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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | ncome (loss) before income taxes (pre-tax income (loss)) was as follows:
|  | Year Ended December 31,
(in millions) |  | 2018 |  | 2017 |  | 2016
Domestic loss |  | $ | (411 | ) |  | $ | (91 | ) |  | $ | (1,329 | )
Foreign income |  | 16 |  |  | 75 |  |  | 102 |
Loss Before Income Taxes |  | $ | (395 | ) |  | $ | (16 | ) |  | $ | (1,227 | )
Schedule of Components of Income Tax Expense (Benefit) | (benefit) for income taxes were as follows:
|  | Year Ended December 31,
(in millions) |  | 2018 |  | 2017 |  | 2016
Federal Income Taxes |  |  |  |  |  |
Current |  | $ | 35 |  |  | $ | 4 |  |  | $ | (116 | )
Deferred |  | (62 | ) |  | (233 | ) |  | (132 | )
Foreign Income Taxes |  |  |  |  |  |
Current |  | 41 |  |  | 25 |  |  | 31 |
Deferred |  | (6 | ) |  | (3 | ) |  | (3 | )
State Income Taxes |  |  |  |  |  |
Current |  | 20 |  |  | 8 |  |  | 1 |
Deferred |  | (7 | ) |  | 6 |  |  | (25 | )
Total Benefit |  | $ | 21 |  |  | $ | (193 | ) |  | $ | (244 | )
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate was as follows:
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
U.S. federal statutory income tax rate |  | 21.0 | % |  | 35.0 | % |  | 35.0 | %
Nondeductible expenses(1) |  | (3.7 | )% |  | (104.0 | )% |  | (19.0 | )%
Effect of tax law changes |  | 0.5 | % |  | 1,282.4 | % |  | — | %
Change in valuation allowance for deferred tax assets |  | (1.7 | )% |  | (39.5 | )% |  | 0.1 | %
State taxes, net of federal benefit |  | (2.3 | )% |  | 1.2 | % |  | 1.8 | %
Audit and other tax return adjustments |  | — | % |  | — | % |  | 1.4 | %
Tax-exempt income, credits and incentives |  | 2.2 | % |  | 38.9 | % |  | 0.7 | %
Foreign rate differential adjusted for U.S. taxation of foreign profits(2) |  | 1.9 | % |  | 47.7 | % |  | 0.7 | %
Divestitures(3) |  | (20.3 | )% |  | (51.9 | )% |  | — | %
Unrecognized tax benefits and other |  | (2.9 | )% |  | (3.5 | )% |  | (0.8 | )%
Effective Income Tax Rate |  | (5.3 | )% |  | 1,206.3 | % |  | 19.9 | %
____________
(1) | In 2017, nondeductible expenses primarily related to officers life insurance.
(2) | The “U.S. taxation of foreign profits” represents the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries.
Schedule of Allocation of Income Tax Expense Benefit | Total income tax expense (benefit) was allocated as follows:
|  | Year Ended December 31,
(in millions) |  | 2018 |  | 2017 |  | 2016
Pre-tax income |  | $ | 21 |  |  | $ | (193 | ) |  | $ | (244 | )
Discontinued operations |  | — |  |  | 3 |  |  | — |
Common shareholders' equity: |  |  |  |  |  |  |  |
Changes in defined benefit plans |  | — |  |  | — |  |  | 8 |
Stock option and incentive plans, net |  | — |  |  | — |  |  | — |
Total Income Tax Expense (Benefit) |  | $ | 21 |  |  | $ | (190 | ) |  | $ | (236 | )
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
(in millions) |  | 2018 |  | 2017 |  | 2016
Balance at January 1 |  | $ | 15 |  |  | $ | 14 |  |  | $ | 24 |
Additions related to current year |  | 3 |  |  | — |  |  | 1 |
Additions related to prior years positions |  | 5 |  |  | — |  |  | — |
Reductions related to prior years positions |  | — |  |  | — |  |  | (5 | )
Settlements with taxing authorities(1) |  | (1 | ) |  | — |  |  | (5 | )
Currency |  | (2 | ) |  | 1 |  |  | (1 | )
Balance at December 31 |  | $ | 20 |  |  | $ | 15 |  |  | $ | 14 |
_______________
(1) | 2018 and 2016 settlement resulted in $1 million and $5 million cash paid, respectively.
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred taxes were as follows:
|  | December 31,
(in millions) |  | 2018 |  | 2017
Deferred Tax Assets |  |  |  |
Net operating losses |  | $ | 46 |  |  | $ | 41 |
Operating reserves, accruals and deferrals |  | 68 |  |  | 85 |
Deferred compensation |  | 16 |  |  | 59 |
Pension |  | 2 |  |  | 15 |
Settlement reserves |  | 67 |  |  | 18 |
Other |  | 11 |  |  | 27 |
Subtotal |  | 210 |  |  | 245 |
Valuation allowance |  | (44 | ) |  | (35 | )
Total |  | $ | 166 |  |  | $ | 210 |
Deferred Tax Liabilities |  |  |  |
Unearned income |  | $ | 86 |  |  | $ | 134 |
Intangibles and goodwill |  | 341 |  |  | 413 |
Depreciation |  | 30 |  |  | 5 |
Other |  | 24 |  |  | 25 |
Total |  | $ | 481 |  |  | $ | 577 |
Total Deferred Taxes, Net |  | $ | (315 | ) |  | $ | (367 | )

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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://fasb.org/us-gaap/role/ref/legacyRef -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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