Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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)	2015		2014		2013
Computed “expected” tax expense excluding noncontrolling interests	$	84	$	187	$	83
Adjustments to tax expense attributable to:
Foreign tax differences		22		4		2
Tax-exempt income		(11)		(9)		(33)
State income taxes, net of federal benefit		1		10		3
Federal tax credits		(16)		(12)		(21)
Domestic manufacturing deduction		(8)		(11)		(2)
Other		(3)		(1)		—
Total income tax expense	$	69	$	168	$	32

Schedule of components of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2015		2014		2013
United States	$	196	$	472	$	164
Foreign		44		63		80
Total earnings excluding noncontrolling interests		240		535		244
Less: net income attributable to noncontrolling interests		(1)		(1)		(2)
Total earnings before income taxes	$	241	$	536	$	246

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2015		2014		2013
Current:
Federal	$	52	$	111	$	(34)
Foreign		20		20		28
State and local		6		12		3
Deferred:
Federal		(14)		20		25
Foreign		8		1		5
State and local		(3)		4		5
Income tax expense		69		168		32
Unrealized changes in other comprehensive income		—		(27)		10
Total income taxes	$	69	$	141	$	42

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2015		2014
Deferred income tax liabilities:
Depreciation	$	112	$	107
Domestic partnerships		53		49
LIFO		11		42
Cash basis farming adjustment		9		10
Other		9		4
	$	194	$	212
Deferred income tax assets:
Reserves/accruals	$	103	$	111
Deferred earnings of foreign subsidiaries		36		35
Net operating and capital loss carry-forwards		10		19
Tax credit carry-forwards		14		15
Other		9		3
		172		183
Valuation allowance		19		21
Net deferred income tax liability	$	41	$	50

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

(Millions of dollars)	2015		2014
Beginning balance at January 1	$	7	$	7
Additions for uncertain tax positions of prior years		1		—
Decreases for uncertain tax positions of prior years		(2)		—
Additions for uncertain tax positions of current year		1		—
Ending balance at December 31	$	7	$	7