Income taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income before income taxes

Income before income taxes is comprised of the following components:

	For Years Ended December 31,
	2018		2017		2016
U.S.	$	5,672	$	5,130	$	3,953
Non-U.S.		1,014		950		977
Total	$	6,686	$	6,080	$	4,930

Provision for income taxes

Provision for income taxes is comprised of the following components:

	For Years Ended December 31,
	2018							2017						2016
	Current		Deferred			Total		Current		Deferred		Total		Current		Deferred			Total
U.S. federal	$	979	$	(98	)	$	881	$	2,101	$	51	$	2,152	$	1,289	$	(122	)	$	1,167
Non-U.S.		225		(8	)		217		173		61		234		238		(80	)		158
U.S. state		7		1			8		12		—		12		10		—			10
Total	$	1,211	$	(105	)	$	1,106	$	2,286	$	112	$	2,398	$	1,537	$	(202	)	$	1,335

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,
	2018			2017			2016
U.S. statutory income tax rate		21.0	%		35.0	%		35.0	%
U.S. tax benefit for foreign derived intangible income		(5.3	)		—			—
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 on global intangible low-taxed income		0.4			—			—
U.S. tax benefit for manufacturing		—			(1.6	)		(1.5	)
U.S. excess tax benefit for stock compensation		(2.0	)		(4.1	)		(3.0	)
U.S. R&D tax credit		(1.3	)		(1.1	)		(1.2	)
U.S. non-deductible expenses		0.2			0.2			0.3
Non-U.S. effective tax rates		0.1			(2.5	)		(3.7	)
Impact of changes to uncertain tax positions		—			0.7			0.6
Other		(0.1	)		0.1			0.6
Effective tax rate		16.5	%		39.4	%		27.1	%

Primary components of deferred tax assets and liabilities

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

	December 31,
	2018			2017
Deferred tax assets:
Deferred loss and tax credit carryforwards	$	247		$	256
Accrued expenses		129			119
Stock compensation		122			107
Inventories and related reserves		107			93
Retirement costs for defined benefit and retiree health care		80			38
Other		—			9
Total deferred tax assets, before valuation allowance		685			622
Valuation allowance		(172	)		(165	)
Total deferred tax assets, after valuation allowance		513			457
Deferred tax liabilities:
Acquisition-related intangibles and fair-value adjustments		(142	)		(207	)
International earnings		(43	)		(64	)
Other		(75	)		—
Total deferred tax liabilities		(260	)		(271	)
Net deferred tax asset	$	253		$	186

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,
	2018			2017
Deferred tax assets	$	295		$	264
Deferred tax liabilities		(42	)		(78	)
Net deferred tax asset	$	253		$	186

Summary of uncertain tax positions

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

	2018			2017			2016
Balance, January 1	$	300		$	243		$	84
Additions based on tax positions related to the current year		3			17			4
Additions for tax positions of prior years		1			42			189
Reductions for tax positions of prior years		—			(1	)		(2	)
Settlements with tax authorities		(18	)		(1	)		(32	)
Balance, December 31	$	286		$	300		$	243
Interest income (expense) recognized in the year ended December 31	$	(15	)	$	(19	)	$	4
Interest receivable (payable) as of December 31	$	(49	)	$	(38	)	$	13