Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income before Income Taxes and Noncontrolling Interests

The domestic and foreign components of the Company's earnings before income taxes and noncontrolling interests are as follows:

	Year Ended December 31,
	2018			2017			2016
	(Millions)
U.S. income earnings (loss) before income taxes	$	(138	)	$	(28	)	$	52
Foreign earnings (loss) before income taxes	312			364			359
Earnings (loss) before income taxes and noncontrolling interests	$	174		$	336		$	411

Comparative Analysis of Components of Income Tax Expense

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

	Year Ended December 31,
	2018			2017			2016
	(Millions)
Current —
U.S. federal	$	8		$	(23	)	$	(9	)
State and local	1			1			4
Foreign	119			101			85
	128			79			80
Deferred —
U.S. federal	(35		)	16			(95		)
State and local	(5		)	(3		)	(1		)
Foreign	(25		)	(21		)	12
	(65		)	(8		)	(84		)
Income tax expense (benefit)	$	63		$	71		$	(4	)

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 (21% for 2018 and 35% for 2017 and 2016) to the income tax expense (benefit) reflected in the consolidated statements of income:

	Year Ended December 31,
	2018			2017			2016
	(Millions)
Income tax expense computed at the statutory U.S. federal income tax rate	$	37		$	117		$	144
Increases (reductions) in income tax expense resulting from:
Foreign income taxed at different rates	19			(48		)	(42		)
Transition Tax under Tax Cuts and Jobs Act ("TCJA")	11			43			—
Re-measurement of Worldwide Deferred Taxes	—			53			—
State and local taxes on income, net of U.S. federal income tax benefit	(6		)	(2		)	3
Changes in valuation allowance for tax loss carryforwards and credits	—			(1		)	18
Investment and R&D tax credits	(12		)	(6		)	(6		)
Foreign earnings subject to U.S. federal income tax	9			(74		)	(101		)
Tax contingencies	1			(1		)	(7		)
Other	4			(10		)	(13		)
Income tax expense (benefit)	$	63		$	71		$	(4	)

Components of Our Net Deferred Tax Assets

The components of the Company's net deferred tax assets were as follows:

	December 31,
	2018			2017
	(Millions)
Deferred tax assets —
Tax loss carryforwards:
State	$	18		$	19
Foreign	364			114
Tax credits	159			118
Postretirement benefits other than pensions	21			37
Pensions	158			24
Payroll accruals	24			18
Book over tax depreciation	68			(45		)
Other accruals	163			80
Valuation allowance	(514		)	(163		)
Total deferred tax assets	461			202
Deferred tax liabilities —
Amortization of intangibles	82			—
Total deferred tax liabilities	82			—
Net deferred tax assets	$	379		$	202

Reconciliation of Deferred Taxes to Deferred Taxes Shown In Balance Sheet

	December 31,
	2018			2017
	(Millions)
Consolidated Balance Sheets:
Non-current portion — deferred tax asset	$	467		$	213
Non-current portion — deferred tax liability	(88		)	(11		)
Net deferred tax assets	$	379		$	202

Reconciliation of Our Uncertain Tax Positions

A reconciliation of the Company's uncertain tax positions is as follows:

	2018			2017			2016
	(Millions)
Uncertain tax positions —
Balance January 1	$	112		$	111		$	123
Gross increases in tax positions due to acquisition	110			—			—
Gross increases in tax positions in current period	8			6			6
Gross increases in tax positions in prior period	7			2			2
Gross decreases in tax positions in prior period	(1		)	(2		)	(5		)
Gross decreases — settlements	(2		)	—			—
Gross decreases — statute of limitations expired	(10		)	(5		)	(15		)
Balance December 31	$	224		$	112		$	111

Tax Years Open to Examination in Primary Jurisdictions

As of December 31, 2018, the Company's tax years open to examination in primary jurisdictions are as follows:

	Open To Tax Year
United States	2003
Belgium	2016
Brazil	2014
China	2009
Germany	2009
Mexico	2013
Poland	2013
Spain	2000
United Kingdom	2015
Italy	2013
France	2009
India	1995