Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Data from Continuing Operations

Income tax data from our continuing operations is as follows (in millions):

	Year Ended December 31,
	2014			2013			2012
Pretax income
U.S.	$	382		$	462		$	356
Foreign		400			366			262
	$	782		$	828		$	618
Provision (benefit) for income tax
Current:
U.S. federal	$	53		$	77		$	26
State and local		10			3			22
Foreign		93			118			118
		156			198			166
Deferred:
U.S. federal		36			69			(25	)
State and local		19			13			(2	)
Foreign		(72	)		(17	)		9
		(17	)		65			(18	)
	$	139		$	263		$	148

Composition of Net Deferred Tax Balances

Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The composition of net deferred tax balances were as follows (in millions):

	December 31,
	2014			2013
Current deferred tax assets	$	199		$	211
Long-term deferred tax assets		596			591
Current deferred tax liabilities (1)		(12	)		(17	)
Long-term deferred tax liabilities		(38	)		(48	)
Deferred income taxes	$	745		$	737

(1) Included in the accrued taxes and other line item in the consolidated balance sheets.

Deferred Tax Assets (Liabilities)

The tax effect of the temporary differences and carryforward items that give rise to deferred tax assets (liabilities) were as follows (in millions):

	December 31,
	2014			2013
Plant, property and equipment	$	(1	)	$	45
Intangibles		(51	)		(51	)
Inventories		61			52
Deferred gains		396			338
Investments		141			139
Receivables (net of reserves)		(30	)		(22	)
Accrued expenses and other reserves		117			140
Employee benefits		67			84
Net operating loss, capital loss and tax credit carryforwards		269			270
Other		56			41
		1,025			1,036
Less valuation allowance		(280	)		(299	)
Deferred income taxes	$	745		$	737

Reconciliation of Tax Provision

A reconciliation of our tax provision at the U.S. statutory rate to the provision for income tax as reported is as follows (in millions):

	Year Ended December 31,
	2014			2013			2012
Tax provision at U.S. statutory rate	$	274		$	290		$	216
U.S. state and local income taxes		17			19			6
Net U.S. tax on foreign earnings		—			5			3
Foreign tax rate differential		(90	)		(81	)		(77	)
Foreign withholding tax		25			26			34
Change in permanent reinvestment assertion on certain foreign earnings		(25	)		—			—
Change in tax law		2			(31	)		—
Change in asset basis		—			(2	)		(13	)
Change in uncertain tax positions		49			20			15
Tax settlements		(51	)		—			(1	)
Tax/(benefits) on asset dispositions		(44	)		(7	)		(41	)
Change in valuation allowances		(9	)		48			21
Other		(9	)		(24	)		(15	)
Provision for income tax	$	139		$	263		$	148

Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits

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

	Year Ended December 31,
	2014			2013			2012
Beginning of year	$	261		$	258		$	221
Additions based on tax positions related to the current year		37			21			14
Additions for tax positions of prior years		26			40			29
Settlements with tax authorities		(81	)		—			(4	)
Reductions for tax positions in prior years		(3	)		(19	)		(1	)
Reductions due to the lapse of applicable statutes of limitations		—			(39	)		(1	)
End of year	$	240		$	261		$	258