INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes [Table Text Block]

The provision/(benefit) for income taxes consisted of:

	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Current:
U.S.	$	334		$	375		$	627
Non-U.S.	560			427			442
Total Current	894			802			1,069
Deferred:
U.S.	(403		)	(390		)	(1,164		)
Non-U.S	(139		)	(101		)	(66		)
Total Deferred	(542		)	(491		)	(1,230		)
Total Provision/(Benefit)	$	352		$	311		$	(161	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliation of the effective tax/(benefit) rate to the U.S. statutory Federal income tax rate was:

	% of Earnings Before Income Taxes
Dollars in Millions	2014					2013					2012
Earnings/(Loss) before income taxes:
U.S.	$	(349	)			$	(135	)			$	(271	)
Non-U.S.	2,730					3,026					2,611
Total	$	2,381				$	2,891				$	2,340
U.S. statutory rate	833			35.0	%	1,012			35.0	%	819			35.0	%
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland	(509		)	(21.4	)%	(620		)	(21.4	)%	(688		)	(29.4	)%
U.S. tax effect of capital losses	(361		)	(15.2	)%	—			—		(392		)	(16.7	)%
U.S. Federal, state and foreign contingent tax matters	228			9.6	%	134			4.6	%	66			2.8	%
U.S. Federal research based credits	(131		)	(5.4	)%	(220		)	(7.6	)%	(31		)	(1.4	)%
Goodwill related to diabetes divestiture	210			8.8	%	—			—		—			—
U.S. Branded Prescription Drug Fee	84			3.5	%	63			2.2	%	90			3.8	%
R&D charge	52			2.2	%	—			—		—			—
State and local taxes (net of valuation allowance)	20			0.8	%	25			0.9	%	20			0.9	%
Foreign and other	(74		)	(3.1	)%	(83		)	(2.9	)%	(45		)	(1.9	)%
	$	352		14.8	%	$	311		10.8	%	$	(161	)	(6.9	)%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of current and non-current deferred income tax assets/(liabilities) were as follows:

	December 31,
Dollars in Millions	2014			2013
Deferred tax assets
Foreign net operating loss carryforwards	$	3,473		$	3,892
Milestone payments and license fees	440			483
Deferred income	1,163			2,168
U.S. capital loss carryforwards	562			784
U.S. Federal net operating loss carryforwards	135			138
Pension and postretirement benefits	467			120
State net operating loss and credit carryforwards	337			377
Intercompany profit and other inventory items	531			495
U.S. Federal tax credit carryforwards	26			23
Other foreign deferred tax assets	202			187
Share-based compensation	95			107
Legal settlements	14			20
Repatriation of foreign earnings	94			49
Internal transfer of intellectual property	247			223
Other	311			357
Total deferred tax assets	8,097			9,423
Valuation allowance	(4,259		)	(4,623		)
Net deferred tax assets	3,838			4,800
Deferred tax liabilities
Depreciation	(128		)	(148		)
Acquired intangible assets	(390		)	(2,567		)
Other	(832		)	(780		)
Total deferred tax liabilities	(1,350		)	(3,495		)
Deferred tax assets, net	$	2,488		$	1,305
Recognized as:
Assets held-for-sale	$	—		$	125
Deferred income taxes – current	1,644			1,701
Deferred income taxes – non-current	915			508
Income taxes payable – current	(11		)	(10		)
Liabilities related to assets held-for-sale	—			(946		)
Income taxes payable – non-current	(60		)	(73		)
Total	$	2,488		$	1,305

Summary of Valuation Allowance [Table Text Block]

Changes in the valuation allowance were as follows:

	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Balance at beginning of year	$	4,623		$	4,404		$	3,920
Provision	140			252			494
Utilization	(109		)	(68		)	(145		)
Foreign currency translation	(395		)	40			39
Acquisitions	—			(5		)	96
Balance at end of year	$	4,259		$	4,623		$	4,404

Summary of Income Tax Contingencies [Table Text Block]

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

	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Balance at beginning of year	$	756		$	642		$	628
Gross additions to tax positions related to current year	106			74			46
Gross additions to tax positions related to prior years	218			108			66
Gross additions to tax positions assumed in acquisitions	—			—			31
Gross reductions to tax positions related to prior years	(57		)	(87		)	(57		)
Settlements	(65		)	26			(54		)
Reductions to tax positions related to lapse of statute	(12		)	(8		)	(19		)
Cumulative translation adjustment	(12		)	1			1
Balance at end of year	$	934		$	756		$	642

Summary of Income Tax Examinations [Table Text Block]

Additional information regarding unrecognized tax benefits is as follows:

	Year Ended December 31,
Dollars in Millions	2014			2013		2012
Unrecognized tax benefits that if recognized would impact the effective tax rate	$	668		$	508	$	633
Accrued interest	96			83		59
Accrued penalties	17			34		32
Interest expense	27			24		14
Penalty expense/(benefit)	(7		)	3		16