Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of components of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2019		2018		2017
United States	$	174	$	(109)	$	273
Foreign		110		93		155
Total earnings (loss) excluding noncontrolling interests		284		(16)		428
Net loss attributable to noncontrolling interests		—		—		1
Total earnings (loss) before income taxes	$	284	$	(16)	$	427

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2019		2018		2017
Current:
Federal	$	12	$	(20)	$	118
Foreign		39		32		19
State and local		(1)		—		2
Deferred:
Federal		(41)		5		20
Foreign		(1)		(5)		10
State and local		(7)		(11)		12
Income tax expense		1		1		181
Unrealized changes in other comprehensive income (loss)		(4)		2		(3)
Total income taxes	$	(3)	$	3	$	178

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)	2019		2018		2017
Computed “expected” tax expense (benefit) excluding noncontrolling interests	$	60	$	(3)	$	150
Adjustments to tax expense (benefit) attributable to:
Foreign tax differences		14		12		(22)
Tax-exempt income		(29)		(13)		—
State income taxes, net of federal benefit		(4)		(8)		9
Repatriation tax		—		14		112
Effect on deferreds of federal rate reduction		—		—		(47)
Foreign entity tax status change		—		22		—
Federal tax credits		(47)		(23)		(18)
Federal rate reduction effect on capital loss carryback		—		(3)		—
Domestic manufacturing deduction		—		—		(2)
Other		7		3		(1)
Total income tax expense	$	1	$	1	$	181

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2019		2018
Deferred income tax liabilities:
Depreciation	$	119	$	140
Domestic partnerships		65		78
Unrealized gain on investments		36		—
Other		4		8
	$	224	$	226
Deferred income tax assets:
Reserves/accruals	$	73	$	70
Net operating and capital loss carry-forwards		63		56
LIFO		2		7
Tax credit carry-forwards		75		21
Other		4		4
		217		158
Valuation allowance		68		59
Net deferred income tax liability	$	75	$	127

Schedule of activity within the valuation allowance account

	Balance at		Charge (credit)	Balance at
(Millions of dollars)	beginning of year		to expense	end of year
Allowance for Deferred Tax Assets:
Year Ended December 31, 2019	$	59	9	$	68
Year Ended December 31, 2018	$	59	—	$	59
Year Ended December 31, 2017	$	58	1	$	59

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

(Millions of dollars)	2019		2018
Beginning balance at January 1	$	25	$	18
Additions for uncertain tax positions of prior years		4		2
Decreases for uncertain tax positions of prior years		(3)		—
Additions for uncertain tax positions of current year		6		6
Lapse of statute of limitations		(1)		(1)
Ending balance as of December 31	$	31	$	25