INCOME TAXES Income Taxes (Notes)

6 Months Ended

Jun. 30, 2016

Income Tax Expense (Benefit), Continuing Operations [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

During the second quarter of 2016, an adjustment was made to a reserve for a tax matter regarding a historical change in the legal ownership structure of a former nonconsolidated affiliate. The adjustment arose due to recent proceedings and the Corporation’s ongoing assessment of the unrecognized tax benefits. The adjustment impacted multiple jurisdictions and resulted in an increase of $396 million to “Other noncurrent obligations” and an increase of $339 million to “Deferred income tax assets” in the consolidated balance sheets, resulting in an unfavorable impact of $57 million to “Provision for income taxes” in the consolidated statements of income.

The following table provides a reconciliation of the Corporation's unrecognized tax benefits for the periods ended June 30, 2016 and December 31, 2015:

Total Gross Unrecognized Tax Benefits In millions	Jun 30, 2016		Dec 31, 2015
Balance at January 1	$	68	$	1
Increases related to positions taken on items from prior years	300		67
Balance at end of period	$	368	$	68

At June 30, 2016, the total amount of unrecognized tax benefits which would impact the effective tax rate if recognized is $1 million ($1 million at December 31, 2015). The increase in unrecognized tax benefits relates to litigation in a foreign jurisdiction that, if paid, is creditable in the United States.

Interest and penalties associated with uncertain tax positions are recognized as components of “Provision for income taxes,” in the consolidated statements of income and totaled a charge of $90 million for the three months ended June 30, 2016 (insignificant for the three months ended June 30, 2015). During the six months ended June 30, 2016, the Corporation recognized a charge of $82 million for interest and penalties (insignificant for the six months ended June 30, 2015). The Corporation’s accrual for interest and penalties associated with uncertain tax positions was $121 million at June 30, 2016 and $38 million at December 31, 2015.