Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

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

Continuing operations	2017		2016		2015
U.S.	$	(43)	$	(27)	$	—
Non-U.S.		318		383		268
	$	275	$	356	$	268

Discontinued operations	2017		2016		2015
U.S.	$	—	$	—	$	—
Non-U.S.		(3)		(7)		(4)
	$	(3)	$	(7)	$	(4)

Provision (benefit) for income taxes

	2017		2016		2015
Current:
U.S.	$	(5)	$	—	$	9
Non-U.S.		87		123		85
		82		123		94
Deferred:
U.S.		6		3		10
Non-U.S.		(18)		(7)		2
		(12)		(4)		12
Total:
U.S.		1		3		19
Non-U.S.		69		116		87
Total for continuing operations		70		119		106
Total for discontinued operations		—		—		—
	$	70	$	119	$	106

Reconciliation of the provision for income taxes

	2017		2016		2015
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	96	$	124	$	94
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		(29)		(22)		(12)
U.S. Tax Cut and Jobs Act: transition tax, net of foreign tax credits		2
Tax law changes		152		(3)		(3)
Change in valuation allowance: U.S. tax law change		(162)
Change in valuation allowance: other		(283)		3		1
Tax attribute expiration		330
Withholding tax, net		8		7		10
Non-deductible acquisition costs						6
Non-deductible expenses		9		20		7
U.S. tax on intercompany dividends and interest		2		3		16
Tax exempt income		(3)		(2)		(3)
Intraperiod tax allocation				(8)
Tax credit		(37)		(19)		(14)
Changes in tax reserves		(18)		8		5
Mexico inflationary adjustments		13		6		3
Equity earnings		(13)		(9)		(7)
Intercompany financing		(4)		(5)		1
Other taxes based on income		10		11		3
Other items		(3)		5		(1)
Provision for income taxes	$	70	$	119	$	106

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

	2017		2016
Deferred tax assets:
Accrued postretirement benefits	$	44	$	53
Asbestos-related liabilities		122		242
Foreign tax credit carryovers		124		413
Operating and capital loss carryovers		342		389
Other credit carryovers		17		34
Accrued liabilities		69		95
Pension liabilities		77		138
Other		43		74
Total deferred tax assets		838		1,438
Deferred tax liabilities:
Property, plant and equipment		101		131
Intangibles and deferred software		97		119
Other		2		9
Total deferred tax liabilities		200		259
Valuation allowance		(543)		(1,094)
Net deferred taxes	$	95	$	85

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2017 and 2016 as follows:

	2017		2016
Other assets	$	194	$	185
Deferred taxes		(99)		(100)
Net deferred taxes	$	95	$	85

Reconciliation of the gross unrecognized tax benefits

	2017		2016		2015
Balance at January 1	$	74	$	74	$	77
Additions and reductions for tax positions of prior years		1				1
Additions based on tax positions related to the current year		17		15		10
Reductions due to the lapse of the applicable statute of limitations		(7)		(3)		(5)
Reductions due to settlements		(9)		(12)		(1)
Foreign currency translation		3				(8)
Balance at December 31	$	79	$	74	$	74
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	72	$	66	$	67
Accrued interest and penalties at December 31	$	8	$	23	$	25
Interest and penalties included in tax expense for the years ended December 31	$	(14)	$	(2)	$	(1)