Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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)	2017		2016		2015
Computed “expected” tax expense excluding noncontrolling interests	$	150	$	134	$	84
Adjustments to tax expense attributable to:
Foreign tax differences		(22)		(14)		22
Tax-exempt income		—		(15)		(11)
State income taxes, net of federal benefit		9		5		1
Repatriation tax		112		—		—
Effect on deferreds of federal rate reduction		(47)		—		—
Federal tax credits		(18)		(31)		(16)
Domestic manufacturing deduction		(2)		(5)		(8)
Other		(1)		(4)		(3)
Total income tax expense	$	181	$	70	$	69

Schedule of components of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2017		2016		2015
United States	$	273	$	272	$	196
Foreign		155		110		44
Total earnings excluding noncontrolling interests		428		382		240
Net loss (income) attributable to noncontrolling interests		1		(2)		(1)
Total earnings before income taxes	$	427	$	384	$	241

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2017		2016		2015
Current:
Federal	$	118	$	(1)	$	52
Foreign		19		21		20
State and local		2		7		6
Deferred:
Federal		20		36		(14)
Foreign		10		4		8
State and local		12		3		(3)
Income tax expense		181		70		69
Unrealized changes in other comprehensive loss		(3)		(12)		—
Total income taxes	$	178	$	58	$	69

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2017		2016
Deferred income tax liabilities:
Depreciation	$	92	$	112
Domestic partnerships		92		69
LIFO		3		10
Cash basis farming adjustment		5		9
Other		17		18
	$	209	$	218
Deferred income tax assets:
Reserves/accruals	$	61	$	83
Deferred earnings of foreign subsidiaries		24		45
Net operating and capital loss carry-forwards		51		50
Tax credit carry-forwards		14		13
Other		6		8
		156		199
Valuation allowance		59		58
Net deferred income tax liability	$	112	$	77

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

(Millions of dollars)	2017		2016
Beginning balance at January 1	$	13	$	7
Additions for uncertain tax positions of prior years		3		6
Additions for uncertain tax positions of current year		3		2
Lapse of statute of limitations		(1)		(2)
Ending balance at December 31	$	18	$	13