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PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes | Components of earnings before income taxes and the (benefit from) provision for U.S. and other income taxes from operations follow:
| For years ended December 31,
(Dollars in millions) | 2017 |  | 2016 |  | 2015
Earnings before income taxes |  |  |  |  |
United States | $ | 654 |  |  | $ | 422 |  |  | $ | 618 |
Outside the United States | 635 |  |  | 627 |  |  | 511 |
Total | $ | 1,289 |  |  | $ | 1,049 |  |  | $ | 1,129 |
(Benefit from) provision for income taxes |  |  |  |  |  |  |  |
United States Federal |  |  |  |  |  |  |  |
Current (1) | $ | 220 |  |  | $ | (80 | ) |  | $ | 87 |
Deferred (2) | (383 | ) |  | 214 |  |  | 119 |
Outside the United States |  |  |  |  |
Current | 62 |  |  | 91 |  |  | 59 |
Deferred | 2 |  |  | (18 | ) |  | 16 |
State and other |  |  |  |  |
Current | 13 |  |  | 2 |  |  | 22 |
Deferred | (13 | ) |  | (19 | ) |  | (28 | )
Total | $ | (99 | ) |  | $ | 190 |  |  | $ | 275 |
(1) | Includes a one-time transition tax of $71 million on deferred foreign income.
(2) | Includes one-time benefit of $517 million primarily due to the re-measurement of certain net deferred tax liabilities using the lower U.S. corporate income tax rate and a one-time $72 million valuation allowance on deferred tax assets for foreign tax credit carryforwards.
Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss | The following represents the deferred tax (benefit) charge recorded as a component of AOCI in the Consolidated Statements of Financial Position:
| For years ended December 31,
(Dollars in millions) | 2017 |  | 2016 |  | 2015
Defined benefit pension and other postretirement benefit plans | $ | (16 | ) |  | $ | 21 |  |  | $ | 42 |
Derivatives and hedging | 8 |  |  | 105 |  |  | 21 |
Total | $ | (8 | ) |  | $ | 126 |  |  | $ | 63 |
Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement | Total income tax (benefit) expense included in the consolidated financial statements was composed of the following:
| For years ended December 31,
(Dollars in millions) | 2017 |  | 2016 |  | 2015
Earnings before income taxes | $ | (99 | ) |  | $ | 190 |  |  | $ | 275 |
Other comprehensive income | (8 | ) |  | 126 |  |  | 63 |
Total | $ | (107 | ) |  | $ | 316 |  |  | $ | 338 |
Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate | Differences between the (benefit from) provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow:
| For years ended December 31,
(Dollars in millions) | 2017 |  | 2016 |  | 2015
Amount computed using the statutory rate | $ | 450 |  |  | $ | 366 |  |  | $ | 393 |
State income taxes, net | (4 | ) |  | (18 | ) |  | (3 | )
Foreign rate variance | (150 | ) |  | (121 | ) |  | (93 | )
Domestic manufacturing deduction | (18 | ) |  | (7 | ) |  | (12 | )
Change in reserves for tax contingencies | 20 |  |  | — |  |  | (7 | )
General business credits | (65 | ) |  | (20 | ) |  | (15 | )
U.S. tax on foreign earnings | 29 |  |  | 25 |  |  | 7 |
Foreign tax credits | (26 | ) |  | (10 | ) |  | (9 | )
Tax law changes and tax loss from outside-U.S. entity reorganizations (1) | (339 | ) |  | — |  |  | — |
Other | 4 |  |  | (25 | ) |  | 14 |
(Benefit from) provision for income taxes | $ | (99 | ) |  | $ | 190 |  |  | $ | 275 |
Effective income tax rate | (8 | )% |  | 18 | % |  | 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) | 2017 |  | 2016
Deferred tax assets |  |  |
Post-employment obligations | $ | 242 |  |  | $ | 378 |
Net operating loss carryforwards | 690 |  |  | 337 |
Tax credit carryforwards | 202 |  |  | 248 |
Environmental reserves | 72 |  |  | 119 |
Unrealized derivative loss | 17 |  |  | 50 |
Other | 90 |  |  | 186 |
Total deferred tax assets | 1,313 |  |  | 1,318 |
Less: Valuation allowance | 410 |  |  | 278 |
Deferred tax assets less valuation allowance | $ | 903 |  |  | $ | 1,040 |
Deferred tax liabilities |  |  |  |  |
Property, plant, and equipment | $ | (835 | ) |  | $ | (1,237 | )
Intangible assets | (535 | ) |  | (847 | )
Investments | (274 | ) |  | — |
Other | (131 | ) |  | (128 | )
Total deferred tax liabilities | $ | (1,775 | ) |  | $ | (2,212 | )
Net deferred tax liabilities | $ | (872 | ) |  | $ | (1,172 | )
As recorded in the Consolidated Statements of Financial Position: |  |  |  |  |
Other noncurrent assets | $ | 21 |  |  | $ | 34 |
Deferred income tax liabilities | (893 | ) |  | (1,206 | )
Net deferred tax liabilities | $ | (872 | ) |  | $ | (1,172 | )
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) | 2017 |  | 2016
Miscellaneous receivables | $ | 215 |  |  | $ | 235 |
Payables and other current liabilities | $ | 58 |  |  | $ | 56 |
Other long-term liabilities | 137 |  |  | 60 |
Total income taxes payable | $ | 195 |  |  | $ | 116 |
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) | 2017 |  | 2016 |  | 2015
Balance at January 1 | $ | 114 |  |  | $ | 125 |  |  | $ | 117 |
Adjustments based on tax positions related to current year | 29 |  |  | (7 | ) |  | (12 | )
Additions based on acquisitions | — |  |  | — |  |  | 27 |
Lapse of statute of limitations | (1 | ) |  | (4 | ) |  | (7 | )
Balance at December 31 | $ | 142 |  |  | $ | 114 |  |  | $ | 125 |

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