Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income before income taxes

Income before income taxes is comprised of the following components:

	For Years Ended December 31,
	2019		2018		2017
U.S.	$	4,915	$	5,672	$	5,130
Non-U.S.	813		1,014		950
Total	$	5,728	$	6,686	$	6,080

Provision for income taxes

Provision for income taxes is comprised of the following components:

	For Years Ended December 31,
	2019						2018						2017
	Current		Deferred		Total		Current		Deferred		Total		Current		Deferred		Total
U.S. federal	$	483	$	25	$	508	$	979	$	(98)	$	881	$	2,101	$	51	$	2,152
Non-U.S.	135		56		191		225		(8)		217		173		61		234
U.S. state	12		—		12		7		1		8		12		—		12
Total	$	630	$	81	$	711	$	1,211	$	(105)	$	1,106	$	2,286	$	112	$	2,398

Principal reconciliation items from U.S. statutory income tax rate to the effective tax rate

Principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (provision for income taxes as a percentage of income before income taxes) are as follows:

	For Years Ended December 31,
	2019		2018		2017
U.S. statutory income tax rate	21.0	%	21.0	%	35.0	%
U.S. tax benefit for foreign derived intangible income	(4.9)		(5.3)		—
U.S. excess tax benefit for stock compensation	(3.1)		(2.0)		(4.1)
U.S. R&D tax credit	(1.4)		(1.3)		(1.1)
Non-U.S. effective tax rates	0.3		0.1		(2.5)
U.S. Tax Act transitional non-cash expense	—		4.2		—
U.S. Tax Act enactment-date effects and measurement period adjustments	—		(0.7)		12.7
U.S. tax benefit for manufacturing	—		—		(1.6)
Other	0.5		0.5		1.0
Effective tax rate	12.4	%	16.5	%	39.4	%

Primary components of deferred tax assets and liabilities

The primary components of deferred tax assets and liabilities are as follows:

	December 31,
	2019		2018
Deferred tax assets:
Deferred loss and tax credit carryforwards	$	213	$	247
Accrued expenses	113		129
Stock compensation	109		122
Inventories and related reserves	109		107
Retirement costs for defined benefit and retiree health care	49		80
Total deferred tax assets, before valuation allowance	593		685
Valuation allowance	(180)		(172)
Total deferred tax assets, after valuation allowance	413		513
Deferred tax liabilities:
Property, plant and equipment	(95)		(10)
Acquisition-related intangibles and fair-value adjustments	(82)		(142)
International earnings	(62)		(43)
Other	(55)		(65)
Total deferred tax liabilities	(294)		(260)
Net deferred tax asset	$	119	$	253

Deferred tax assets and liabilities presentation on the Balance sheet

The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows:

	December 31,
	2019		2018
Deferred tax assets	$	197	$	295
Deferred tax liabilities	(78)		(42)
Net deferred tax asset	$	119	$	253

Summary of uncertain tax positions

The changes in the total amounts of uncertain tax positions are as follows:

	2019		2018		2017
Balance, January 1	$	286	$	300	$	243
Additions based on tax positions related to the current year	3		3		17
Additions for tax positions of prior years	63		1		42
Reductions for tax positions of prior years	(41)		—		(1)
Settlements with tax authorities	(8)		(18)		(1)
Balance, December 31	$	303	$	286	$	300
Interest income (expense) recognized in the year ended December 31	$	9	$	(15)	$	(19)
Interest payable as of December 31	$	44	$	49	$	38