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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Table Text Block [Abstract] |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows:
(Millions) |  |  | 2017 |  |  | 2016 |  |  | 2015
Current income tax expense: |  |  |  |  |  |  |  |  |
| U.S. federal(a) |  | $ | 3,408 |  | $ | 2,179 |  | $ | 2,107
| U.S. state and local |  |  | 259 |  |  | 272 |  |  | 335
| Non-U.S. |  |  | 386 |  |  | 342 |  |  | 416
|  | Total current income tax expense |  |  | 4,053 |  |  | 2,793 |  |  | 2,858
Deferred income tax (benefit) expense: |  |  |  |  |  |  |  |  |
| U.S. federal(b) |  |  | 541 |  |  | (45) |  |  | (23)
| U.S. state and local |  |  | (7) |  |  | (8) |  |  | (5)
| Non-U.S. |  |  | 91 |  |  | (52) |  |  | (55)
|  | Total deferred income tax (benefit) expense |  |  | 625 |  |  | (105) |  |  | (83)
Total income tax expense |  | $ | 4,678 |  | $ | 2,688 |  | $ | 2,775
2017 includes a charge of $1.7 billion related to the Tax Act deemed repatriation tax on certain non-U.S. earnings. 2017 includes charges related to the Tax Act of $0.6 billion due to the remeasurement of certain federal net deferred tax assets to the lower federal tax rate of 21 percent and $0.3 billion due to deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries.
Effective income tax rate | A reconciliation of the U.S. federal statutory rate of 35 percent a s of December 31, 2017, to the Company’s actual income tax rate for the years ended December 31 on continuing operations was as follows:
|  |  |  | 2017 |  | 2016 |  | 2015 |
U.S. statutory federal income tax rate |  | 35.0 | % | 35.0 | % | 35.0 | %
(Decrease) increase in taxes resulting from: |  |  |  |  |  |  |
| Tax-exempt income |  | (1.7) |  | (1.7) |  | (1.7) |
| State and local income taxes, net of federal benefit |  | 2.3 |  | 2.7 |  | 2.8 |
| Non-U.S. subsidiaries' earnings(a) |  | (5.7) |  | (2.0) |  | (1.8) |
| Tax settlements(b) |  | (0.7) |  | (0.6) |  | (0.2) |
| Non deductible expenses(c) |  | ― |  | ― |  | 0.9 |
| U.S. Tax Act(d) |  | 34.8 |  | ― |  | ― |
| Other |  | (0.9) |  | (0.2) |  | ― |
|  | Actual tax rates |  | 63.1 | % | 33.2 | % | 35.0 | %
Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely. In addition, 2017 included tax benefits of $156 million, which decreased the actual tax rate by 2.1 percent, related to the realization of certain foreign tax credits. Relates to the resolution of tax matters in various jurisdictions. Relates to the nondeductible portion of the Prepaid Services goodwill impairment in 2015. Relates to the $2.6 billion charge for the impacts of the Tax Act.
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table:
(Millions) |  |  | 2017 |  |  | 2016
Deferred tax assets: |  |  |  |  |  |
| Reserves not yet deducted for tax purposes |  | $ | 2,724 |  | $ | 3,889
| Employee compensation and benefits |  |  | 403 |  |  | 595
| Other |  |  | 409 |  |  | 592
|  | Gross deferred tax assets |  |  | 3,536 |  |  | 5,076
|  | Valuation allowance |  |  | (46) |  |  | (54)
|  | Deferred tax assets after valuation allowance |  |  | 3,490 |  |  | 5,022
Deferred tax liabilities: |  |  |  |  |  |
| Intangibles and fixed assets |  |  | 1,057 |  |  | 1,691
| Deferred revenue |  |  | 306 |  |  | 441
| Deferred interest |  |  | 183 |  |  | 305
| Investment in joint ventures |  |  | 137 |  |  | 209
| Other |  |  | 259 |  |  | 121
|  | Gross deferred tax liabilities |  |  | 1,942 |  |  | 2,767
Net deferred tax assets |  | $ | 1,548 |  | $ | 2,255
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits:
(Millions) |  |  | 2017 |  |  | 2016 |  |  | 2015
Balance, January 1 |  | $ | 974 |  | $ | 870 |  | $ | 909
Increases: |  |  |  |  |  |  |  |  |
| Current year tax positions |  |  | 200 |  |  | 167 |  |  | 81
| Tax positions related to prior years |  |  | 39 |  |  | 117 |  |  | 177
Decreases: |  |  |  |  |  |  |  |  |
| Tax positions related to prior years(a) |  |  | (289) |  |  | (81) |  |  | (256)
| Settlements with tax authorities |  |  | (77) |  |  | (76) |  |  | (15)
| Lapse of statute of limitations |  |  | (26) |  |  | (22) |  |  | (26)
| Effects of foreign currency translations |  |  | ― |  |  | (1) |  |  | ―
Balance, December 31 |  | $ | 821 |  | $ | 974 |  | $ | 870
Decrease due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in AOCI.

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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://www.xbrl.org/2003/role/presentationRef -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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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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