		(100)		(124)
Net deferred taxes	$	85	$	53

Reconciliation of the gross unrecognized tax benefits

	2016		2015		2014
Balance at January 1	$	74	$	77	$	100
Additions and reductions for tax positions of prior years				1		(13)
Additions based on tax positions related to the current year		15		10		10
Reductions due to the lapse of the applicable statute of limitations		(3)		(5)		(8)
Reductions due to settlements		(12)		(1)		(1)
Foreign currency translation				(8)		(11)
Balance at December 31	$	74	$	74	$	77
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	66	$	67	$	70
Accrued interest and penalties at December 31	$	23	$	25	$	29
Interest and penalties included in tax expense for the years ended December 31	$	(2)	$	(1)	$	(2)