XML 46 R45.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Notes to Consolidated Financial Statements [Abstract]  
Schedule of Income before Income Tax Domestic and Foreign [Table Text Block] The sources of income from continuing operations before income taxes are:
(dollars in millions)201920182017
United States$3,207  $3,630  $2,990  
Foreign5,036  4,650  4,773  
$8,243  $8,280  $7,763  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] The income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 consisted of the following components:
(dollars in millions)201920182017
Current:
United States:
Federal$188  $442  $1,577  
State48  211  64  
Foreign2,024  1,238  1,140  
2,260  1,891  2,781  
Future:
United States:
Federal111  57  (27) 
State52  62  84  
Foreign(128) 616  5  
 35  735  62  
Income tax expense$2,295  $2,626  $2,843  
Attributable to items credited (charged) to equity$40  $501  $(128) 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:
201920182017
Statutory U.S. federal income tax rate21.0 %21.0 %35.0 %
Tax related separation activities8.8 %— %— %
Tax on international activities1.9 %0.9 %(6.4)%
Tax audit settlements(3.5)%— %(0.7)%
U.S. tax reform— %9.0 %8.9 %
Other(0.4)%0.8 %(0.2)%
Effective income tax rate27.8 %31.7 %36.6 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2019 and 2018 are as follows:
(dollars in millions)20192018
Future income tax benefits:
Insurance and employee benefits$1,205  $1,154  
Other asset basis differences829  1,013  
Other liability basis differences2,153  1,482  
Tax loss carryforwards622  583  
Tax credit carryforwards1,021  1,050  
Valuation allowances(616) (605) 
$5,214  $4,677  
Future income taxes payable:
Intangible assets$4,293  $4,462  
Other asset basis differences 2,904  2,159  
Other items, net143  123  
$7,340  $6,744  
Summary Of Tax Credit Carryforwards [Table Text Block] At December 31, 2019, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows:
(dollars in millions)Tax Credit
Carryforwards		Tax Loss
Carryforwards
Expiration period:
2020-2024$59  $393  
2025-202927  179  
2030-2039336  394  
Indefinite599  2,218  
Total$1,021  $3,184  
Summary Of Income Tax Contingencies [Table Text Block] A reconciliation of the beginning and ending amounts
of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is as follows: 

(dollars in millions)201920182017
Balance at January 1$1,619  $1,189  $1,086  
Additions for tax positions related to the current year131  192  192  
Additions for tax positions of prior years73  344  73  
Reductions for tax positions of prior years(101) (91) (91) 
Settlements(375) (15) (71) 
Balance at December 31$1,347  $1,619  $1,189  
Gross interest expense related to unrecognized tax benefits$57  $37  $34  
Total accrued interest balance at December 31$249  $255  $215