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Income taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income before income taxes is comprised of the following components:


	For Years Ended December 31,
	2020		2019		2018
U.S.	$	5,210	$	4,915	$	5,672
Non-U.S.	807		813		1,014
Total	$	6,017	$	5,728	$	6,686

Provision for income taxes

Provision for income taxes is comprised of the following components:


	For Years Ended December 31,
	2020						2019						2018
	Current		Deferred		Total		Current		Deferred		Total		Current		Deferred		Total
U.S. federal	$	357	$	(122)	$	235	$	483	$	25	$	508	$	979	$	(98)	$	881
Non-U.S.	192		(15)		177		135		56		191		225		(8)		217
U.S. state	10		—		10		12		—		12		7		1		8
Total	$	559	$	(137)	$	422	$	630	$	81	$	711	$	1,211	$	(105)	$	1,106

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,
	2020		2019		2018
U.S. statutory income tax rate	21.0	%	21.0	%	21.0	%
U.S. tax benefit for foreign derived intangible income	(6.1)		(4.9)		(5.3)
Impact of changes in uncertain tax positions	(4.0)		(0.1)		—
U.S. excess tax benefit for stock compensation	(2.5)		(3.1)		(2.0)
U.S. R&D tax credit	(1.3)		(1.4)		(1.3)
U.S. Tax Act transitional non-cash expense	—		—		4.2
Other	(0.1)		0.9		(0.1)
Effective tax rate	7.0	%	12.4	%	16.5	%

Primary components of deferred tax assets and liabilities

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


	December 31,
	2020		2019
Deferred tax assets:
Deferred loss and tax credit carryforwards	$	207	$	213
Accrued expenses	180		182
Stock compensation	106		109
Inventories and related reserves	105		109
Retirement costs for defined benefit and retiree health care	44		49
Other	3		—
Total deferred tax assets, before valuation allowance	645		662
Valuation allowance	(179)		(180)
Total deferred tax assets, after valuation allowance	466		482
Deferred tax liabilities:
Property, plant and equipment	(116)		(164)
International earnings	(44)		(62)
Acquisition-related intangibles and fair-value adjustments	(40)		(82)
Other	(13)		(55)
Total deferred tax liabilities	(213)		(363)
Net deferred tax asset	$	253	$	119

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,
	2020		2019
Deferred tax assets	$	343	$	197
Deferred tax liabilities	(90)		(78)
Net deferred tax asset	$	253	$	119

Summary of uncertain tax positions

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


	2020		2019		2018
Balance, January 1	$	303	$	286	$	300
Additions based on tax positions related to the current year	3		3		3
Additions for tax positions of prior years	35		63		1
Reductions for tax positions of prior years	(249)		(41)		—
Settlements with tax authorities	—		(8)		(18)
Expiration of the statute of limitations for assessing taxes	(3)		—		—
Balance, December 31	$	89	$	303	$	286

Interest income (expense) recognized in the year ended December 31	$	39	$	9	$	(15)

Interest payable as of December 31	$	8	$	44	$	49