Income Taxes

The components of income before income taxes are as follows:



	Year Ended December 31,
	2018		2017		2016
Domestic	$	1,087	$	917	$	476
Foreign	247		164		82
	$	1,334	$	1,081	$	558

The Company's provision for (benefit from) income taxes consists of the following:



	Year Ended December 31,
	2018			2017			2016
Current
Federal	$	158		$	231		$	8
State	28			18			9
Foreign	52			27			20
	238			276			37
Deferred
Federal	59			(557		)	136
State	(2		)	25			(33		)
Foreign	5			(2		)	(2		)
	62			(534		)	101
Total provision for (benefit from) income taxes	$	300		$	(258	)	$	138

A reconciliation of taxes computed at the statutory rate to the Company's income tax expense is as follows:



	Year Ended December 31,
	2018			2017			2016
Provision for federal income tax, at statutory rate	$	280		$	378		$	195
State income tax provision, net of federal income tax effect	28			26			1
Foreign income tax rate differential	5			(33		)	(8		)
Manufacturing deduction	—			(23		)	(2		)
Depletion	(4		)	(7		)	(2		)
Noncontrolling interests	(6		)	(9		)	(7		)
Tax on previously held shares of Axiall Corporation and certain other acquisition related items	—			—			(13		)
Tax Act related adjustment	—			(591		)	—
Changes in state apportionment and other state adjustments	(6		)	2			(17		)
Research and development expenditures and adjustments related to prior years' tax returns	(1		)	(1		)	(8		)
Other, net	4			—			(1		)
	$	300		$	(258	)	$	138

The tax effects of the principal temporary differences between financial reporting and income tax reporting at December 31 are as follows:



	2018			2017
Net operating loss carryforward	$	50		$	64
Credit carryforward	24			26
Accruals	64			53
Pension	76			79
Allowance for doubtful accounts	5			5
Inventories	13			11
Other	12			15
Deferred taxes assets—total	244			253
Property, plant and equipment	(948		)	(906		)
Intangibles	(148		)	(154		)
Turnaround costs	(20		)	(8		)
Basis difference—consolidated partnerships	(202		)	(209		)
Other	(27		)	(18		)
Deferred tax liabilities—total	(1,345		)	(1,295		)
Valuation allowance	(47		)	(56		)
Total net deferred tax liabilities	$	(1,148	)	$	(1,098	)

Balance sheet classifications
Noncurrent deferred tax asset	$	11		$	13
Noncurrent deferred tax liability	(1,159		)	(1,111		)
Total net deferred tax liabilities	$	(1,148	)	$	(1,098	)

At December 31, 2018, the Company had foreign and state net operating loss carryforwards of approximately $331, which will expire in varying amounts between 2019 and 2038 and are subject to certain limitations on an annual basis. Management believes the Company will realize the benefit of a portion of the net operating loss carryforwards before they expire, but to the extent that the full benefit may not be realized, a valuation allowance has been recorded. The valuation allowance decreased by $9 in 2018 mostly as a result of a change to the foreign net operating losses carryforward.

As result of the Tax Act, the Company recognized an income tax benefit of $591 in the 2017 consolidated financial statements for items such as a revaluation of deferred tax assets and liabilities, partially offset by a one-time U.S. tax on the mandatory deemed repatriation of the Company's post-1986 foreign earnings. The Company did not record any material measurement period adjustment in 2018. The accounting for the income tax effects of the Tax Act was completed in the fourth quarter of 2018.

In February 2018, the FASB issued an accounting standards update, Income Statement - Reporting Comprehensive Income, to (1) allow reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Act; and (2) require certain disclosures about stranded tax effects. Certain tax effects become stranded in accumulated other comprehensive income (loss) when deferred tax balances originally recorded at the historical income tax rate are adjusted in income from operations based on the lower, newly-enacted income tax rate. The Company adopted the accounting standard effective October 1, 2018 and reclassified $13 of stranded tax effects relating to its pension benefits liability and cumulative effect of foreign exchange from accumulated other comprehensive income (loss) to retained earnings.

During the fourth quarter of 2018, the Company made a policy election to record the impact of the accounting for GILTI tax as a period cost. The GILTI tax recognized in 2018 was not material to the consolidated financial statements.

For the year ended December 31, 2018, the Company accrued $20 of foreign tax as it is no longer permanently reinvested with respect to the outside basis difference for all of its foreign subsidiaries.

The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is no longer subject to examinations by tax authorities before the year 2012.