XML 52 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Before Income Taxes

For the years ended December 31, income (loss) before income taxes consisted of the following:

In millions	2017				2016				2015
Income (loss) before income taxes
United States	$	(26	)		$	93			$	(88	)
Foreign	84				128				(56		)
Total income (loss) before income taxes	$	58			$	221			$	(144	)

Income Tax Expense

For the years ended December 31, income tax expense consisted of the following:

In millions	2017				2016				2015
Income tax expense
Current
Federal	$	132			$	67			$	74
State and local	2				7				9
Foreign	25				25				26
Deferred
Federal	(22		)		7				(19		)
State and local	(4		)		1				(3		)
Foreign	(8		)		(11		)		(17		)
Total income tax expense	$	125			$	96			$	70
Effective income tax rate	215.5		%		43.4		%		(48.6		%)

The Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate

The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31:

In millions	2017			2016			2015
Income tax expense at the U.S. federal tax rate	35.0	%		35.0	%		35.0	%
Foreign income tax differential	(18.0	)%		(13.2	)%		14.0	%
State and local income taxes	(11.0	)%		0.2	%		0.5	%
U.S. permanent book/tax differences	(12.0	)%		(0.1	)%		3.1	%
Change in valuation allowance for California R&D credit	10.0	%		0.8	%		(3.4	)%
U.S. manufacturing deduction permanent difference	(8.0	)%		(3.5	)%		5.5	%
Goodwill impairment	—	%		8.9	%		(100.1	)%
Tax impact of sale of marketing applications business	—	%		9.9	%		—	%
Impact of excess tax benefits and tax deficiencies	—	%		2.2	%		—	%
Tax impact of U.S. tax law change - IRC Section 987	—	%		3.5	%		—	%
Deferred tax impact from U.S. rate change	(27.0	)%		—	%		—	%
Tax impact of transition Tax- U.S. tax reform	250.0	%		—	%		—	%
Other, net	(3.5	)%		(0.3	)%		(3.2	)%
Effective income tax rate	215.5	%		43.4	%		(48.6	)%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:

In millions	2017				2016
Deferred income tax assets
Employee pensions and other liabilities	$	50			$	59
Other balance sheet reserves and allowances	13				18
Tax loss and credit carryforwards	59				53
Deferred revenue	3				3
Other	2				—
Total deferred income tax assets	127				133
Valuation allowance	(32		)		(26		)
Net deferred income tax assets	95				107
Deferred income tax liabilities
Intangibles and capitalized software	30				63
Property and equipment	12				22
Other	—				6
Total deferred income tax liabilities	42				91
Total net deferred income tax assets	$	53			$	16

Liability Related to Uncertain Tax Positions

Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:

In millions	2017				2016
Balance at January 1	$	30			$	38
Gross decreases for prior period tax positions	(1		)		(7		)
Gross increases for current period tax positions	3				3
Decreases due to the lapse of applicable statute of limitations	(4		)		(4		)
Balance at December 31	$	28			$	30

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration