Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

	Year Ended December 31,
(in millions)	2019		2018			2017
Earnings before income taxes:
U.S.	$	310	$	220		$	203
Non-U.S.	955		976			860
Total	$	1,265	$	1,196		$	1,063
Provision for income taxes:
Current:
Federal	$	32	$	17		$	36
State	4		5			5
Foreign	245		259			247
Total current	281		281			288
Deferred:
Federal	150		(40		)	324
State	23		(8		)	2
Foreign	14		(22		)	(34		)
Total deferred	187		(70		)	292
Total provision for income taxes	$	468	$	211		$	580

Effective Income Tax Rate Reconciliation

	Year Ended December 31,
(in millions)	2019			2018			2017
Income taxes at U.S. statutory rate of 21% for 2019 and 2018 (35% for 2017)	$	266		$	251		$	372
Increases (decreases) resulting from:
Impact of transactions	124			(1		)	4
Reserve adjustments, settlements and claims	46			32			8
Foreign rate differentials	35			28			(100		)
Net tax on remittance of foreign earnings	22			(22		)	80
U.S. tax on non-U.S. earnings	15			37			171
Other foreign taxes	10			8			8
State taxes, net of federal benefit	3			6			2
Non-deductible transaction costs	3			3			11
Impact of foreign derived intangible income	(1		)	(15		)	—
Valuation allowance adjustments	(2		)	(11		)	12
Affiliates' earnings	(7		)	(10		)	(18		)
Changes in accounting methods and filing positions	(7		)	(30		)	(2		)
Tax credits	(17		)	(26		)	(24		)
Tax holidays	(26		)	(28		)	(31		)
Revaluation of U.S. deferred taxes	—			(4		)	64
Other	4			(7		)	23
Provision for income taxes, as reported	$	468		$	211		$	580

Reconciliation of the total gross unrecognized tax benefits

(in millions)	2019			2018			2017
Balance, January 1	$	120		$	92		$	91
Additions based on tax positions related to current year	7			24			17
Additions/(reductions) for tax positions of prior years	26			18			(2		)
Reductions for closure of tax audits and settlements	—			(8		)	(20		)
Reductions for lapse in statute of limitations	(6		)	—			(1		)
Translation adjustment	(1		)	(6		)	7
Balance, December 31	$	146		$	120		$	92

Tax jurisdiction

Tax jurisdiction	Years no longer subject to audit	Tax jurisdiction	Years no longer subject to audit
U.S. Federal	2014 and prior	Japan	2018 and prior
China	2012 and prior	Mexico	2013 and prior
France	2015 and prior	Poland	2013 and prior
Germany	2011 and prior	South Korea	2013 and prior
Hungary	2013 and prior

Deferred Tax Assets (Liabilities)

	December 31,
(in millions)	2019			2018
Deferred tax assets:
Research and development capitalization	$	74		$	92
Net operating loss and capital loss carryforwards	70			84
Other comprehensive loss	53			64
Unrecognized tax benefits	49			41
Employee compensation	32			24
Pension and other postretirement benefits	25			19
State tax credits	21			20
Warranty	15			14
Foreign tax credits	13			—
Asbestos-related	—			172
Other	67			80
Total deferred tax assets	$	419		$	610
Valuation allowance	(71		)	(86		)
Net deferred tax asset	$	348		$	524
Deferred tax liabilities:
Goodwill and intangible assets	(174		)	(183		)
Fixed assets	(144		)	(118		)
Unremitted foreign earnings	(56		)	(57		)
Other	(20		)	(19		)
Total deferred tax liabilities	$	(394	)	$	(377	)
Net deferred taxes	$	(46	)	$	147