INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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	2016			2015			2014
Current:
U.S.	$	1,144		$	337		$	334
Non-U.S.	468			456			560
Total Current	1,612			793			894
Deferred:
U.S.	(101		)	(394		)	(403		)
Non-U.S.	(103		)	47			(139		)
Total Deferred	(204		)	(347		)	(542		)
Total Provision	$	1,408		$	446		$	352

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	2016					2015					2014
Earnings/(Loss) before income taxes:
U.S.	$	3,100				$	(1,329	)			$	(349	)
Non-U.S.	2,815					3,406					2,730
Total	$	5,915				$	2,077				$	2,381
U.S. statutory rate	2,070			35.0	%	727			35.0	%	833			35.0	%
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland	(442		)	(7.5	)%	(535		)	(25.8	)%	(509		)	(21.4	)%
U.S. tax effect of capital losses	—			—		—			—		(361		)	(15.2	)%
U.S. Federal valuation allowance release	(29		)	(0.5	)%	(84		)	(4.0	)%	—			—
U.S. Federal, state and foreign contingent tax matters	87			1.5	%	56			2.7	%	228			9.6	%
U.S. Federal research based credits	(144		)	(2.4	)%	(132		)	(6.4	)%	(131		)	(5.4	)%
Goodwill allocated to divestitures	34			0.6	%	25			1.2	%	210			8.8	%
U.S. Branded Prescription Drug Fee	52			0.9	%	44			2.1	%	84			3.5	%
R&D charges	100			1.7	%	369			17.8	%	52			2.2	%
Puerto Rico excise tax	(131		)	(2.2	)%	(55		)	(2.7	)%	(28		)	(1.2	)%
Domestic manufacturing deduction	(122		)	(2.1	)%	(17		)	(0.8	)%	—			—
State and local taxes (net of valuation allowance)	23			0.4	%	16			0.8	%	20			0.8	%
Foreign and other	(90		)	(1.6	)%	32			1.6	%	(46		)	(1.9	)%
	$	1,408		23.8	%	$	446		21.5	%	$	352		14.8	%

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	2016			2015
Deferred tax assets
Foreign net operating loss carryforwards	$	2,945		$	3,090
U.S. capital loss carryforwards	4			39
State net operating loss and credit carryforwards	114			324
U.S. Federal net operating loss and credit carryforwards	156			173
Deferred income	764			1,009
Milestone payments and license fees	534			560
Pension and postretirement benefits	358			462
Intercompany profit and other inventory items	1,241			607
Other foreign deferred tax assets	188			172
Share-based compensation	114			122
Legal and other settlements	5			63
Repatriation of foreign earnings	12			(1		)
Internal transfer of intellectual property	629			635
Other	287			337
Total deferred tax assets	7,351			7,592
Valuation allowance	(3,078		)	(3,534		)
Deferred tax assets net of valuation allowance	4,273			4,058
Deferred tax liabilities
Depreciation	(125		)	(105		)
Acquired intangible assets	(344		)	(338		)
Goodwill and other	(855		)	(802		)
Total deferred tax liabilities	(1,324		)	(1,245		)
Deferred tax assets, net	$	2,949		$	2,813
Recognized as:
Deferred income taxes – non-current	$	2,996		$	2,844
Income taxes payable – non-current	(47		)	(31		)
Total	$	2,949		$	2,813

Summary of Valuation Allowance [Table Text Block]

Changes in the valuation allowance were as follows:

	Year Ended December 31,
Dollars in Millions	2016			2015			2014
Balance at beginning of year	$	3,534		$	4,259		$	4,623
Provision	39			71			140
Utilization	(355		)	(436		)	(109		)
Foreign currency translation	(142		)	(366		)	(395		)
Acquisitions	2			6			—
Balance at end of year	$	3,078		$	3,534		$	4,259

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	2016			2015			2014
Balance at beginning of year	$	944		$	934		$	756
Gross additions to tax positions related to current year	49			52			106
Gross additions to tax positions related to prior years	49			56			218
Gross additions to tax positions assumed in acquisitions	1			1			—
Gross reductions to tax positions related to prior years	(22		)	(34		)	(57		)
Settlements	(13		)	(46		)	(65		)
Reductions to tax positions related to lapse of statute	(4		)	(9		)	(12		)
Cumulative translation adjustment	(9		)	(10		)	(12		)
Balance at end of year	$	995		$	944		$	934

Summary of Income Tax Examinations [Table Text Block]

Additional information regarding unrecognized tax benefits is as follows:

	Year Ended December 31,
Dollars in Millions	2016		2015		2014
Unrecognized tax benefits that if recognized would impact the effective tax rate	$	854	$	671	$	668
Accrued interest	112		93		96
Accrued penalties	17		16		17
Interest expense	22		2		27
Penalty expense/(benefit)	4		1		(7		)