Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income (loss) from continuing operations before income taxes

Income (loss) from continuing operations before income taxes consisted of the following:



(millions)	2014		2013		2012
U.S.	$	27	$	17	$	(198	)
Foreign	19		42		28
Total	$	46	$	59	$	(170	)

Income tax expense (benefit) on continuing operations

Income tax expense (benefit) on continuing operations consisted of the following:



(millions)	2014		2013			2012
Current:
Federal	$	—	$	—		$	—
Foreign	2		10			8
State	1		1			—
	3		11			8
Deferred:
Federal	—		(2		)	3
Foreign	4		2			1
State	—		—			—
	4		—			4
Total	$	7	$	11		$	12

Differences between actual provisions for income taxes and provisions for income taxes at the U.S. federal statutory rate

For our continuing operations, differences between actual provisions for income taxes and provisions for income taxes at the U.S. federal statutory rate (35%) were as follows:



(millions)	2014			2013			2012
Taxes on income (loss) from continuing operations at U.S. federal statutory rate	$	16		$	21		$	(60	)
Foreign earnings subject to different tax rates ^(a)	16			(6		)	(5		)
State income tax, net of federal benefit	1			1			(6		)
Change in valuation allowance	(9		)	(8		)	76
Income from equity method investments	(12		)	—			—
Withholding taxes	2			6			—
Other, net	(1		)	(3		)	7
Tax release from AOCI	(2		)	—			—
Gain on deconsolidation	(7		)	—			—
Tax benefit not realized on pension loss	3			—			—
Provision for income tax expense	$	7		$	11		$	12
Effective income tax rate	15.3		%	18.6		%	(7.1		)%


(a)	Foreign earnings subject to different tax rates includes amounts related to impairments and other charges associated with our GTL business.

Components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities as of December 31 were as follows:



(millions)	2014			2013
Deferred Tax Assets:
Net operating loss and tax credit carryforwards	$	944		$	1,043
Pension and postretirement benefits	196			110
Goodwill and other intangible assets	29			33
Reserves not deductible until paid	47			31
Self insurance	15			15
Capitalized interest	15			12
Inventories	8			8
Share-based compensation	37			35
Other	11			—
Deferred tax assets before valuation allowance	1,302			1,287
Valuation allowance	(1,023		)	(995		)
Total deferred tax assets	$	279		$	292
Deferred Tax Liabilities:
Property, plant and equipment	278			290
Other	—			(1		)
Total deferred tax liabilities	278			289
Net deferred tax assets	$	1		$	3

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(millions)	2014			2013		2012
Balance as of January 1	$	22		$	16	$	12
Tax positions related to the current period:
Gross increase	2			4		2
Gross decrease	—			—		—
Tax positions related to prior periods:
Gross increase	—			2		5
Gross decrease	—			—		—
Settlements	(2		)	—		(3		)
Lapse of statutes of limitations	—			—		—
Balance as of December 31	$	22		$	22	$	16