INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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	2018		2017			2016
Current:
U.S.	$	485	$	2,782		$	1,144
Non-U.S.	450		364			468
Total Current	935		3,146			1,612
Deferred:
U.S.	29		1,063			(101		)
Non-U.S.	57		(53		)	(103		)
Total Deferred	86		1,010			(204		)
Total Provision	$	1,021	$	4,156		$	1,408

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

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

	% of Earnings Before Income Taxes
Dollars in Millions	2018					2017					2016
Earnings before income taxes:
U.S.	$	2,338				$	2,280				$	3,100
Non-U.S.	3,630					2,851					2,815
Total	$	5,968				$	5,131				$	5,915
U.S. statutory rate	1,253			21.0	%	1,796			35.0	%	2,070			35.0	%
Deemed repatriation transition tax	(56		)	(0.9	)%	2,611			50.9	%	—			—
Deferred tax remeasurement	—			—		285			5.6	%	—			—
Global intangible low taxed income (GILTI)	94			1.6	%	—			—		—			—
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland	(202		)	(3.4	)%	(561		)	(10.9	)%	(442		)	(7.5	)%
U.S. Federal valuation allowance	119			2.0	%	—			—		(29		)	(0.5	)%
U.S. Federal, state and foreign contingent tax matters	(55		)	(0.9	)%	72			1.4	%	87			1.5	%
U.S. Federal research based credits	(138		)	(2.3	)%	(144		)	(2.8	)%	(144		)	(2.4	)%
Goodwill allocated to divestitures	—			—		4			0.1	%	34			0.6	%
U.S. Branded Prescription Drug Fee	21			0.3	%	52			1.0	%	52			0.9	%
Non-deductible R&D charges	17			0.3	%	266			5.2	%	100			1.7	%
Puerto Rico excise tax	(152		)	(2.6	)%	(131		)	(2.6	)%	(131		)	(2.2	)%
Domestic manufacturing deduction	—			—		(78		)	(1.5	)%	(122		)	(2.1	)%
State and local taxes (net of valuation allowance)	67			1.1	%	77			1.5	%	23			0.4	%
Foreign and other	53			0.9	%	(93		)	(1.9	)%	(90		)	(1.6	)%
	$	1,021		17.1	%	$	4,156		81.0	%	$	1,408		23.8	%

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	2018			2017
Deferred tax assets
Foreign net operating loss carryforwards	$	2,978		$	2,872
State net operating loss and credit carryforwards	121			143
U.S. Federal net operating loss and credit carryforwards	67			99
Deferred income	188			212
Milestone payments and license fees	552			386
Pension and postretirement benefits	26			131
Intercompany profit and other inventory items	670			651
Other foreign deferred tax assets	327			312
Share-based compensation	54			60
Other	352			280
Total deferred tax assets	5,335			5,146
Valuation allowance	(3,193		)	(2,827		)
Deferred tax assets net of valuation allowance	2,142			2,319
Deferred tax liabilities
Depreciation	(61		)	(11		)
Acquired intangible assets	(220		)	(216		)
Goodwill and other	(533		)	(527		)
Total deferred tax liabilities	(814		)	(754		)
Deferred tax assets, net	$	1,328		$	1,565
Recognized as:
Deferred income taxes – non-current	$	1,371		$	1,610
Income taxes payable – non-current	(18		)	(45		)
Liabilities related to assets held-for-sale	(25		)	—
Total	$	1,328		$	1,565

Summary of Valuation Allowance [Table Text Block]

Changes in the valuation allowance were as follows:

	Year Ended December 31,
Dollars in Millions	2018			2017			2016
Balance at beginning of year	$	2,827		$	3,078		$	3,534
Provision	458			50			39
Utilization	(43		)	(335		)	(355		)
Foreign currency translation	(48		)	341			(142		)
Acquisitions	—			2			2
Non U.S. rate change	(1		)	(309		)	—
Balance at end of year	$	3,193		$	2,827		$	3,078

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	2018			2017			2016
Balance at beginning of year	$	1,155		$	995		$	944
Gross additions to tax positions related to current year	48			173			49
Gross additions to tax positions related to prior years	21			30			49
Gross additions to tax positions assumed in acquisitions	—			—			1
Gross reductions to tax positions related to prior years	(106		)	(22		)	(22		)
Settlements	2			(20		)	(13		)
Reductions to tax positions related to lapse of statute	(119		)	(13		)	(4		)
Cumulative translation adjustment	(6		)	12			(9		)
Balance at end of year	$	995		$	1,155		$	995

Summary of Income Tax Examinations [Table Text Block]

Additional information regarding unrecognized tax benefits is as follows:

	Year Ended December 31,
Dollars in Millions	2018		2017		2016
Unrecognized tax benefits that if recognized would impact the effective tax rate	$	853	$	1,002	$	854
Accrued interest	167		148		112
Accrued penalties	11		15		17