Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of the Provision for Income Tax (Benefit) [Table Text Block]

Details of the Company's income tax provision from continuing operations are provided in the table below:



	Year Ended December 31
	2018		2017		2016
	(Dollars in Millions)
Income (Loss) Before Income Taxes: (a)
U.S	$	76	$	84	$	41
Non-U.S	127		132		118
Total income before income taxes	$	203	$	216	$	159
Current Tax Provision:
U.S. federal	$	—	$	—	$	(11	)
Non-U.S	42		42		54
Total current tax provision	42		42		43
Deferred Tax Provision (Benefit):
Non-U.S	1		6		(13		)
Total deferred tax provision (benefit)	1		6		(13		)
Provision for income taxes	$	43	$	48	$	30

(a) Income (loss) before income taxes excludes equity in net income of non-consolidated affiliates.

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A summary of the differences between the provision for income taxes calculated at the U.S. statutory tax rate of 21% for 2018 and 35% for 2017 and 2016 and the consolidated income tax provision from continuing operations is shown below:



	Year Ended December 31
	2018			2017			2016
	(Dollars in Millions)
Tax provision (benefit) at U.S. statutory rate of 21% for 2018 and 35% for 2017 and 2016	$	43		$	76		$	56
Impact of foreign operations	16			(5		)	(26		)
Non-U.S withholding taxes	14			15			13
Tax holidays in foreign operations	(5		)	(7		)	(7		)
State and local income taxes	3			(1		)	(1		)
Tax reserve adjustments	(6		)	(14		)	5
Change in valuation allowance	(81		)	(270		)	25
Impact of U.S. tax reform	33			250			—
Impact of tax law change	35			5			26
Worthless stock deduction	—			—			(58		)
Research credits	(5		)	(1		)	(3		)
Other	(4		)	—			—
Provision for income taxes	$	43		$	48		$	30

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred income tax assets and liabilities are as follows:



	December 31
	2018			2017
	(Dollars in Millions)
Deferred Tax Assets:
Employee benefit plans	$	64		$	74
Capitalized expenditures for tax reporting	3			3
Net operating losses and credit carryforwards	1,090			1,178
Fixed assets and intangibles	9			10
Restructuring	8			7
Inventory	9			7
Deferred income	5			9
Warranty	10			13
Other	57			39
Valuation allowance	(1,144		)	(1,242		)
Total deferred tax assets	$	111		$	98
Deferred Tax Liabilities:
Fixed assets and intangibles	$	17		$	15
Outside basis investment differences, including withholding tax	57			54
All other	15			6
Total deferred tax liabilities	$	89		$	75
Net deferred tax assets (liabilities)	$	22		$	23
Consolidated Balance Sheet Classification:
Other non-current assets	45			46
Deferred tax liabilities non-current	23			23
Net deferred tax assets (liabilities)	$	22		$	23

Summary of Unrecognized Tax Benefits [Table Text Block]



	Year Ended December 31
	2018			2017
	(Dollars in Millions)
Beginning balance	$	18		$	35
Tax positions related to current period
Additions	—			3
Tax positions related to prior periods
Reductions	(4		)	(18		)
Settlements with tax authorities	—			(3		)
Lapses in statute of limitations	(4		)	—
Effect of exchange rate changes	—			1
Ending balance	$	10		$	18