Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income before income taxes

U.S. and foreign income before taxes are set forth below:

	2017		2016		2015
U.S.	$	662	$	366	$	480
Foreign	1,612		979		773
	$	2,274	$	1,345	$	1,253

Details of income tax provision (benefit)

The details of our income tax provision (benefit) are set forth below:

		2017			2016		2015
Current:	Federal	$	(2	)	$	126	$	267
	Foreign	290			160		133
	State	12			13		28
		$	300		$	299	428
Deferred:	Federal	$	603		$	19	(116		)
	Foreign	19			3		15
	State	12			6		—
		$	634		$	28	$	(101	)
		$	934		$	327	$	327

Effective income tax and tax rate reconciliation

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:

	2017					2016					2015
U.S. federal statutory rate	$	797		35.0	%	$	473		35.0	%	$	438		35.0	%
State income tax, net of federal tax benefit	11			0.5		15			1.1		12			0.9
Statutory rate differential attributable to foreign operations	(212		)	(9.3	)	(143		)	(10.5	)	(175		)	(13.7	)
Adjustments to reserves and prior years	12			0.5		(11		)	(0.8	)	13			1.0
Share-based payments	(117		)	(5.1	)	—			—		—			—
Change in valuation allowances	34			1.5		(3		)	(0.2	)	41			3.0
Other, net	(25		)	(1.1	)	(4		)	(0.3	)	(2		)	(0.1	)
Tax Act Enactment	434			19.1		—			—		—			—
Effective income tax rate	$	934		41.1	%	$	327		24.3	%	$	327		26.1	%

Details of deferred tax assets (liabilities)

The details of 2017 and 2016 deferred tax assets (liabilities) are set forth below:

	2017			2016
Operating losses	$	216		$	172
Capital losses	4			184
Tax credit carryforwards	311			284
Employee benefits	94			185
Share-based compensation	58			100
Self-insured casualty claims	7			32
Lease-related liabilities	51			65
Various liabilities	51			56
Property, plant and equipment	24			37
Deferred income and other	31			32
Gross deferred tax assets	847			1,147
Deferred tax asset valuation allowances	(421		)	(195		)
Net deferred tax assets	$	426		$	952
Intangible assets, including goodwill	$	(69	)	$	(107	)
Property, plant and equipment	(18		)	(46		)
Deemed repatriation tax	(170		)	—
Other	(36		)	(34		)
Gross deferred tax liabilities	$	(293	)	$	(187	)
Net deferred tax assets (liabilities)	$	133		$	765

Reported in Consolidated Balance Sheets as:
Deferred income taxes	$	139		$	772
Other liabilities and deferred credits	(6		)	(7		)
	$	133		$	765

Loss carryforwards, by year of expiration

These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income and will expire as follows:

	Year of Expiration
	2018		2019-2022		2023-2036		Indefinitely		Total
Foreign	$	9	$	46	$	85	$	376	$	516
U.S. state	—		61		1,012		—		1,073
U.S. federal	—		67		238		—		305
	$	9	$	174	$	1,335	$	376	$	1,894

Unrecognized tax benefits reconciliation

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

	2017			2016
Beginning of Year	$	91		$	98
Additions on tax positions - current year	3			—
Additions for tax positions - prior years	8			1
Reductions for tax positions - prior years	—			(5		)
Reductions for settlements	(1		)	(1		)
Reductions due to statute expiration	(1		)	(2		)
Foreign currency translation adjustment	—			—
End of Year	$	100		$	91

Summary of income tax examinations

The accrued interest and penalties related to income taxes at December 31, 2017 and December 31, 2016 are set forth below:

	2017		2016
Accrued interest and penalties	$	14	$	9