INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

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	2017			2016			2015
Current:
U.S.	$	2,782		$	1,144		$	337
Non-U.S.	364			468			456
Total Current	3,146			1,612			793
Deferred:
U.S.	1,063			(101		)	(394		)
Non-U.S.	(53		)	(103		)	47
Total Deferred	1,010			(204		)	(347		)
Total Provision	$	4,156		$	1,408		$	446

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	2017					2016					2015
Earnings/(Loss) before income taxes:
U.S.	$	2,280				$	3,100				$	(1,329	)
Non-U.S.	2,851					2,815					3,406
Total	$	5,131				$	5,915				$	2,077
U.S. statutory rate	1,796			35.0	%	2,070			35.0	%	727			35.0	%
Deemed repatriation transition tax	2,611			50.9	%	—			—		—			—
Deferred tax remeasurement	285			5.6	%	—			—		—			—
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland	(561		)	(10.9	)%	(442		)	(7.5	)%	(535		)	(25.8	)%
U.S. Federal valuation allowance release	—			—		(29		)	(0.5	)%	(84		)	(4.0	)%
U.S. Federal, state and foreign contingent tax matters	72			1.4	%	87			1.5	%	56			2.7	%
U.S. Federal research based credits	(144		)	(2.8	)%	(144		)	(2.4	)%	(132		)	(6.4	)%
Goodwill allocated to divestitures	4			0.1	%	34			0.6	%	25			1.2	%
U.S. Branded Prescription Drug Fee	52			1.0	%	52			0.9	%	44			2.1	%
Non-deductible R&D charges	266			5.2	%	100			1.7	%	369			17.8	%
Puerto Rico excise tax	(131		)	(2.6	)%	(131		)	(2.2	)%	(55		)	(2.7	)%
Domestic manufacturing deduction	(78		)	(1.5	)%	(122		)	(2.1	)%	(17		)	(0.8	)%
State and local taxes (net of valuation allowance)	77			1.5	%	23			0.4	%	16			0.8	%
Foreign and other	(93		)	(1.9	)%	(90		)	(1.6	)%	32			1.6	%
	$	4,156		81.0	%	$	1,408		23.8	%	$	446		21.5	%

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	2017			2016
Deferred tax assets
Foreign net operating loss carryforwards	$	2,872		$	2,945
State net operating loss and credit carryforwards	143			114
U.S. Federal net operating loss and credit carryforwards	99			156
Deferred income	212			764
Milestone payments and license fees	386			534
Pension and postretirement benefits	131			358
Intercompany profit and other inventory items	651			1,241
Other foreign deferred tax assets	312			188
Share-based compensation	60			114
Internal transfer of intellectual property	—			629
Other	280			308
Total deferred tax assets	5,146			7,351
Valuation allowance	(2,827		)	(3,078		)
Deferred tax assets net of valuation allowance	2,319			4,273
Deferred tax liabilities
Depreciation	(11		)	(125		)
Acquired intangible assets	(216		)	(344		)
Goodwill and other	(527		)	(855		)
Total deferred tax liabilities	(754		)	(1,324		)
Deferred tax assets, net	$	1,565		$	2,949
Recognized as:
Deferred income taxes – non-current	$	1,610		$	2,996
Income taxes payable – non-current	(45		)	(47		)
Total	$	1,565		$	2,949

Summary of Valuation Allowance [Table Text Block]

Changes in the valuation allowance were as follows:

	Year Ended December 31,
Dollars in Millions	2017			2016			2015
Balance at beginning of year	$	3,078		$	3,534		$	4,259
Provision	50			39			71
Utilization	(335		)	(355		)	(436		)
Foreign currency translation	341			(142		)	(366		)
Acquisitions	2			2			6
Non U.S. rate change	(309		)	—			—
Balance at end of year	$	2,827		$	3,078		$	3,534

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	2017			2016			2015
Balance at beginning of year	$	995		$	944		$	934
Gross additions to tax positions related to current year	173			49			52
Gross additions to tax positions related to prior years	30			49			56
Gross additions to tax positions assumed in acquisitions	—			1			1
Gross reductions to tax positions related to prior years	(22		)	(22		)	(34		)
Settlements	(20		)	(13		)	(46		)
Reductions to tax positions related to lapse of statute	(13		)	(4		)	(9		)
Cumulative translation adjustment	12			(9		)	(10		)
Balance at end of year	$	1,155		$	995		$	944

Summary of Income Tax Examinations [Table Text Block]

Additional information regarding unrecognized tax benefits is as follows:

	Year Ended December 31,
Dollars in Millions	2017		2016		2015
Unrecognized tax benefits that if recognized would impact the effective tax rate	$	1,002	$	854	$	671
Accrued interest	148		112		93
Accrued penalties	15		17		16