Income and Other Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes (pre-tax income) was as follows:

	Year Ended December 31,
	2015		2014		2013
Domestic income	$	5	$	675	$	905
Foreign income	407		531		338
Income Before Income Taxes	$	412	$	1,206	$	1,243

Schedule of Components of Income Tax Expense (Benefit)

(Benefit) provision for income taxes were as follows:

	Year Ended December 31,
	2015			2014			2013
Federal Income Taxes
Current	$	(155	)	$	(3	)	$	17
Deferred	11			79			66
Foreign Income Taxes
Current	100			115			82
Deferred	14			(16		)	36
State Income Taxes
Current	—			34			37
Deferred	7			6			15
Total (Benefit) Provision	$	(23	)	$	215		$	253

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows:

	Year Ended December 31,
	2015		2014		2013
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
Nondeductible expenses	4.4	%	2.0	%	1.5	%
Effect of tax law changes	(2.4	)%	(4.7	)%	(0.6	)%
Change in valuation allowance for deferred tax assets	(0.7	)%	(1.6	)%	0.2	%
State taxes, net of federal benefit	0.6	%	2.2	%	2.7	%
Audit and other tax return adjustments	1.2	%	(2.9	)%	(2.5	)%
Tax-exempt income, credits and incentives	(5.6	)%	(2.4	)%	(4.0	)%
Foreign rate differential adjusted for U.S. taxation of foreign profits(1)	(37.6	)%	(9.6	)%	(12.4	)%
Other	(0.5	)%	(0.2	)%	0.5	%
Effective Income Tax Rate	(5.6	)%	17.8	%	20.4	%

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(1) The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries.

Schedule of Allocation of Income Tax Expense Benefit

Total income tax expense (benefit) was allocated as follows:

	Year Ended December 31,
	2015			2014			2013
Pre-tax income	$	(23	)	$	215		$	253
Discontinued operations(1)	81			6			27
Common shareholders' equity:
Changes in defined benefit plans	59			(408		)	318
Stock option and incentive plans, net	(18		)	(18		)	(13		)
Cash flow hedges	15			—			—
Translation adjustments	—			(2		)	(9		)
Total Income Tax Expense (Benefit)	$	114		$	(207	)	$	576

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(1) Refer to Note 4 - Divestitures for additional information regarding discontinued operations.

Summary of Income Tax Contingencies

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

	2015			2014			2013
Balance at January 1	$	240		$	267		$	201
Additions related to current year	39			16			60
Additions related to prior years positions	—			10			39
Reductions related to prior years positions	(16		)	(35		)	(19		)
Settlements with taxing authorities(1)	(5		)	(10		)	—
Reductions related to lapse of statute of limitations	(9		)	(6		)	(14		)
Currency	(2		)	(2		)	—
Balance at December 31	$	247		$	240		$	267

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(1) Majority of settlements did not result in the utilization of cash.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows:

	December 31,
	2015			2014
Deferred Tax Assets
Research and development	$	377		$	475
Post-retirement medical benefits	311			341
Net operating losses	415			531
Operating reserves, accruals and deferrals	351			318
Tax credit carryforwards	678			579
Deferred compensation	247			286
Pension	563			672
Other	138			177
Subtotal	3,080			3,379
Valuation allowance	(410		)	(538		)
Total	$	2,670		$	2,841
Deferred Tax Liabilities
Unearned income and installment sales	$	928		$	883
Intangibles and goodwill	972			1,161
Other	116			160
Total	$	2,016		$	2,204
Total Deferred Taxes, Net	$	654		$	637