INCOME TAXES (TABLE)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The following table summarizes our Earnings before taxes and Income tax expense (in millions):

	Twelve Months Ended December 31,
	2019		2018		2017
Earnings before taxes:
United States	$	315	$	411	$	342
Foreign	275		293		217
Total	$	590	$	704	$	559

Schedule of Components of Income Tax Expense (Benefit), By Jurisdiction

Income tax expense:
Current
United States	$	(4)	$	(10)	$	(2)
State and local	11		6		5
Foreign	60		19		83
Total current	67		15		86
Deferred
United States	112		114		196
State and local	11		12		3
Foreign	(4)		15		(16)
Total deferred	119		141		183
Total income tax expense	$	186	$	156	$	269

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the United States federal statutory rate and the Company’s effective income tax rate from continuing operations is:

	Twelve Months Ended December 31,
	2019		2018		2017
United States federal statutory rate	21	%	21	%	35	%
State and local income taxes, net of federal tax benefit	3		2		2
Foreign tax rate differential	—		—		(5)
U.S. tax expense on foreign earnings	1		2		49
Legislative tax rate changes	2		—		(9)
Foreign tax credits	—		—		(29)
Valuation allowance	3		2		3
Uncertain tax positions and settlements	—		(5)		1
Excess tax benefits related to stock compensation	—		(2)		(1)
Other, net	1		2		2
Effective tax rate	31	%	22	%	48	%

Schedule of Deferred Tax Assets and Liabilities

The cumulative temporary differences giving rise to the deferred tax assets and liabilities are as follows (in millions):

	December 31, 2019				December 31, 2018
	Deferred Tax Assets		Deferred Tax Liabilities		Deferred Tax Assets		Deferred Tax Liabilities
Other employee benefits	$	76	$	—	$	87	$	—
Pension plans	54		—		66		—
Operating loss and tax credit carryforwards	195		—		255		—
Depreciation	—		247		—		259
Leases - Right of Use Assets	—		49		—		—
Leases - Liability	49		—		—		—
Amortization	—		388		—		395
Foreign tax credits	97		—		161		—
State and local taxes	3		—		3		—
Other	76		—		61		—
Subtotal	550		684		633		654
Valuation allowances	(92)		—		(78)		—
Total deferred taxes	$	458	$	684	$	555	$	654

Summary of Operating Loss and Tax Credit Carryforwards

The following table summarizes the amount and expiration dates of our deferred tax assets related to operating loss and credit carryforwards at December 31, 2019 (in millions):

	Expiration Dates	Amounts
U.S. federal loss carryforwards	2036 - 2037	$	27
U.S. state loss carryforwards (a)	2020 – 2034	47
Foreign loss and tax credit carryforwards	Indefinite	30
Foreign loss and tax credit carryforwards (a)	2020 – 2037	61
Other U.S. federal and state tax credits	2028 – 2034	30
Total operating loss and tax credit carryforwards		$	195
U.S foreign tax credits	2027	$	97

(a)As of December 31, 2019, $16 million of U.S. state and $6 million of foreign deferred tax assets related to loss carryforwards that are set to expire over the next three years.

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions):

	Twelve Months Ended December 31,
	2019		2018		2017
Balance at beginning of period	$	84	$	90	$	98
Tax positions related to the current year
Gross additions	—		6		1
Tax positions related to prior years
Gross additions	1		36		13
Gross reductions	—		(37)		(11)
Settlements	(1)		(5)		(12)
Expiration of statute of limitations	(5)		(4)		—
Impact of currency changes	—		(2)		1
Balance at end of period	$	79	$	84	$	90