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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of the following (in millions of dollars):
| For the Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Current income tax expense: |  |  |  |  |
U.S. Federal | $ | 166 |  |  | $ | 248 |  |  | $ | 311 |
U.S. State | 32 |  |  | 29 |  |  | 38 |
Foreign | 47 |  |  | 22 |  |  | 25 |
Total current | 245 |  |  | 299 |  |  | 374 |
Deferred income tax expense | 13 |  |  | 14 |  |  | 12 |
Total income tax expense | $ | 258 |  |  | $ | 313 |  |  | $ | 386 |
Schedule of Income before Income Tax, Domestic and Foreign | Earnings (losses) before income taxes by geographical area consisted of the following (in millions of dollars):
| For the Years Ended December 31,
| 2018 |  | 2017 |  | 2016
U.S. | $ | 1,163 |  |  | $ | 971 |  |  | $ | 1,074 |
Foreign | (82 | ) |  | (35 | ) |  | (55 | )
| $ | 1,081 |  |  | $ | 936 |  |  | $ | 1,019 |
Schedule of Deferred Tax Assets and Liabilities | The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) as of December 31, 2018 and 2017 were as follows (in millions of dollars):
| As of December 31,
| 2018 |  | 2017
Deferred tax assets: |  |  |
Inventory | $ | 4 |  |  | $ | 14 |
Accrued expenses | 35 |  |  | 44 |
Accrued employment-related benefits | 49 |  |  | 63 |
Foreign operating loss carryforwards | 64 |  |  | 72 |
Tax credit carryforward | 22 |  |  | 20 |
Other | 7 |  |  | 8 |
Deferred tax assets | 181 |  |  | 221 |
Less valuation allowance | (72 | ) |  | (84 | )
Deferred tax assets, net of valuation allowance | $ | 109 |  |  | $ | 137 |
Deferred tax liabilities: |  |  |
Property, buildings and equipment | (29 | ) |  | (33 | )
Intangibles | (105 | ) |  | (119 | )
Software | (15 | ) |  | (20 | )
Prepaids | (6 | ) |  | (6 | )
Other | (8 | ) |  | (4 | )
Deferred tax liabilities | (163 | ) |  | (182 | )
Net deferred tax liability | $ | (54 | ) |  | $ | (45 | )
The net deferred tax asset (liability) is classified as follows: |  |  |
Noncurrent assets | $ | 12 |  |  | $ | 22 |
Noncurrent liabilities (foreign) | (66 | ) |  | (67 | )
Net deferred tax liability | $ | (54 | ) |  | $ | (45 | )
Summary of Valuation Allowance Changes | The Company's valuation allowance changed as follows (in millions of dollars):
| For the Years Ended December 31,
| 2018 |  | 2017
Balance at beginning of period | $ | (84 | ) |  | $ | (73 | )
Increases primarily related to foreign NOLs | (3 | ) |  | (13 | )
Releases related to foreign NOLs | 16 |  |  | 8 |
Other changes, net | — |  |  | 5 |
Increase related to U.S. foreign tax credits | (1 | ) |  | (11 | )
Balance at end of period | $ | (72 | ) |  | $ | (84 | )
Reconciliation of Income Tax Statutory Rate | A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in millions of dollars):
| For the Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Federal income tax | $ | 227 |  |  | $ | 327 |  |  | $ | 357 |
State income taxes, net of federal income tax benefit | 32 |  |  | 20 |  |  | 26 |
Clean energy credit | (20 | ) |  | (38 | ) |  | (29 | )
Foreign rate difference | 20 |  |  | 10 |  |  | 21 |
Goodwill impairment | 20 |  |  | — |  |  | — |
U.S. tax legislation impact (see note below) | — |  |  | (3 | ) |  | — |
Excess tax benefits from stock-based compensation | (15 | ) |  | (14 | ) |  | — |
Other - net | (6 | ) |  | 11 |  |  | 11 |
Income tax expense | $ | 258 |  |  | $ | 313 |  |  | $ | 386 |
Effective tax rate | 23.9 | % |  | 33.5 | % |  | 37.9 | %
Reconciliation of Income Tax Contingencies | The changes in the liability for tax uncertainties, excluding interest, are as follows (in millions of dollars):
| For the Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Balance at beginning of year | $ | 45 |  |  | $ | 59 |  |  | $ | 61 |
Additions for tax positions related to the current year | 4 |  |  | 4 |  |  | 14 |
Additions for tax positions of prior years | 3 |  |  | 5 |  |  | 13 |
Reductions for tax positions of prior years | (5 | ) |  | (13 | ) |  | (15 | )
Reductions due to statute lapse | (9 | ) |  | (5 | ) |  | (1 | )
Settlements, audit payments, refunds - net | (1 | ) |  | (5 | ) |  | (13 | )
Balance at end of year | $ | 37 |  |  | $ | 45 |  |  | $ | 59 |

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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 for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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