Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income before income taxes

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

	2018		2017		2016
U.S.	$	726	$	662	$	366
Foreign	1,113		1,612		979
	$	1,839	$	2,274	$	1,345

Details of income tax provision (benefit)

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

		2018			2017			2016
Current:	Federal	$	102		$	(2	)	$	126
	Foreign	181			290			160
	State	25			12			13
		$	308		$	300		$	299
Deferred:	Federal	$	(24	)	$	603		$	19
	Foreign	5			19			3
	State	8			12			6
		$	(11	)	$	634		$	28
		$	297		$	934		$	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:

	2018		2017		2016
U.S. federal statutory rate	21.0	%	35.0	%	35.0	%
State income tax, net of federal tax	1.0		0.5		1.1
Statutory rate differential attributable to foreign operations	(12.3	)	(9.3	)	(10.5	)
Adjustments to reserves and prior years	2.8		0.5		(0.8	)
Share-based compensation	(2.5	)	(5.1	)	—
Change in valuation allowances	8.5		1.5		(0.2	)
Other, net	(0.4	)	(1.1	)	(0.3	)
Tax Act Enactment	(1.9	)	19.1		—
Effective income tax rate	16.2	%	41.1	%	24.3	%

Details of deferred tax assets (liabilities)

The details of 2018 and 2017 deferred tax assets (liabilities) are set forth below:

	2018			2017
Operating losses	$	180		$	216
Capital losses	3			4
Tax credit carryforwards	266			311
Employee benefits	72			94
Share-based compensation	62			58
Self-insured casualty claims	7			7
Lease-related liabilities	43			51
Various liabilities	43			51
Property, plant and equipment	19			24
Deferred income and other	53			31
Gross deferred tax assets	748			847
Deferred tax asset valuation allowances	(454		)	(421		)
Net deferred tax assets	$	294		$	426
Intangible assets, including goodwill	$	(42	)	$	(69	)
Property, plant and equipment	(33		)	(18		)
Deemed repatriation tax	—			(170		)
Other	(31		)	(36		)
Gross deferred tax liabilities	$	(106	)	$	(293	)
Net deferred tax assets (liabilities)	$	188		$	133

Reported in Consolidated Balance Sheets as:
Deferred income taxes	$	195		$	139
Other liabilities and deferred credits	(7		)	(6		)
	$	188		$	133

Loss carryforwards, by year of expiration

The losses and tax credits will expire as follows:

	Year of Expiration
	2019		2020-2023		2024-2037		Indefinitely		Total
Foreign	$	2	$	22	$	46	$	346	$	416
U.S. state	—		78		941		—		1,019
U.S. federal	—		49		207		—		256
	$	2	$	149	$	1,194	$	346	$	1,691

Unrecognized tax benefits reconciliation

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

	2018			2017
Beginning of Year	$	100		$	91
Additions on tax positions - current year	19			3
Additions for tax positions - prior years	—			8
Reductions for tax positions - prior years	(5		)	—
Reductions for settlements	—			(1		)
Reductions due to statute expiration	(1		)	(1		)
Foreign currency translation adjustment	—			—
End of Year	$	113		$	100