Entity information:
Income Taxes
On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the "Tax Act") was signed into law. The Tax Act, among other changes, reduces U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018, and also requires a one-time deemed repatriation of foreign earnings at specified rates. The corporate income tax rate change resulted in a revaluation of the Company's deferred tax assets and liabilities. The accounting guidance on income taxes requires that the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. The SEC staff guidance allows registrants to record provisional amounts during a measurement period when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. Under the above guidance, the Company made a provisional adjustment of $591 of income tax benefit in the 2017 consolidated financial statements for items that the Company could reasonably estimate such as revaluation of deferred tax assets and liabilities and a one-time U.S. tax on the mandatory deemed repatriation of the Company's post-1986 foreign earnings. The Company will continue to assess the income tax effects of the Tax Act based on further standard setting activities, any transition provisions, and changes in the facts and circumstances of the Company's tax position, during the measurement period.
The components of income before income taxes are as follows:
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Domestic
 
$
917

 
$
476

 
$
880

Foreign
 
164

 
82

 
83

 
 
$
1,081

 
$
558

 
$
963


The Company's provision for (benefit from) income taxes consists of the following:
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Current
 
 
 
 
 
 
Federal
 
$
231

 
$
8

 
$
225

State
 
18

 
9

 
24

Foreign
 
27

 
20

 
9

 
 
276

 
37

 
258

Deferred
 
 
 
 
 
 
Federal
 
(557
)
 
136

 
30

State
 
25

 
(33
)
 
3

Foreign
 
(2
)
 
(2
)
 
7

 
 
(534
)
 
101

 
40

Total provision for (benefit from) income taxes
 
$
(258
)
 
$
138

 
$
298


A reconciliation of taxes computed at the statutory rate to the Company's income tax expense is as follows:
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Provision for federal income tax, at statutory rate
 
$
378

 
$
195

 
$
337

State income tax provision, net of federal income tax effect
 
26

 
1

 
17

Foreign income tax rate differential
 
(33
)
 
(8
)
 
(13
)
Manufacturing deduction
 
(23
)
 
(2
)
 
(24
)
Depletion
 
(7
)
 
(2
)
 
—

Noncontrolling interests
 
(9
)
 
(7
)
 
(7
)
Tax on previously held shares of Axiall Corporation and certain
   other acquisition related items
 
—

 
(13
)
 
—

Tax Act related adjustment
 
(591
)
 
—

 
—

Changes in state apportionment and other state adjustments
 
2

 
(17
)
 
—

Research and development expenditures and adjustments related to prior
   years' tax returns
 
(1
)
 
(8
)
 
—

Other, net
 
—

 
(1
)
 
(12
)
 
 
$
(258
)
 
$
138

 
$
298


The tax effects of the principal temporary differences between financial reporting and income tax reporting at December 31 are as follows:
 
 
2017
 
2016
Net operating loss carryforward
 
$
64

 
$
70

Credit carryforward
 
26

 
24

Accruals
 
53

 
67

Pension
 
79

 
114

Allowance for doubtful accounts
 
5

 
12

Inventories
 
11

 
13

Other
 
15

 
36

Deferred taxes assets—total
 
253

 
336

Property, plant and equipment
 
(906
)
 
(1,374
)
Intangibles
 
(154
)
 
(221
)
Turnaround costs
 
(8
)
 
(1
)
Basis difference—consolidated partnerships
 
(209
)
 
(308
)
Other
 
(18
)
 
(17
)
Deferred tax liabilities—total
 
(1,295
)
 
(1,921
)
Valuation allowance
 
(56
)
 
(53
)
Total net deferred tax liabilities
 
$
(1,098
)
 
$
(1,638
)
 
 
 
 
 
Balance sheet classifications
 
 
 
 
Noncurrent deferred tax asset
 
$
13

 
$
12

Noncurrent deferred tax liability
 
(1,111
)
 
(1,650
)
Total net deferred tax liabilities
 
$
(1,098
)
 
$
(1,638
)

At December 31, 2017, the Company had foreign and state net operating loss carryforwards of approximately $405, which will expire in varying amounts between 2018 and 2037 and are subject to certain limitations on an annual basis. Management believes the Company will realize the benefit of a portion of the net operating loss carryforwards before they expire, but to the extent that the full benefit may not be realized, a valuation allowance has been recorded. The valuation allowance increased by $3 in 2017 mostly as a result of the revaluation of the Company's deferred tax assets.
The Tax Act requires a one-time U.S. tax at a specified rate for a mandatory deemed repatriation of post-1986 foreign earnings. For the quarter ended December 31, 2017, the Company recorded, on a provisional basis, approximately $5 of U.S. tax expense related to this one-time repatriation tax and elected to pay the tax over eight years as allowed by the Tax Act.
For the year ended December 31, 2017, the Company accrued $7 of foreign tax as it is no longer permanently reinvested with respect to the outside basis difference for all of its foreign subsidiaries.
The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is no longer subject to examinations by tax authorities before the year 2011.