Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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:



	2017			2018			2019
Income/(Loss) before income taxes (in millions)
U.S.	$	4,861		$	2,051		$	2,656
Non-U.S.	3,298			2,294			(3,296		)
Total	$	8,159		$	4,345		$	(640	)
Provision for/(Benefit from) income taxes (in millions)
Current
Federal	$	(125	)	$	75		$	(101	)
Non-U.S.	868			690			738
State and local	85			(6		)	33
Total current	828			759			670
Deferred
Federal	(1,214		)	(360		)	(1,190		)
Non-U.S.	593			239			(70		)
State and local	195			12			(134		)
Total deferred	(426		)	(109		)	(1,394		)
Total	$	402		$	650		$	(724	)
Reconciliation of effective tax rate
U.S. statutory rate	35.0		%	21.0		%	21.0		%
Non-U.S. tax rates under U.S. rates	(4.9		)	(1.2		)	46.9
State and local income taxes	2.2			2.0			12.4
General business credits	(3.6		)	(9.2		)	67.0
Dispositions and restructurings	(11.7		)	4.6			45.5
U.S. tax on non-U.S. earnings	(7.0		)	8.1			(49.2		)
Prior year settlements and claims	(0.2		)	1.1			(5.0		)
Tax incentives	—			—			20.7
Enacted change in tax laws	(8.2		)	(3.0		)	(12.5		)
Valuation allowances	5.6			(9.6		)	(18.7		)
Other	(2.3		)	1.2			(15.0		)
Effective rate	4.9		%	15.0		%	113.1		%

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):



	2018			2019
Deferred tax assets
Employee benefit plans	$	4,039		$	4,125
Net operating loss carryforwards	1,825			1,726
Tax credit carryforwards	9,199			9,335
Research expenditures	437			619
Dealer and dealers’ customer allowances and claims	1,552			1,724
Other foreign deferred tax assets	648			799
All other	1,765			1,781
Total gross deferred tax assets	19,465			20,109
Less: Valuation allowances	(973		)	(843		)
Total net deferred tax assets	18,492			19,266
Deferred tax liabilities
Leasing transactions	3,215			2,694
Depreciation and amortization (excluding leasing transactions)	2,865			3,094
Finance receivables	639			584
Other foreign deferred tax liabilities	948			608
All other	1,010			913
Total deferred tax liabilities	8,677			7,893
Net deferred tax assets/(liabilities)	$	9,815		$	11,373

Summary of Unrecognized Tax Benefits Roll Forward [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):



	2018			2019
Beginning balance	$	2,063		$	2,047
Increase – tax positions in prior periods	90			169
Increase – tax positions in current period	45			24
Decrease – tax positions in prior periods	(133		)	(239		)
Settlements	—			(57		)
Lapse of statute of limitations	—			—
Foreign currency translation adjustment	(18		)	(1		)
Ending balance	$	2,047		$	1,943