Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Income Taxes and Provision For Income Taxes

Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2015, 2014 and 2013:

(in millions)	2015			2014			2013
Earnings before income taxes	$	9,615		$	10,650		$	12,542
Provision for income taxes:
United States federal and state:
Current	$	(56	)	$	(56	)	$	247
Deferred	117			162			(5		)
Total United States	61			106			242
Outside United States:
Current	2,762			3,215			3,451
Deferred	(135		)	(224		)	(23		)
Total outside United States	2,627			2,991			3,428
Total provision for income taxes	$	2,688		$	3,097		$	3,670

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)	2015			2014			2013
Balance at January 1,	$	123		$	114		$	124
Additions based on tax positions related to the current year	17			20			15
Additions for tax positions of previous years	6			11			3
Reductions for tax positions of prior years	(42		)	(3		)	(2		)
Reductions due to lapse of statute of limitations	(7		)	(8		)	(16		)
Settlements	(1		)	(3		)	(10		)
Other	(8		)	(8		)	—
Balance at December 31,	$	88		$	123		$	114

Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties

Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows:

(in millions)	December 31, 2015			December 31, 2014			December 31, 2013
Unrecognized tax benefits	$	88		$	123		$	114
Accrued interest and penalties	28			40			24
Tax credits and other indirect benefits	(40		)	(54		)	(56		)
Liability for tax contingencies	$	76		$	109		$	82

Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate and U.S. Federal Statutory Rate

The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2015, 2014 and 2013:

	2015		2014		2013
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) resulting from:
Foreign rate differences	(12.3	)	(11.2	)	(12.2	)
Dividend repatriation cost	5.7		5.0		6.6
Other	(0.4	)	0.3		(0.1	)
Effective tax rate	28.0	%	29.1	%	29.3	%

Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following:

	At December 31,
(in millions)	2015			2014
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	275		$	274
Accrued pension costs	230			247
Inventory	174			198
Accrued liabilities	153			147
Other	164			162
Total deferred income tax assets	996			1,028
Deferred income tax liabilities:
Trade names	(593		)	(677		)
Property, plant and equipment	(218		)	(260		)
Unremitted earnings	(554		)	(559		)
Foreign exchange	(532		)	(348		)
Total deferred income tax liabilities	(1,897		)	(1,844		)
Net deferred income tax liabilities	$	(901	)	$	(816	)