Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

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

Continuing operations	2018		2017		2016
U.S.	$	(100)	$	(43)	$	(27)
Non-U.S.		377		318		383
	$	277	$	275	$	356

Discontinued operations	2018		2017		2016
U.S.	$	—	$	—	$	—
Non-U.S.		113		(3)		(7)
	$	113	$	(3)	$	(7)

Provision (benefit) for income taxes

	2018		2017		2016
Current:
U.S.	$	8	$	(5)	$	—
Non-U.S.		109		87		123
		117		82		123
Deferred:
U.S.		—		6		3
Non-U.S.		(9)		(18)		(7)
		(9)		(12)		(4)
Total:
U.S.		8		1		3
Non-U.S.		100		69		116
Total for continuing operations		108		70		119
Total for discontinued operations		—		—		—
	$	108	$	70	$	119

Reconciliation of the provision for income taxes

	2018		2017		2016
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	58	$	96	$	124
Increase (decrease) in provision for income taxes due to:
Non-U.S. tax rates		25		(29)		(22)
Global intangible low taxed income		32
U.S. Tax Cuts and Jobs Act: transition tax, net of foreign tax credits		(2)		2
Tax law changes		4		152		(3)
Change in valuation allowance: U.S. tax law change		(2)		(162)
Change in valuation allowance: other		(18)		(283)		3
Tax attribute expiration		6		330
Withholding tax		10		8		7
Non-deductible expenses		4		9		20
U.S. tax on intercompany dividends and interest		1		2		3
Tax exempt income		(2)		(3)		(2)
Intraperiod tax allocation						(8)
Tax credits and incentives		(23)		(37)		(19)
Changes in tax reserves		13		(18)		8
Mexico inflationary adjustments		8		13		6
Equity earnings		(13)		(13)		(9)
Intercompany financing		1		(4)		(5)
Other taxes based on income		7		10		11
Other items		(1)		(3)		5
Provision for income taxes	$	108	$	70	$	119

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

	2018		2017
Deferred tax assets:
Accrued postretirement benefits	$	38	$	44
Asbestos-related liabilities		127		122
Foreign tax credit carryovers		96		124
Operating and capital loss carryovers		286		342
Other credit carryovers		18		17
Accrued liabilities		65		69
Pension liabilities		92		77
Other		57		41
Total deferred tax assets		779		836
Deferred tax liabilities:
Property, plant and equipment		97		101
Intangibles and deferred software		92		97
Total deferred tax liabilities		189		198
Valuation allowance		(495)		(543)
Net deferred taxes	$	95	$	95

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2018 and 2017 as follows:

	2018		2017
Other assets	$	191	$	194
Deferred taxes		(96)		(99)
Net deferred taxes	$	95	$	95

Reconciliation of the gross unrecognized tax benefits

	2018		2017		2016
Balance at January 1	$	79	$	74	$	74
Additions and reductions for tax positions of prior years		(4)		1
Additions based on tax positions related to the current year		15		17		15
Reductions due to the lapse of the applicable statute of limitations				(7)		(3)
Reductions due to settlements				(9)		(12)
Foreign currency translation		(3)		3
Balance at December 31	$	87	$	79	$	74
Unrecognized tax benefits, which if recognized, would impact the Company’s effective income tax rate	$	78	$	72	$	66
Accrued interest and penalties at December 31	$	10	$	8	$	23
Interest and penalties included in tax expense for the years ended December 31	$	2	$	(15)	$	(2)