INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Provision for Income Taxes [Table Text Block]

Dollars in Millions			Year Ended December 31,
Current:			2012		2011		2010
	U.S.		$	627	$	864	$	797
	Non-U.S.			442		442		339
		Total Current		1,069		1,306		1,136
Deferred:
	U.S.			(1,164)		406		438
	Non-U.S			(66)		9		(16)
		Total Deferred		(1,230)		415		422
Total Provision/(Benefit)			$	(161)	$	1,721	$	1,558

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

		% of Earnings Before Income Taxes
Dollars in Millions		2012			2011			2010
Earnings before income taxes:
	U.S.	$	(271)		$	4,336		$	3,833
	Non-U.S.		2,611			2,645			2,238
	Total	$	2,340		$	6,981		$	6,071
U.S. statutory rate			819	35.0%		2,443	35.0%		2,125	35.0%
Non-tax deductible annual pharmaceutical company fee			90	3.8%		80	1.2%		-	-
Tax effect of foreign subsidiaries' earnings previously
	considered indefinitely reinvested offshore		-	-		-	-		207	3.4%
Foreign tax effect of certain operations in Ireland, Puerto
	Rico and Switzerland		(688)	(29.4)%		(593)	(8.5)%		(694)	(11.4)%
State and local taxes (net of valuation allowance)			20	0.9%		33	0.5%		43	0.7%
U.S. Federal, state and foreign contingent tax matters			66	2.8%		(161)	(2.3)%		(131)	(2.1)%
U.S. Federal research and development tax credit			-	-		(69)	(1.0)%		(61)	(1.0)%
U.S. tax effect of capital losses			(392)	(16.7)%		-	-		-	-
Foreign and other			(76)	(3.3)%		(12)	(0.2)%		69	1.1%
		$	(161)	(6.9)%	$	1,721	24.7%	$	1,558	25.7%

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

	December 31,
Dollars in Millions	2012		2011
Deferred tax assets
Foreign net operating loss carryforwards	$	3,722	$	3,674
Milestone payments and license fees		550		574
Deferred income		2,083		573
U.S. capital losses		794		-
U.S. Federal net operating loss carryforwards		170		251
Pension and postretirement benefits		693		755
State net operating loss and credit carryforwards		346		344
Intercompany profit and other inventory items		288		331
U.S. Federal tax credit carryforwards		31		109
Other foreign deferred tax assets		197		112
Share-based compensation		111		111
Legal settlements		45		46
Repatriation of foreign earnings		86		-
Other		344		233
Total deferred tax assets		9,460		7,113
Valuation allowance		(4,404)		(3,920)
Net deferred tax assets		5,056		3,193

Deferred tax liabilities
Depreciation		(147)		(118)
Repatriation of foreign earnings		-		(31)
Acquired intangible assets		(2,768)		(593)
Other		(734)		(676)
Total deferred tax liabilities		(3,649)		(1,418)
Deferred tax assets, net	$	1,407	$	1,775

Recognized as:
Deferred income taxes – current	$	1,597	$	1,200
Deferred income taxes – non-current		203		688
U.S. and foreign income taxes payable – current		(10)		(6)
Deferred income taxes – non-current		(383)		(107)
Total	$	1,407	$	1,775

Summary of Valuation Allowance [Table Text Block]

	Year Ended December 31,
Dollars in Millions	2012		2011		2010
Balance at beginning of year	$	3,920	$	1,863	$	1,791
Provision		494		2,410		92
Utilization		(145)		(135)		(22)
Foreign currency translation		39		(222)		(6)
Acquisitions		96		4		8
Balance at end of year	$	4,404	$	3,920	$	1,863

Summary of Income Tax Contingencies [Table Text Block]

	Year Ended December 31,
Dollars in Millions	2012		2011		2010
Balance at beginning of year	$	628	$	845	$	968
Gross additions to tax positions related to current year		46		44		46
Gross additions to tax positions related to prior years		66		105		177
Gross additions to tax positions assumed in acquisitions		31		1		11
Gross reductions to tax positions related to prior years		(57)		(325)		(196)
Settlements		(54)		(30)		(153)
Reductions to tax positions related to lapse of statute		(19)		(7)		(7)
Cumulative translation adjustment		1		(5)		(1)
Balance at end of year	$	642	$	628	$	845

Schedule Of Unrecognized Tax Benefits Additional Information [Table Text Block]

	Year Ended December 31,
Dollars in Millions	2012		2011		2010
Unrecognized tax benefits that if recognized would impact the effective tax rate	$	633	$	570	$	818

Accrued interest		59		51		51
Accrued penalties		32		25		23

Interest expense/(benefit)		14		10		(12)
Penalty expense/(benefit)		16		7		(4)

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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