Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense (benefit) attributable to continuing operations

	Years ended December 31,
(Millions of dollars)	2016		2015		2014
Computed “expected” tax expense excluding noncontrolling interests	$	134	$	84	$	187
Adjustments to tax expense attributable to:
Foreign tax differences		(14)		22		4
Tax-exempt income		(15)		(11)		(9)
State income taxes, net of federal benefit		5		1		10
Federal tax credits		(31)		(16)		(12)
Domestic manufacturing deduction		(5)		(8)		(11)
Other		(4)		(3)		(1)
Total income tax expense	$	70	$	69	$	168

Schedule of components of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2016		2015		2014
United States	$	272	$	196	$	472
Foreign		110		44		63
Total earnings excluding noncontrolling interests		382		240		535
Less: Net income attributable to noncontrolling interests		(2)		(1)		(1)
Total earnings before income taxes	$	384	$	241	$	536

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2016		2015		2014
Current:
Federal	$	(1)	$	52	$	111
Foreign		21		20		20
State and local		7		6		12
Deferred:
Federal		36		(14)		20
Foreign		4		8		1
State and local		3		(3)		4
Income tax expense		70		69		168
Unrealized changes in other comprehensive income		(12)		—		(27)
Total income taxes	$	58	$	69	$	141

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2016		2015
Deferred income tax liabilities:
Depreciation	$	112	$	112
Domestic partnerships		69		53
LIFO		10		11
Cash basis farming adjustment		9		9
Other		18		9
	$	218	$	194
Deferred income tax assets:
Reserves/accruals	$	83	$	103
Deferred earnings of foreign subsidiaries		45		36
Net operating and capital loss carry-forwards		50		10
Tax credit carry-forwards		13		14
Other		8		9
		199		172
Valuation allowance		58		19
Net deferred income tax liability	$	77	$	41

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

(Millions of dollars)	2016		2015
Beginning balance at January 1	$	7	$	7
Additions for uncertain tax positions of prior years		6		1
Decreases for uncertain tax positions of prior years		—		(2)
Additions for uncertain tax positions of current year		2		1
Lapse of statute of limitations		(2)		—
Ending balance at December 31	$	13	$	7