Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

U.S. and Foreign Components of Earnings From Continuing Operations Before Income Taxes and Equity in Loss of Investee Companies

The U.S. and foreign components of earnings from continuing operations before income taxes and equity in loss of investee companies were as follows:



Year Ended December 31,	2017		2016		2015
United States	$	1,441	$	1,803	$	1,840
Foreign	538		427		424
Total	$	1,979	$	2,230	$	2,264

Income Tax Provision Components

The components of the provision for income taxes were as follows:



Year Ended December 31,	2017			2016		2015
Current:
Federal	$	720		$	359	$	110
State and local	38			64		30
Foreign	63			61		91
	821			484		231
Deferred	(188		)	144		445
Provision for income taxes	$	633		$	628	$	676

Reconciliation of U.S. Federal Statutory Income Tax Rate

The difference between income taxes expected at the U.S. federal statutory income tax rate of 35% and the provision for income taxes is summarized as follows:



Year Ended December 31,	2017			2016			2015
Taxes on income at U.S. federal statutory rate	$	693		$	780		$	792
State and local taxes, net of federal tax benefit	47			59			55
Effect of foreign operations	(162		)	(112		)	(100		)
Impact of federal tax legislation	129			—			—
Excess tax benefits from stock-based compensation	(44		)	—			—
Domestic production deduction	(31		)	(42		)	(25		)
Sales of businesses	—			—			(42		)
Audit settlements, net	—			—			(9		)
Other, net^(a)	1			(57		)	5
Provision for income taxes	$	633		$	628		$	676

(a) 2016 includes a one-time tax benefit of $47 million associated with a multiyear adjustment to a tax deduction, which was approved by the IRS during the third quarter of 2016.

Components of Deferred Income Tax Assets and Liabilities

The following table summarizes the components of deferred income tax assets and liabilities.



At December 31,	2017			2016
Deferred income tax assets:
Reserves and other accrued liabilities	$	391		$	671
Pension, postretirement and other employee benefits	478			843
Tax credit and loss carryforwards	835			966
Other	70			113
Total deferred income tax assets	1,774			2,593
Valuation allowance	(974		)	(928		)
Deferred income tax assets, net	800			1,665
Deferred income tax liabilities:
Intangible assets	(847		)	(1,469		)
Unbilled licensing receivables	(291		)	(636		)
Property, equipment and other assets	(86		)	(140		)
Total deferred income tax liabilities	(1,224		)	(2,245		)
Deferred income tax liabilities, net	$	(424	)	$	(580	)

Change in Reserve for Uncertain Tax Positions

The following table sets forth the change in the reserve for uncertain tax positions, excluding related accrued interest and penalties.



At January 1, 2015	$	140
Additions for current year tax positions	14
Additions for prior year tax positions	6
Reductions for prior year tax positions	(32		)
Cash settlements	(23		)
Statute of limitations lapses	(1		)
At December 31, 2015	104
Additions for current year tax positions	9
Additions for prior year tax positions	4
Reductions for prior year tax positions	(8		)
Cash settlements	(6		)
Statute of limitations lapses	(1		)
At December 31, 2016	102
Additions for current year tax positions	50
Additions for prior year tax positions	39
Reductions for prior year tax positions	(41		)
Cash settlements	(5		)
Statute of limitations lapses	(7		)
At December 31, 2017	$	138