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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Our effective tax rate was 14.3%, 17.1% and 55.6% for 2016, 2015 and 2014. The effective income tax rate for 2014 includes the tax impacts of the establishment of a European regional headquarters and the cash repatriation that affected 2014 but was executed in 2015. The establishment of the European regional headquarters contributed to the lower effective income tax rates in 2015 and 2016.
Effective Income Tax Rate Reconciliation
| 2016 |  | 2015 |  | 2014
United States federal statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
United States state and local income taxes, less federal deduction | 1.7 |  |  | 2.1 |  |  | 2.2 |
Foreign income tax at rates other than 35% | (22.2 | ) |  | (17.6 | ) |  | 4.9 |
Tax related to repatriation of foreign earnings | (0.3 | ) |  | (3.9 | ) |  | 10.1 |
Other | 0.1 |  |  | 1.5 |  |  | 3.4 |
Effective income tax rate | 14.3 | % |  | 17.1 | % |  | 55.6 | %
Earnings Before Income Taxes
| 2016 |  | 2015 |  | 2014
United States | $ | 542 |  |  | $ | 475 |  |  | $ | 355 |
International | 1,379 |  |  | 1,260 |  |  | 805 |
Total | $ | 1,921 |  |  | $ | 1,735 |  |  | $ | 1,160 |
Components of Income Tax Expense
Current income tax expense: | 2016 |  | 2015 |  | 2014
United States federal | $ | 94 |  |  | $ | 78 |  |  | $ | 213 |
United States state and local | 50 |  |  | 23 |  |  | 26 |
International | 176 |  |  | 108 |  |  | 346 |
Total current income tax expense | $ | 320 |  |  | $ | 209 |  |  | $ | 585 |
Deferred income tax expense (benefit): |  |  |  |  |
United States federal | $ | (17 | ) |  | $ | 2 |  |  | $ | 9 |
United States state and local | (12 | ) |  | 8 |  |  | (16 | )
International | (17 | ) |  | 77 |  |  | 67 |
Total deferred income tax expense (benefit) | $ | (46 | ) |  | $ | 87 |  |  | $ | 60 |
Total income tax expense | $ | 274 |  |  | $ | 296 |  |  | $ | 645 |
Interest and penalties included in other income (expense), net were ($1), ($4) and $8 in 2016, 2015 and 2014. The United States federal deferred income tax expense (benefit) includes the utilization of net operating loss carryforwards of $28, $79 and $78 in 2016, 2015 and 2014.
Deferred Income Tax Assets and Liabilities
Deferred income tax assets: | 2016 |  | 2015
Inventories | $ | 583 |  |  | $ | 513 |
Product related liabilities | 115 |  |  | 116 |
Other accrued expenses | 248 |  |  | 206 |
Depreciation and amortization | — |  |  | 4 |
State income taxes | 52 |  |  | 43 |
Share-based compensation | 80 |  |  | 79 |
Net operating loss carryforwards | 74 |  |  | 47 |
Other | 117 |  |  | 143 |
Total deferred income tax assets | $ | 1,269 |  |  | $ | 1,151 |
Less valuation allowances | (51 | ) |  | (47 | )
Net deferred income tax assets | $ | 1,218 |  |  | $ | 1,104 |
Deferred income tax liabilities: |  |  |
Depreciation and amortization | $ | (871 | ) |  | $ | (586 | )
Undistributed earnings | (50 | ) |  | (50 | )
Other | (50 | ) |  | (26 | )
Total deferred income tax liabilities | $ | (971 | ) |  | $ | (662 | )
Net deferred income tax assets | $ | 247 |  |  | $ | 442 |
Reported as: |  |  |
Noncurrent assets—Other | $ | 302 |  |  | $ | 477 |
Noncurrent liabilities—Other liabilities | (55 | ) |  | (35 | )
Total | $ | 247 |  |  | $ | 442 |
Accrued interest and penalties were $34 and $30, which was reported in accrued expenses and other liabilities, both current and noncurrent, on December 31, 2016 and 2015. Net operating loss carryforwards totaling $185 on December 31, 2016 are available to reduce future taxable earnings of certain domestic and foreign subsidiaries. United States loss carryforwards of $160 expire through 2028. International loss carryforwards of $25 began to expire in 2016; however, some have no expiration. Of these carryforwards, $45 are subject to a full valuation allowance. We also have a tax credit carryforward of $40 with a full valuation allowance. These credits have no expiration; however, we do not anticipate generating income tax in excess of the credits in the foreseeable future. No provision was made for United States federal and state income taxes or international income taxes that may result from future remittances of the undistributed earnings of foreign subsidiaries that are determined to be indefinitely reinvested $8,391 on December 31, 2016. Determination of the amount of any unrecognized deferred income tax liability on these is not practicable.
Uncertain Income Tax Positions
| 2016 |  | 2015
Balance at beginning of year | $ | 313 |  |  | $ | 315 |
Increases related to current year income tax positions | 47 |  |  | 21 |
Increases related to prior year income tax positions | 22 |  |  | 3 |
Decreases related to prior year income tax positions: |  |  |
Settlements and resolutions of income tax audits | (82 | ) |  | (9 | )
Statute of limitations expirations | (9 | ) |  | (6 | )
Foreign currency translation | (4 | ) |  | (11 | )
Balance at end of year | $ | 287 |  |  | $ | 313 |
Reported as: |  |  |
Current liabilities—Income taxes | $ | — |  |  | $ | 9 |
Noncurrent liabilities—Other liabilities | 287 |  |  | 304 |
Total | $ | 287 |  |  | $ | 313 |
Our income tax expense would have been reduced by $281 and $304 on December 31, 2016 and 2015 had these uncertain income tax positions been favorably resolved. It is reasonably possible that the amount of unrecognized tax benefits will significantly change due to one or more of the following events in the next twelve months: expiring statutes, audit activity, tax payments, competent authority proceedings related to transfer pricing or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate, including inventory transfer pricing, cost sharing, product royalty and foreign branch arrangements. We are not able to reasonably estimate the amount or the future periods in which changes in unrecognized tax benefits may be resolved. Interest and penalties incurred associated with uncertain tax positions are included in other income (expense), net. In the normal course of business, income tax authorities in various income tax jurisdictions both within the United States and internationally conduct routine audits of our income tax returns filed in prior years. These audits are generally designed to determine if individual income tax authorities are in agreement with our interpretations of complex income tax regulations regarding the allocation of income to the various income tax jurisdictions. Income tax years are open from 2012 through the current year for the United States federal jurisdiction. Income tax years open for our other major jurisdictions range from 2005 through the current year.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: 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=65882285&loc=d3e32639-109319 Reference 5: 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=65882285&loc=d3e32537-109319 + Details
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