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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Provision for Federal & Foreign Income Tax Expense | Our provision for federal and foreign income tax expense for continuing operations consisted of the following (in millions):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Federal income tax expense (benefit): |  |  |  |  |  |
Current |  |  |  |  |  |
Operations |  | $ | 975 |  |  | $ | (189 | ) |  | $ | 1,327 |
One-time charge due to tax legislation (a) |  | (6 | ) |  | 43 |  |  | — |
Deferred |  |  |  |  |  |
Operations |  | (194 | ) |  | 1,607 |  |  | (261 | )
One-time charge due to tax legislation (a) |  | (37 | ) |  | 1,843 |  |  | — |
Total federal income tax expense |  | 738 |  |  | 3,304 |  |  | 1,066 |
Foreign income tax expense (benefit): |  |  |  |  |  |
Current |  | 67 |  |  | 53 |  |  | 56 |
Deferred |  | (13 | ) |  | (1 | ) |  | (29 | )
Total foreign income tax expense |  | 54 |  |  | 52 |  |  | 27 |
Total income tax expense |  | $ | 792 |  |  | $ | 3,356 |  |  | $ | 1,093 |
(a) | Represents one-time charge in 2017 primarily due to the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax rate and a deemed repatriation tax, and true-up to this charge in 2018.
Reconciliation of Income Tax Expense Computed Using U.S. Statutory Federal Tax Rate to Actual Income Tax Expense | Our reconciliation of the U.S. federal statutory income tax rate (21% in 2018 and 35% in 2017 and 2016) to actual income tax expense for continuing operations is as follows (dollars in millions):
|  | 2018 |  | 2017 |  | 2016
|  | Amount |  | Rate |  | Amount |  | Rate |  | Amount |  | Rate
Income tax expense at the U.S. federal statutory tax rate |  | $ | 1,226 |  |  | 21.0 | % |  | $ | 1,836 |  |  | 35.0 | % |  | $ | 1,664 |  |  | 35.0 | %
Research and development tax credit |  | (138 | ) |  | (2.4 | ) |  | (115 | ) |  | (2.2 | ) |  | (107 | ) |  | (2.2 | )
Foreign derived intangible income deduction |  | (61 | ) |  | (1.0 | ) |  | — |  |  | — |  |  | — |  |  | — |
Tax deductible dividends |  | (59 | ) |  | (1.0 | ) |  | (94 | ) |  | (1.8 | ) |  | (92 | ) |  | (1.9 | )
Excess tax benefits for share-based payment awards |  | (55 | ) |  | (0.9 | ) |  | (106 | ) |  | (2.0 | ) |  | (152 | ) |  | (3.2 | )
Deferred tax write-down and transition tax (a) |  | (43 | ) |  | (0.7 | ) |  | 1,886 |  |  | 35.9 |  |  | — |  |  | — |
U.S. manufacturing deduction benefit (b) |  | — |  |  | — |  |  | (7 | ) |  | (0.1 | ) |  | (117 | ) |  | (2.5 | )
Tax accounting method change (c) |  | (61 | ) |  | (1.0 | ) |  | — |  |  | — |  |  | — |  |  | — |
Other, net |  | (17 | ) |  | (0.4 | ) |  | (44 | ) |  | (0.8 | ) |  | (103 | ) |  | (2.2 | )
Income tax expense |  | $ | 792 |  |  | 13.6 | % |  | $ | 3,356 |  |  | 64.0 | % |  | $ | 1,093 |  |  | 23.0 | %
(a) | Includes a deferred tax re-measurement and transition tax true-up in 2018 and one-time charge in 2017 primarily due to the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax rate and a deemed repatriation tax.
(b) | Includes a reduction in our 2017 manufacturing benefit as a result of our decision to accelerate contributions to our pension funds in 2018. The Tax Act repealed the manufacturing benefit for years after 2017.
(c) | Recognized tax benefit of $61 million in 2018 from our change in a tax accounting method related to restoration of tax basis.
Components of Federal and Foreign Deferred Tax Assets and Liabilities | The primary components of our federal and foreign deferred income tax assets and liabilities at December 31 were as follows (in millions):
|  | 2018 |  |  | 2017(a) |
Deferred tax assets related to: |  |  |  |
Accrued compensation and benefits |  | $ | 584 |  |  | $ | 595 |
Pensions (b) |  | 2,623 |  |  | 2,495 |
Other postretirement benefit obligations |  | 148 |  |  | 153 |
Contract accounting methods |  | 539 |  |  | 531 |
Foreign company operating losses and credits |  | 38 |  |  | 27 |
Other |  | 160 |  |  | 154 |
Valuation allowance (c) |  | (20 | ) |  | (20 | )
Deferred tax assets, net |  | 4,072 |  |  | 3,935 |
Deferred tax liabilities related to: |  |  |  |
Goodwill and purchased intangibles |  | 296 |  |  | 266 |
Property, plant and equipment |  | 296 |  |  | 239 |
Exchanged debt securities and other |  | 294 |  |  | 303 |
Deferred tax liabilities |  | 886 |  |  | 808 |
Net deferred tax assets |  | $ | 3,186 |  |  | $ | 3,127 |
(a) | Components of our federal and foreign deferred income tax assets and liabilities at December 31, 2017 after taking into account the estimated impacts of the Tax Act and related items.
(b) | The increase in 2018 is primarily due to lower tax deductions for pension contributions resulting from our 2017 decision to accelerate pension contributions to our pension fund in order to receive a deduction in 2017.
(c) | A valuation allowance was provided against certain foreign company deferred tax assets arising from carryforwards of unused tax benefits.

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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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