Income Taxes (Tables)



	Years Ended December 31,
	2018		2017		2016
U.S. income	$	4,433	$	8,399	$	9,989
Non-U.S. income (loss)	1,953		1,332		(263		)
Income before income taxes and equity income	$	6,386	$	9,731	$	9,726



	Years Ended December 31,
	2018			2017			2016
Current income tax expense (benefit)
U.S. federal	$	(104	)	$	18		$	(126	)
U.S. state and local	113			83			65
Non-U.S.	577			552			572
Total current income tax expense	586			653			511
Deferred income tax expense (benefit)
U.S. federal	(578		)	7,831			1,865
U.S. state and local	250			(187		)	264
Non-U.S.	216			3,236			99
Total deferred income tax expense (benefit)	(112		)	10,880			2,228
Total income tax expense	$	474		$	11,533		$	2,739



	Years Ended December 31,
	2018			2017			2016
Income tax expense at U.S. federal statutory income tax rate	$	1,341		$	3,406		$	3,404
State and local tax expense	282			(76		)	190
Non-U.S. income taxed at other than the U.S. federal statutory tax rate	90			(145		)	(61		)
U.S. tax impact on Non-U.S. income	(822		)	(941		)	(894		)
Change in valuation allowances	1,695			2,712			237
Change in tax laws	(134		)	7,194			147
General business credits and manufacturing incentives	(695		)	(428		)	(342		)
Capital loss expiration	107			—			—
Settlements of prior year tax matters	(188		)	(256		)	(46		)
Realization of basis differences in affiliates	(59		)	—			(94		)
German statutory approval of net operating losses	(990		)	—			—
Other adjustments	(153		)	67			198
Total income tax expense	$	474		$	11,533		$	2,739

The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:



	December 31, 2018			December 31, 2017
Deferred tax assets
Postretirement benefits other than pensions	$	1,584		$	1,948
Pension and other employee benefit plans	3,020			3,285
Warranties, dealer and customer allowances, claims and discounts	6,307			5,675
U.S. capitalized research expenditures	5,176			4,413
U.S. operating loss and tax credit carryforwards(a)	8,591			8,578
Non-U.S. operating loss and tax credit carryforwards(b)	6,393			5,103
Miscellaneous	2,034			1,697
Total deferred tax assets before valuation allowances	33,105			30,699
Less: valuation allowances	(7,976		)	(6,690		)
Total deferred tax assets	25,129			24,009
Deferred tax liabilities
Property, plant and equipment	1,098			418
Intangible assets	729			735
Total deferred tax liabilities	1,827			1,153
Net deferred tax assets	$	23,302		$	22,856

_________


(a)	At December 31, 2018 U.S. operating loss and tax credit carryforwards of $8.6 billion expire through 2038 if not utilized.


(b)	At December 31, 2018 Non-U.S. operating loss and tax credit carryforwards of $1.2 billion expire through 2037 if not utilized and the remaining balance of $5.2 billion may be carried forward indefinitely.

The following table summarizes activity of the total amounts of unrecognized tax benefits:



	Years Ended December 31,
	2018			2017			2016
Balance at beginning of period	$	1,557		$	1,182		$	1,337
Additions to current year tax positions	292			160			49
Additions to prior years' tax positions	264			448			96
Reductions to prior years' tax positions	(244		)	(195		)	(192		)
Reductions in tax positions due to lapse of statutory limitations	(38		)	(44		)	(103		)
Settlements	(450		)	(11		)	(1		)
Other	(40		)	17			(4		)
Balance at end of period	$	1,341		$	1,557		$	1,182