Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of income tax [Table Text Block]

Components of income taxes excluding cumulative effects of changes in accounting principles, other comprehensive income, and equity in net results of affiliated companies accounted for after-tax, for the years ended December 31 were as follows:



	2014			2015			2016
Income before income taxes (in millions)
U.S.	$	3,852		$	5,374		$	5,266
Non-U.S.	(2,618		)	4,878			1,530
Total	$	1,234		$	10,252		$	6,796
Provision for/(Benefit from) income taxes (in millions)
Current
Federal	$	(2	)	$	75		$	(122	)
Non-U.S.	389			572			630
State and local	(22		)	17			12
Total current	365			664			520
Deferred
Federal	(735		)	1,494			1,323
Non-U.S.	160			472			121
State and local	214			251			225
Total deferred	(361		)	2,217			1,669
Total	$	4		$	2,881		$	2,189
Reconciliation of effective tax rate
U.S. statutory rate	35.0		%	35.0		%	35.0		%
Non-U.S. tax rates under U.S. rates	(5.2		)	(2.7		)	(1.0		)
State and local income taxes	8.3			1.7			2.3
General business credits	(27.1		)	(3.0		)	(3.1		)
Dispositions and restructurings	13.0			0.4			7.4
U.S. tax on non-U.S. earnings	(23.7		)	(3.0		)	(5.6		)
Prior year settlements and claims	(9.1		)	(0.4		)	—
Tax-exempt income	(24.1		)	(2.0		)	(0.9		)
Enacted change in tax laws	3.9			0.1			(4.2		)
Valuation allowances	32.3			3.6			2.7
Other	(3.0		)	(1.6		)	(0.4		)
Effective rate	0.3		%	28.1		%	32.2		%

Components of deferred tax assets and liabilities [Table Text Block]

The components of deferred tax assets and liabilities at December 31 were as follows (in millions):



	2015			2016
Deferred tax assets
Employee benefit plans	$	6,620		$	6,870
Net operating loss carryforwards	2,327			1,764
Tax credit carryforwards	6,456			5,860
Research expenditures	1,279			1,469
Dealer and dealers’ customer allowances and claims	2,394			2,500
Other foreign deferred tax assets	442			28
All other	2,206			2,289
Total gross deferred tax assets	21,724			20,780
Less: valuation allowances	(1,831		)	(909		)
Total net deferred tax assets	19,893			19,871
Deferred tax liabilities
Leasing transactions	3,329			4,523
Deferred income	1,215			807
Depreciation and amortization (excluding leasing transactions)	2,484			3,175
Finance receivables	688			593
Other foreign deferred tax liabilities	407			371
All other	763			1,388
Total deferred tax liabilities	8,886			10,857
Net deferred tax assets/(liabilities)	$	11,007		$	9,014

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 were as follows (in millions):



	2015			2016
Beginning balance	$	1,286		$	1,601
Increase – tax positions in prior periods	330			12
Increase – tax positions in current period	91			69
Decrease – tax positions in prior periods	(24		)	(67		)
Settlements	(65		)	(23		)
Lapse of statute of limitations	(7		)	(3		)
Foreign currency translation adjustment	(10		)	(3		)
Ending balance	$	1,601		$	1,586