Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Taxes on income

For financial reporting purposes, income before income taxes includes the following components: 

For the Years Ended December 31,
(In millions of dollars)	2014		2013		2012
Income before income taxes:
U.S.	$	313	$	407	$	398
Other	1,744		1,566		1,298
	$	2,057	$	1,973	$	1,696
The expense (benefit) for income taxes is comprised of:
Income taxes:
Current–
U.S. Federal	$	80	$	102	$	42
Other national governments	369		264		336
U.S. state and local	26		45		24
	475		411		402
Deferred–
U.S. Federal	27		12		(18		)
Other national governments	62		149		89
U.S. state and local	22		22		19
	111		183		90
Total income taxes	$	586	$	594	$	492

Deferred income tax assets and liabilities

The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:

December 31,
(In millions of dollars)	2014		2013
Deferred tax assets:
Accrued expenses not currently deductible	$	572	$	570
Differences related to non-U.S. operations (a)	119		140
Accrued retirement benefits U.S.	638		297
Net operating losses (b)	57		79
Income currently recognized for tax	75		74
Foreign tax credit carryforwards	109		157
Other	84		90
	$	1,654	$	1,407

Deferred tax liabilities:
Differences related to non-U.S. operations	$131		$112
Depreciation and amortization	307		273
Accrued retirement & postretirement benefits - non-U.S. operations	41		89
Other	5		5
	$	484	$	479

(a) Net of valuation allowances of $15 million in 2014 and $12 millionin 2013.

(b) Net of valuation allowances of $82 million in 2014 and $70 million in 2013.

December 31,
(In millions of dollars)	2014		2013
Balance sheet classifications:
Current assets	$	521	$	482
Other assets	$	876	$	626
Current liabilities	$	28	$	18
Other liabilities	$	199	$	162

U.S. Federal statutory income tax rate

A reconciliation from the U.S. Federal statutory income tax rate to the Company’s effective income tax rate is shown below.

For the Years Ended December 31,	2014		2013		2012
U.S. Federal statutory rate	35.0	%	35.0	%	35.0	%
U.S. state and local income taxes—net of U.S. Federal income tax benefit	1.7		2.1		1.9
Differences related to non-U.S. operations	(7.5	)	(6.0	)	(6.1	)
Other	(0.7	)	(1.0	)	(1.8	)
Effective tax rate	28.5	%	30.1	%	29.0	%

Unrecognized tax benefits

Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012:

(In millions of dollars)	2014			2013			2012
Balance at January 1,	$	128		$	117		$	143
Additions, based on tax positions related to current year	13			16			26
Additions for tax positions of prior years	3			35			35
Reductions for tax positions of prior years	(29		)	(7		)	(41		)
Settlements	(4		)	(3		)	(6		)
Lapses in statutes of limitation	(14		)	(30		)	(40		)
Balance at December 31,	$	97		$	128		$	117