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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Tax Expense Benefit | The income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 consists of the following (in millions):
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
U.S. Federal | $ | 570 |  |  | $ | 89 |  |  | $ | 671 |
U.S. State and Local | 183 |  |  | 7 |  |  | 49 |
Non-U.S. | 359 |  |  | 374 |  |  | 288 |
Total Current | 1,112 |  |  | 470 |  |  | 1,008 |
Deferred: |  |  |  |  |
U.S. Federal | 255 |  |  | 668 |  |  | 1,115 |
U.S. State and Local | (93 | ) |  | 75 |  |  | 118 |
Non-U.S. | (62 | ) |  | 15 |  |  | (9 | )
Total Deferred | 100 |  |  | 758 |  |  | 1,224 |
Total Income Tax Expense | $ | 1,212 |  |  | $ | 1,228 |  |  | $ | 2,232 |
Income Before Income Taxes | Income before income taxes includes the following components (in millions):
| 2019 |  | 2018 |  | 2017
United States | $ | 3,972 |  |  | $ | 4,307 |  |  | $ | 5,987 |
Non-U.S. | 1,680 |  |  | 1,712 |  |  | 1,150 |
Total Income Before Income Taxes: | $ | 5,652 |  |  | $ | 6,019 |  |  | $ | 7,137 |
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, 2019, 2018 and 2017 consists of the following:
| 2019 |  | 2018 |  | 2017
Statutory U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 35.0 | %
U.S. state and local income taxes (net of federal benefit) | 1.4 |  |  | 1.4 |  |  | 1.5 |
Non-U.S. tax rate differential | 0.3 |  |  | 0.2 |  |  | (2.0 | )
U.S. federal tax credits | (1.4 | ) |  | (1.1 | ) |  | (1.8 | )
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 |
Non-U.S. valuation allowance release | (1.2 | ) |  | — |  |  | — |
Other | 1.3 |  |  | (1.1 | ) |  | 0.7 |
Effective income tax rate | 21.4 | % |  | 20.4 | % |  | 31.3 | %
Deferred Tax Liabilities and Assets | Deferred income tax assets and liabilities are comprised of the following at December 31, 2019 and 2018 (in millions):
| 2019 |  | 2018
Fixed assets and capitalized software | $ | (4,720 | ) |  | $ | (4,010 | )
Operating lease right-of-use assets | (685 | ) |  | — |
Other | (538 | ) |  | (493 | )
Deferred tax liabilities | (5,943 | ) |  | (4,503 | )
Pension and postretirement benefits | 2,522 |  |  | 1,743 |
Loss and credit carryforwards | 328 |  |  | 298 |
Insurance reserves | 413 |  |  | 437 |
Stock compensation | 249 |  |  | 189 |
Accrued employee compensation | 287 |  |  | 274 |
Operating lease liabilities | 691 |  |  | — |
Other | 205 |  |  | 196 |
Deferred tax assets | 4,695 |  |  | 3,137 |
Deferred tax assets valuation allowance | (54 | ) |  | (112 | )
Deferred tax asset (net of valuation allowance) | 4,641 |  |  | 3,025 |
Net deferred tax asset (liability) | $ | (1,302 | ) |  | $ | (1,478 | )
Amounts recognized in the consolidated balance sheets: |  |  |
Deferred tax assets | $ | 330 |  |  | $ | 141 |
Deferred tax liabilities | (1,632 | ) |  | (1,619 | )
Net deferred tax asset (liability) | $ | (1,302 | ) |  | $ | (1,478 | )
U.S. State and Local Operating Loss and Credit Carryforwards | , we have U.S. state and local operating loss and credit carryforwards as follows (in millions):
| 2019 |  | 2018
U.S. state and local operating loss carryforwards | $ | 1,374 |  |  | $ | 1,014 |
U.S. state and local credit carryforwards | $ | 110 |  |  | $ | 80 |
Summarized Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our uncertain tax positions (in millions):
| Tax |  | Interest |  | Penalties
Balance at January 1, 2017 | $ | 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 |
Additions for tax positions of the current year | 47 |  |  | — |  |  | 1 |
Additions for tax positions of prior years | 7 |  |  | 10 |  |  | — |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (43 | ) |  | (8 | ) |  | (5 | )
Settlements during the period | (1 | ) |  | (1 | ) |  | — |
Lapses of applicable statute of limitations | (3 | ) |  | — |  |  | — |
Balance at December 31, 2018 | 167 |  |  | 44 |  |  | 5 |
Additions for tax positions of the current year | 6 |  |  | — |  |  | — |
Additions for tax positions of prior years | 51 |  |  | 13 |  |  | — |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (45 | ) |  | (4 | ) |  | (1 | )
Settlements during the period | (3 | ) |  | (1 | ) |  | — |
Lapses of applicable statute of limitations | (4 | ) |  | — |  |  | — |
Balance at December 31, 2019 | $ | 172 |  |  | $ | 52 |  |  | $ | 4 |

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