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Taxes on Income (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate | A reconciliation between the effective tax rate and the U.S. statutory rate is as follows:
| 2018 |  | 2017 |  | 2016
| Amount |  | Tax Rate |  | Amount |  | Tax Rate |  | Amount |  | Tax Rate
U.S. statutory rate applied to income before taxes | $ | 1,827 |  |  | 21.0 | % |  | $ | 2,282 |  |  | 35.0 | % |  | $ | 1,631 |  |  | 35.0 | %
Differential arising from: |  |  |  |  |  |  |  |  |  |  |
Impact of the TCJA | 289 |  |  | 3.3 |  |  | 2,625 |  |  | 40.3 |  |  | — |  |  | — |
Valuation allowances | 269 |  |  | 3.1 |  |  | 632 |  |  | 9.7 |  |  | (5 | ) |  | (0.1 | )
Impact of purchase accounting adjustments, including amortization | 267 |  |  | 3.1 |  |  | 713 |  |  | 10.9 |  |  | 623 |  |  | 13.4 |
State taxes | 201 |  |  | 2.3 |  |  | 77 |  |  | 1.2 |  |  | 173 |  |  | 3.7 |
Restructuring | 56 |  |  | 0.6 |  |  | 142 |  |  | 2.2 |  |  | 145 |  |  | 3.1 |
Foreign earnings | (245 | ) |  | (2.8 | ) |  | (1,654 | ) |  | (25.4 | ) |  | (1,546 | ) |  | (33.2 | )
R&D tax credit | (96 | ) |  | (1.1 | ) |  | (71 | ) |  | (1.1 | ) |  | (58 | ) |  | (1.3 | )
Tax settlements | (22 | ) |  | (0.3 | ) |  | (356 | ) |  | (5.5 | ) |  | — |  |  | — |
Other (1) | (38 | ) |  | (0.4 | ) |  | (287 | ) |  | (4.4 | ) |  | (245 | ) |  | (5.2 | )
| $ | 2,508 |  |  | 28.8 | % |  | $ | 4,103 |  |  | 62.9 | % |  | $ | 718 |  |  | 15.4 | %
(1) | Other includes the tax effects of losses on foreign subsidiaries and miscellaneous items.
Income Before Taxes | Income before taxes consisted of:
Years Ended December 31 | 2018 |  | 2017 |  | 2016
Domestic | $ | 3,717 |  |  | $ | 3,483 |  |  | $ | 518 |
Foreign | 4,984 |  |  | 3,038 |  |  | 4,141 |
| $ | 8,701 |  |  | $ | 6,521 |  |  | $ | 4,659 |
Taxes on Income | Taxes on income consisted of:
Years Ended December 31 | 2018 |  | 2017 |  | 2016
Current provision |  |  |  |  |
Federal | $ | 536 |  |  | $ | 5,585 |  |  | $ | 1,166 |
Foreign | 2,281 |  |  | 1,229 |  |  | 916 |
State | 200 |  |  | (90 | ) |  | 157 |
| 3,017 |  |  | 6,724 |  |  | 2,239 |
Deferred provision |  |  |  |  |
Federal | (402 | ) |  | (2,958 | ) |  | (1,255 | )
Foreign | (64 | ) |  | 75 |  |  | (225 | )
State | (43 | ) |  | 262 |  |  | (41 | )
| (509 | ) |  | (2,621 | ) |  | (1,521 | )
| $ | 2,508 |  |  | $ | 4,103 |  |  | $ | 718 |
Deferred Income Taxes | Deferred income taxes at December 31 consisted of:
| 2018 |  | 2017
| Assets |  | Liabilities |  | Assets |  | Liabilities
Product intangibles and licenses | $ | 720 |  |  | $ | 1,640 |  |  | $ | 307 |  |  | $ | 2,256 |
Inventory related | 32 |  |  | 377 |  |  | 29 |  |  | 499 |
Accelerated depreciation | — |  |  | 582 |  |  | 28 |  |  | 642 |
Pensions and other postretirement benefits | 565 |  |  | 151 |  |  | 498 |  |  | 192 |
Compensation related | 291 |  |  | — |  |  | 314 |  |  | — |
Unrecognized tax benefits | 174 |  |  | — |  |  | 156 |  |  | — |
Net operating losses and other tax credit carryforwards | 715 |  |  | — |  |  | 654 |  |  | — |
Other | 621 |  |  | 66 |  |  | 909 |  |  | 52 |
Subtotal | 3,118 |  |  | 2,816 |  |  | 2,895 |  |  | 3,641 |
Valuation allowance | (1,348 | ) |  |  |  | (900 | ) |  |
Total deferred taxes | $ | 1,770 |  |  | $ | 2,816 |  |  | $ | 1,995 |  |  | $ | 3,641 |
Net deferred income taxes |  |  | $ | 1,046 |  |  |  |  | $ | 1,646 |
Recognized as: |  |  |  |  |  |  |
Other assets | $ | 656 |  |  |  |  | $ | 573 |  |  |
Deferred income taxes |  |  | $ | 1,702 |  |  |  |  | $ | 2,219 |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2018 |  | 2017 |  | 2016
Balance January 1 | $ | 1,723 |  |  | $ | 3,494 |  |  | $ | 3,448 |
Additions related to current year positions | 221 |  |  | 146 |  |  | 196 |
Additions related to prior year positions | 142 |  |  | 520 |  |  | 75 |
Reductions for tax positions of prior years (1) | (73 | ) |  | (1,038 | ) |  | (90 | )
Settlements (1) | (91 | ) |  | (1,388 | ) |  | (92 | )
Lapse of statute of limitations | (29 | ) |  | (11 | ) |  | (43 | )
Balance December 31 | $ | 1,893 |  |  | $ | 1,723 |  |  | $ | 3,494 |
(1) | Amounts reflect the settlements with the IRS as discussed below.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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