Income taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income before income taxes

Income before income taxes is comprised of the following components:

	For Years Ended December 31,
	2017		2016		2015
U.S.	$	5,130	$	3,953	$	3,218
Non-U.S.		950		977		998
Total	$	6,080	$	4,930	$	4,216

Provision for income taxes

Provision for income taxes is comprised of the following components:

	For Years Ended December 31,
	2017						2016							2015
	Current		Deferred		Total		Current		Deferred			Total		Current		Deferred			Total
U.S. federal	$	2,101	$	51	$	2,152	$	1,289	$	(122	)	$	1,167	$	1,110	$	(72	)	$	1,038
Non-U.S.		173		61		234		238		(80	)		158		168		14			182
U.S. state		12		—		12		10		—			10		7		3			10
Total	$	2,286	$	112	$	2,398	$	1,537	$	(202	)	$	1,335	$	1,285	$	(55	)	$	1,230

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,
	2017			2016			2015
U.S. statutory income tax rate		35.0	%		35.0	%		35.0	%
U.S. Tax Act		12.7			—			—
U.S. excess tax benefit for stock compensation		(4.1	)		(3.0	)		—
Non-U.S. effective tax rates		(2.5	)		(3.7	)		(4.0	)
U.S. tax benefit for manufacturing		(1.6	)		(1.5	)		(1.6	)
U.S. R&D tax credit		(1.1	)		(1.2	)		(1.3	)
Impact of changes to uncertain tax positions		0.7			0.6			0.2
U.S. non-deductible expenses		0.2			0.3			0.3
Other		0.1			0.6			0.6
Effective tax rate		39.4	%		27.1	%		29.2	%

Primary components of deferred tax assets and liabilities

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

	December 31,
	2017			2016
Deferred tax assets:
Deferred loss and tax credit carryforwards	$	256		$	214
Accrued expenses		119			219
Stock compensation		107			220
Inventories and related reserves		93			145
Retirement costs for defined benefit and retiree health care		38			82
Other		9			81
Total deferred tax assets, before valuation allowance		622			961
Valuation allowance		(165	)		(128	)
Total deferred tax assets, after valuation allowance		457			833
Deferred tax liabilities:
Acquisition-related intangibles and fair-value adjustments		(207	)		(460	)
International earnings		(64	)		(32	)
Total deferred tax liabilities		(271	)		(492	)
Net deferred tax asset	$	186		$	341

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,
	2017			2016
Deferred tax assets	$	264		$	374
Deferred tax liabilities		(78	)		(33	)
Net deferred tax asset	$	186		$	341

Summary of uncertain tax positions

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

	2017			2016			2015
Balance, January 1	$	243		$	84		$	108
Additions based on tax positions related to the current year		17			4			11
Additions for tax positions of prior years		42			189			3
Reductions for tax positions of prior years		(1	)		(2	)		(21	)
Settlements with tax authorities		(1	)		(32	)		(17	)
Balance, December 31	$	300		$	243		$	84
Interest income (expense) recognized in the year ended December 31	$	(19	)	$	4		$	8
Interest receivable (payable) as of December 31	$	(38	)	$	13		$	9