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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Tax Expense Benefit | The income tax expense (benefit) for the years ended December 31, 2017, 2016 and 2015 consists of the following (in millions):
| 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |
U.S. Federal | $ | 671 |  |  | $ | 1,338 |  |  | $ | 1,634 |
U.S. State and Local | 49 |  |  | 67 |  |  | 88 |
Non-U.S. | 288 |  |  | 177 |  |  | 236 |
Total Current | 1,008 |  |  | 1,582 |  |  | 1,958 |
Deferred: |  |  |  |  |
U.S. Federal | 1,121 |  |  | 103 |  |  | 469 |
U.S. State and Local | 118 |  |  | 31 |  |  | 65 |
Non-U.S. | (9 | ) |  | (11 | ) |  | 6 |
Total Deferred | 1,230 |  |  | 123 |  |  | 540 |
Total Income Tax Expense | $ | 2,238 |  |  | $ | 1,705 |  |  | $ | 2,498 |
Income Before Income Taxes | Income before income taxes includes the following components (in millions):
| 2017 |  | 2016 |  | 2015
United States | $ | 5,998 |  |  | $ | 4,322 |  |  | $ | 6,348 |
Non-U.S. | 1,150 |  |  | 814 |  |  | 994 |
Total Income Before Income Taxes: | $ | 7,148 |  |  | $ | 5,136 |  |  | $ | 7,342 |
Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate | A reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended December 31, 2017, 2016 and 2015 consists of the following:
| 2017 |  | 2016 |  | 2015
Statutory U.S. federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
U.S. state and local income taxes (net of federal benefit) | 1.5 |  |  | 1.5 |  |  | 1.7 |
Non-U.S. tax rate differential | (2.0 | ) |  | (2.4 | ) |  | (1.2 | )
Nondeductible/nontaxable items | (0.1 | ) |  | 0.8 |  |  | 0.2 |
U.S. federal tax credits | (1.8 | ) |  | (1.2 | ) |  | (1.3 | )
Income tax benefit from the Tax Cuts and Jobs Act and other non-U.S. tax law changes | (3.6 | ) |  | — |  |  | — |
Defined benefit plans mark-to-market charge tax rate differential (1) | 1.5 |  |  | — |  |  | — |
Other | 0.8 |  |  | (0.5 | ) |  | (0.4 | )
Effective income tax rate | 31.3 | % |  | 33.2 | % |  | 34.0 | %
Deferred Tax Liabilities and Assets | Deferred income tax assets and liabilities are comprised of the following at December 31, 2017 and 2016 (in millions):
| 2017 |  | 2016
Fixed assets and capitalized software | $ | (3,288 | ) |  | $ | (4,782 | )
Other | (535 | ) |  | (756 | )
Deferred tax liabilities | (3,823 | ) |  | (5,538 | )
Pension and postretirement benefits | 1,877 |  |  | 4,236 |
Loss and credit carryforwards | 323 |  |  | 229 |
Insurance reserves | 449 |  |  | 733 |
Stock compensation | 182 |  |  | 297 |
Other | 626 |  |  | 681 |
Deferred tax assets | 3,457 |  |  | 6,176 |
Deferred tax assets valuation allowance | (126 | ) |  | (159 | )
Deferred tax asset (net of valuation allowance) | 3,331 |  |  | 6,017 |
Net deferred tax asset (liability) | $ | (492 | ) |  | $ | 479 |
Amounts recognized in the consolidated balance sheets: |  |  |
Deferred tax assets | $ | 265 |  |  | $ | 591 |
Deferred tax liabilities | (757 | ) |  | (112 | )
Net deferred tax asset (liability) | $ | (492 | ) |  | $ | 479 |
U.S. State and Local Operating Loss and Credit Carryforwards | In addition, we have U.S. state and local operating loss and credit carryforwards as follows (in millions):
| 2017 |  | 2016
U.S. state and local operating loss carryforwards | $ | 1,215 |  |  | $ | 603 |
U.S. state and local credit carryforwards | $ | 83 |  |  | $ | 70 |
Summarized Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits (in millions):
| Tax |  | Interest |  | Penalties
Balance at January 1, 2015 | $ | 172 |  |  | $ | 42 |  |  | $ | 3 |
Additions for tax positions of the current year | 24 |  |  | — |  |  | — |
Additions for tax positions of prior years | 45 |  |  | 21 |  |  | 3 |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (85 | ) |  | (8 | ) |  | — |
Settlements during the period | (6 | ) |  | (2 | ) |  | — |
Lapses of applicable statute of limitations | (2 | ) |  | — |  |  | — |
Balance at December 31, 2015 | 148 |  |  | 53 |  |  | 6 |
Additions for tax positions of the current year | 17 |  |  | — |  |  | — |
Additions for tax positions of prior years | 20 |  |  | 10 |  |  | — |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (41 | ) |  | (13 | ) |  | — |
Settlements during the period | — |  |  | — |  |  | — |
Lapses of applicable statute of limitations | — |  |  | — |  |  | — |
Balance at December 31, 2016 | 144 |  |  | 50 |  |  | 6 |
Additions for tax positions of the current year | 16 |  |  | — |  |  | — |
Additions for tax positions of prior years | 33 |  |  | 14 |  |  | 3 |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (24 | ) |  | (18 | ) |  | — |
Settlements during the period | (6 | ) |  | (3 | ) |  | — |
Lapses of applicable statute of limitations | (3 | ) |  | — |  |  | — |
Balance at December 31, 2017 | $ | 160 |  |  | $ | 43 |  |  | $ | 9 |

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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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