Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income before Income Taxes and Noncontrolling Interests

The domestic and foreign components of our income before income taxes and noncontrolling interests are as follows:

	Year Ended December 31,
	2016		2015		2014
	(Millions)
U.S. income before income taxes	$	63	$	198	$	130
Foreign income before income taxes	361		243		268
Income before income taxes and noncontrolling interests	$	424	$	441	$	398

Comparative Analysis of Components of Income Tax Expense

Following is a comparative analysis of the components of income tax expense:

	Year Ended December 31,
	2016			2015			2014
	(Millions)
Current —
U.S. federal	$	(9	)	$	64		$	38
State and local	4			5			3
Foreign	85			83			92
	80			152			133
Deferred —
U.S. federal	(91		)	(1		)	2
State and local	(1		)	1			7
Foreign	12			(6		)	(11		)
	(80		)	(6		)	(2		)
Income tax expense	$	—		$	146		$	131

Reconciliation of Income Taxes Computed at Statutory U.S. Federal Income Tax Rate to Income Tax Expense

Following is a reconciliation of income taxes computed at the statutory U.S. federal income tax rate (35 percent for all years presented) to the income tax expense reflected in the statements of income:

	Year Ended December 31,
	2016			2015			2014
	(Millions)
Income tax expense computed at the statutory U.S. federal income tax rate	$	148		$	154		$	139
Increases (reductions) in income tax expense resulting from:
Foreign income taxed at different rates	(42		)	(14		)	(20		)
Taxes on repatriation of dividends	(105		)	9			4
Remeasurement of estimated tax on unremitted earnings	—			(4		)	—
State and local taxes on income, net of U.S. federal income tax benefit	3			11			8
Changes in valuation allowance for tax loss carryforwards and credits	18			13			12
Foreign tax holidays	—			(7		)	(6		)
Investment and R&D tax credits	(6		)	(26		)	(10		)
Foreign earnings subject to U.S. federal income tax	4			3			7
Adjustment of prior years taxes	—			2			(2		)
Tax contingencies	(7		)	4			—
Other	(13		)	1			(1		)
Income tax expense	$	—		$	146		$	131

Components of Our Net Deferred Tax Assets

The components of our net deferred tax assets were as follows:

	Year Ended December 31,
	2016			2015
	(Millions)
Deferred tax assets —
Tax loss carryforwards:
State	$	13		$	14
Foreign	92			72
Tax credits	83			89
Postretirement benefits other than pensions	55			54
Pensions	48			50
Bad debts	3			2
Sales allowances	7			8
Payroll accruals	39			34
Other accruals	50			58
Valuation allowance	(145		)	(127		)
Total deferred tax assets	245			254
Deferred tax liabilities —
Tax over book depreciation	53			40
Total deferred tax liabilities	53			40
Net deferred tax assets	$	192		$	214

Reconciliation of Deferred Taxes to Deferred Taxes Shown In Balance Sheet

Following is a reconciliation of deferred taxes to the deferred taxes shown in the balance sheet:

	Year Ended December 31,
	2016			2015
	(Millions)
Balance Sheet:
Non-current portion — deferred tax asset	$	199		$	221
Non-current portion — deferred tax liability	(7		)	(7		)
Net deferred tax assets	$	192		$	214

Reconciliation of our Uncertain Tax Positions

A reconciliation of our uncertain tax positions is as follows:

	2016			2015			2014
	(Millions)
Uncertain tax positions —
Balance January 1	$	123		$	114		$	115
Gross increases in tax positions in current period	6			7			8
Gross increases in tax positions in prior period	2			14			5
Gross decreases in tax positions in prior period	(5		)	(4		)	(5		)
Gross decreases — settlements	—			(1		)	(2		)
Gross decreases — statute of limitations expired	(15		)	(7		)	(7		)
Balance December 31	$	111		$	123		$	114

Tax Years Open to Examination in Primary Jurisdictions

We are subject to taxation in the U.S. and various state and foreign jurisdictions. As of December 31, 2016, our tax years open to examination in primary jurisdictions are as follows:

	Open To Tax Year
United States	2006
China	2006
Spain	2004
Canada	2013
Brazil	2011
Mexico	2011
Belgium	2014
Germany	2014
United Kingdom	2014