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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit)
As required under U.S. GAAP, the effects of tax law changes are recognized in the period of enactment. Accordingly, the Company has recorded incremental income tax expense in the amount of $874 million associated with the Tax Act during the year ended December 31, 2017, which is summarized as follows:
Year ended December 31, 2017
 
Financial Statement Location
Valuation allowance on foreign tax credit carryforward
$
471

Deferred tax expense
Re-measurement of U.S. deferred tax balances at 21%
366

Deferred tax expense
Transition tax on repatriation of foreign earnings
16

Current tax expense
Uncertain tax positions on foreign operations
21

Current tax expense
Total
$
874

 
Earnings from Continuing Operations Before Income Taxes
Components of earnings (loss) from continuing operations before income taxes are as follows:
Years ended December 31
2017
 
2016
 
2015
United States
$
959

 
$
651

 
$
725

Other nations
117

 
193

 
192

 
$
1,076

 
$
844

 
$
917

Income Tax Expense (Benefit)
Components of income tax expense (benefit) are as follows:
Years ended December 31
2017
 
2016
 
2015
United States
$
43

 
$
20

 
$
71

Other nations
75

 
31

 
30

States (U.S.)
9

 
18

 
13

Current income tax expense
127

 
69

 
114

United States
1,078

 
180

 
154

Other nations
(8
)
 
36

 
(13
)
States (U.S.)
30

 
(3
)
 
19

Deferred income tax expense
1,100

 
213

 
160

Total income tax expense (benefit)
$
1,227

 
$
282

 
$
274

Federal Statutory Tax Rate and Income Tax Expense
Differences between income tax expense (benefit) computed at the U.S. federal statutory tax rate of 35% and income tax expense (benefit) as reflected in the consolidated statements of operations are as follows:
Years ended December 31
2017
 
2016
 
2015
Income tax expense (benefit) at statutory rate
$
377

35.0
 %
 
$
295

35.0
 %
 
$
321

35.0
 %
Non-U.S. tax on non-U.S. earnings
(28
)
(2.6
)%
 
(25
)
(3.0
)%
 
(46
)
(5.0
)%
State income taxes, net of federal benefit
39

3.6
 %
 
26

3.1
 %
 
24

2.6
 %
Reserve for uncertain tax positions
3

0.3
 %
 
(13
)
(1.6
)%
 
1

0.1
 %
Other provisions
(7
)
(0.6
)%
 
(2
)
(0.4
)%
 
14

1.6
 %
Valuation allowances
(8
)
(0.7
)%
 
(7
)
(0.8
)%
 
(9
)
(1.0
)%
Section 199 deduction
(18
)
(1.7
)%
 
(15
)
(1.7
)%
 
(19
)
(2.1
)%
U.S. tax on undistributed non-U.S. earnings
20

1.9
 %
 
25

3.0
 %
 
(7
)
(0.8
)%
Research credits
(4
)
(0.4
)%
 
(2
)
(0.2
)%
 
(5
)
(0.5
)%
Loss on sale of investment
(21
)
(2.0
)%
 

 %
 

 %
U.S. tax reform
874

81.2
 %
 

 %
 

 %
 
$
1,227

114.0
 %
 
$
282

33.4
 %
 
$
274

29.9
 %
Schedule of Deferred Tax Assets and Liabilities
Significant components of deferred tax assets (liabilities) are as follows: 
December 31
2017
 
2016
Inventory
$
46

 
$
29

Accrued liabilities and allowances
74

 
136

Employee benefits
374

 
693

Capitalized items
18

 
169

Tax basis differences on investments

 
7

Depreciation tax basis differences on fixed assets
72

 
74

Undistributed non-U.S. earnings
(26
)
 
(27
)
Tax carryforwards
778

 
927

Business reorganization
16

 
36

Warranty and customer liabilities
21

 
21

Deferred revenue and costs
142

 
122

Valuation allowances
(604
)
 
(118
)
Deferred charges

 
37

Other
(3
)
 
(8
)
 
$
908

 
$
2,098

Summary of Tax Credit Carryforwards
Tax carryforwards are as follows: 
December 31, 2017
Gross
Tax Loss
 
Tax
Effected
 
Expiration
Period
United States:
 
 
 
 
 
U.S. tax losses
$
56

 
$
12

 
2022-2036
Foreign tax credits

 
471

 
2018-2023
General business credits

 
98

 
2026-2037
State tax losses

 
39

 
2018-2030
State tax credits

 
28

 
2018-2031
Non-U.S. Subsidiaries:
 
 
 
 
 
Japan tax losses
100

 
31

 
2018-2025
Germany tax losses
35

 
11

 
Unlimited
United Kingdom tax losses
88

 
16

 
Unlimited
Singapore tax losses
33

 
6

 
Unlimited
Other subsidiaries tax losses
129

 
31

 
Various
Spain tax credits

 
26

 
Various
Other subsidiaries tax credits

 
9

 
Various
 
 
 
$
778

 
 
Unrecognized Tax Benefits, Including Those Attributable to Discontinued Operations
A roll-forward of unrecognized tax benefits is as follows: 
 
2017
 
2016
Balance at January 1
$
68

 
$
88

Additions based on tax positions related to current year
10

 

Additions for tax positions of prior years
22

 
2

Reductions for tax positions of prior years
(1
)
 
(15
)
Settlements and agreements
(20
)
 
(3
)
Lapse of statute of limitations
(3
)
 
(4
)
Balance at December 31
$
76

 
$
68

Summary of Open Tax Years by Major Jurisdiction
A summary of open tax years by major jurisdiction is presented below: 
Jurisdiction
Tax Years
United States
2008-2017
Australia
2014-2017
Brazil
2013-2017
Canada
2014-2017
China
2013-2017
Mexico
2012-2017
Germany
2011-2017
India
1997-2017
Israel
2012-2017
Poland
2014-2017
Malaysia
2010-2017
United Kingdom
2016-2017