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PROVISION FOR INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes

Components of earnings from continuing operations before income taxes and the provision (benefit) for U.S. and other income taxes from continuing operations follow:

	For years ended December 31,
(Dollars in millions)	2016				2015				2014
Earnings from continuing operations before income taxes
United States	$	422			$	618			$	627
Outside the United States	627				511				363
Total	$	1,049			$	1,129			$	990
Provision (benefit) for income taxes on earnings from continuing operations
United States Federal
Current	$	(80	)		$	87			$	64
Deferred	214				119				135
Outside the United States
Current	91				59				66
Deferred	(18		)		16				(35		)
State and other
Current	2				22				6
Deferred	(19		)		(28		)		(1		)
Total	$	190			$	275			$	235

Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss

The following represents the deferred tax charge (benefit) recorded as a component of accumulated other comprehensive loss in stockholders' equity:

	For years ended December 31,
(Dollars in millions)	2016				2015				2014
Defined benefit pension and other postretirement benefit plans	$	21			$	42			$	(11	)
Cumulative translation adjustment	—				—				—
Derivatives and hedging	105				21				(141		)
Total	$	126			$	63			$	(152	)

Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement

Total income tax expense (benefit) included in the consolidated financial statements was composed of the following:

	For years ended December 31,
(Dollars in millions)	2016				2015				2014
Continuing operations	$	190			$	275			$	235
Discontinued operations	—				—				2
Other comprehensive income	126				63				(152		)
Total	$	316			$	338			$	85

Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate

Differences between the provision for income taxes on earnings from continuing operations and income taxes computed using the U.S. Federal statutory income tax rate follow:

	For years ended December 31,
(Dollars in millions)	2016				2015				2014
Amount computed using the statutory rate	$	366			$	393			$	345
State income taxes, net	(18		)		(3		)		4
Foreign rate variance	(121		)		(93		)		(105		)
Domestic manufacturing deduction	(7		)		(12		)		(6		)
Change in reserves for tax contingencies	—				(7		)		(6		)
General business credits	(20		)		(15		)		(8		)
U.S. tax on foreign earnings	25				7				5
Other	(35		)		5				6
Provision for income taxes	$	190			$	275			$	235
Effective income tax rate	18		%		24		%		24		%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities follow:

	December 31,
(Dollars in millions)	2016				2015
Deferred tax assets
Post-employment obligations	$	378			$	471
Net operating loss carryforwards	337				349
Tax credit carryforwards	248				276
Environmental reserves	119				122
Unrealized derivative loss	50				162
Other	186				193
Total deferred tax assets	1,318				1,573
Less valuation allowance	278				254
Deferred tax assets less valuation allowance	$	1,040			$	1,319
Deferred tax liabilities
Property, plant, and equipment	$	(1,237	)		$	(1,176	)
Intangible assets	(847		)		(902		)
Other	(128		)		(142		)
Total deferred tax liabilities	$	(2,212	)		$	(2,220	)
Net deferred tax liabilities	$	(1,172	)		$	(901	)
As recorded in the Consolidated Statements of Financial Position:
Other noncurrent assets	$	34			$	27
Deferred income tax liabilities	(1,206		)		(928		)
Net deferred tax liabilities	$	(1,172	)		$	(901	)

Schedule of Tax Receivables and Payables

Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position:

	December 31,
(Dollars in millions)	2016				2015
Miscellaneous receivables	$	235			$	92
Payables and other current liabilities	$	56			$	33
Other long-term liabilities	60				32
Total income taxes payable	$	116			$	65

Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

(Dollars in millions)	2016				2015				2014
Balance at January 1	$	125			$	117			$	51
Adjustments based on tax positions related to current year	(7		)		(12		)	(1)	—
Additions based on acquisitions	—				27				72
Lapse of statute of limitations	(4		)		(7		)		(6		)
Settlements	—				—				—
Balance at December 31	$	114			$	125			$	117

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions, and 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).

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