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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Domestic and Foreign Components of Income (Loss) Before Income Taxes | The domestic and foreign components of income (loss) before income taxes were as follows (in millions):
|  | Years Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Domestic |  | $ | (168 | ) |  | $ | (470 | ) |  | $ | (2,095 | )
Foreign |  |  | 209 |  |  |  | 78 |  |  |  | (528 | )
|  | $ | 41 |  |  | $ | (392 | ) |  | $ | (2,623 | )
Components of Provision for Income Taxes | The components of the provision for income taxes consisted of (in millions):
|  | Years Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (5 | ) |  | $ | 23 |  |  | $ | (79 | )
State |  |  | (3 | ) |  |  | 1 |  |  |  | (4 | )
Foreign |  |  | 134 |  |  |  | 161 |  |  |  | 74 |
Total current income tax provision |  |  | 126 |  |  |  | 185 |  |  |  | (9 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 11 |  |  |  | (332 | ) |  |  | (132 | )
State |  |  | - |  |  |  | (2 | ) |  |  | (7 | )
Foreign |  |  | (74 | ) |  |  | (7 | ) |  |  | (59 | )
Total deferred income tax provision |  |  | (63 | ) |  |  | (341 | ) |  |  | (198 | )
Total income tax provision |  | $ | 63 |  |  | $ | (156 | ) |  | $ | (207 | )
Difference Between Effective Tax Rate | The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows (in millions):
| Years Ended December 31, |
| 2018 |  |  | 2017 |  |  | 2016 |
Federal income tax at U.S. statutory rate | $ | 9 |  |  | $ | (137 | ) |  | $ | (918 | )
Foreign income tax rate differential |  | (3 | ) |  |  | (21 | ) |  |  | 32 |
Goodwill impairment |  | — |  |  |  | — |  |  |  | 271 |
Nondeductible expenses |  | 20 |  |  |  | 38 |  |  |  | 30 |
Foreign dividends, net of foreign tax credits |  | 27 |  |  |  | (132 | ) |  |  | (25 | )
Tax rate change on timing differences |  | (7 | ) |  |  | (245 | ) |  |  | (8 | )
Change in uncertain tax positions |  | (5 | ) |  |  | 81 |  |  |  | 11 |
Prior years taxes |  | (13 | ) |  |  | (26 | ) |  |  | (29 | )
Tax impact on foreign exchange |  | (3 | ) |  |  | 5 |  |  |  | (4 | )
Change in deferred tax valuation allowance |  | 49 |  |  |  | 280 |  |  |  | 476 |
State income taxes - net of federal benefit |  | (3 | ) |  |  | (1 | ) |  |  | (10 | )
Tax exempt income |  | (5 | ) |  |  | - |  |  |  | (7 | )
Income tax credits |  | (3 | ) |  |  | (4 | ) |  |  | - |
Other |  | — |  |  |  | 6 |  |  |  | (26 | )
Total income tax provision | $ | 63 |  |  | $ | (156 | ) |  | $ | (207 | )
Significant Components of Deferred Tax Assets and Liability | Significant components of our deferred tax assets and liabilities were as follows (in millions):
|  | December 31, |
|  | 2018 |  |  | 2017 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowances and operating liabilities |  | $ | 293 |  |  | $ | 355 |
Net operating loss carryforwards |  |  | 182 |  |  |  | 182 |
Postretirement benefits |  |  | 30 |  |  |  | 31 |
Tax credit carryforwards |  |  | 768 |  |  |  | 1,002 |
Other |  |  | 95 |  |  |  | 78 |
Valuation allowance |  |  | (955 | ) |  |  | (1,202 | )
Total deferred tax assets |  |  | 413 |  |  |  | 446 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Tax over book depreciation |  |  | 139 |  |  |  | 174 |
Intangible assets |  |  | 688 |  |  |  | 716 |
Deferred income |  |  | 70 |  |  |  | 111 |
Accrued tax on unremitted earnings |  |  | 17 |  |  |  | 17 |
Other |  |  | 52 |  |  |  | 92 |
Total deferred tax liabilities |  |  | 966 |  |  |  | 1,110 |
Net deferred tax liability |  | $ | 553 |  |  | $ | 664 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Unrecognized tax benefit at beginning of year |  | $ | 132 |  |  | $ | 78 |  |  | $ | 46 |
Gross increase for current period tax positions |  |  | 15 |  |  |  | 10 |  |  |  | 3 |
Gross increase for tax positions in prior years |  |  | 31 |  |  |  | 64 |  |  |  | 65 |
Gross decrease for tax positions in prior years |  |  | (10 | ) |  |  | (14 | ) |  |  | (21 | )
Settlements |  |  | (69 | ) |  |  | — |  |  |  | (3 | )
Lapse of statute of limitations |  |  | (1 | ) |  |  | (6 | ) |  |  | (12 | )
Unrecognized tax benefit at end of year |  | $ | 98 |  |  | $ | 132 |  |  | $ | 78 |
Summary of Net Operating Loss Carryforwards | Net operating loss carryforwards by jurisdiction and expiration as of December 31, 2018 were as follows (in millions):
|  | Federal |  |  | State |  |  | Foreign |  |  | Total |
2019 - 2021 Expiration |  | $ | 6 |  |  | $ | 2 |  |  | $ | 51 |  |  | $ | 59 |
2022 - 2033 Expiration |  |  | 16 |  |  |  | 20 |  |  |  | 142 |  |  |  | 178 |
2034 - 2038 Expiration |  |  | 12 |  |  |  | 122 |  |  |  | 94 |  |  |  | 228 |
Unlimited Expiration |  |  | — |  |  |  | — |  |  |  | 428 |  |  |  | 428 |
Total Net Operating Loss (NOL) |  | $ | 34 |  |  | $ | 144 |  |  | $ | 715 |  |  | $ | 893 |
Tax Effected NOL |  | $ | 7 |  |  | $ | 8 |  |  | $ | 167 |  |  | $ | 182 |
Valuation Allowance (VA) |  |  | (6 | ) |  |  | (8 | ) |  |  | (140 | ) |  |  | (154 | )
Tax Effected NOL Net of VA |  | $ | 1 |  |  | $ | — |  |  | $ | 27 |  |  | $ | 28 |

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