Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Income Before Income Taxes

Income Before Income Taxes
(Millions)		2014		2013		2012
United States		$	3,815	$	3,194	$	2,902
International			3,211		3,368		3,449
	Total	$	7,026	$	6,562	$	6,351

Provision for Income Taxes

Provision for Income Taxes
(Millions)			2014		2013		2012
Currently payable
	Federal		$	1,103	$	948	$	743
	State			108		91		75
	International			1,008		901		918
Deferred
	Federal			(171)		(123)		(3)
	State			(9)		(2)		10
	International			(11)		26		97
		Total	$	2,028	$	1,841	$	1,840

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities
(Millions)			2014		2013
Deferred tax assets:
	Accruals not currently deductible
		Employee benefit costs	$	148	$	140
		Product and other claims		152		155
		Miscellaneous accruals		137		130
	Pension costs			1,312		447
	Stock-based compensation			290		322
	Net operating/capital loss carryforwards			175		225
	Foreign tax credits			360		316
	Inventory			221		221
Gross deferred tax assets				2,795		1,956
Valuation allowance				(22)		(23)
Total deferred tax assets			$	2,773	$	1,933
Deferred tax liabilities:
	Product and other insurance receivables		$	(31)	$	(46)
	Accelerated depreciation			(804)		(813)
	Intangible amortization			(719)		(780)
	Other			(61)		(7)
Total deferred tax liabilities			$	(1,615)	$	(1,646)
Net deferred tax assets			$	1,158	$	287

Reconciliation of Effective Income Tax Rate

Reconciliation of Effective Income Tax Rate
		2014		2013		2012
Statutory U.S. tax rate		35.0	%	35.0	%	35.0	%
State income taxes - net of federal benefit		0.9		0.9		0.9
International income taxes - net		(5.8)		(6.3)		(4.2)
U.S. research and development credit		(0.4)		(0.7)		-
Reserves for tax contingencies		0.6		1.2		(1.9)
Domestic Manufacturer's deduction		(1.3)		(1.6)		(1.2)
All other - net		(0.1)		(0.4)		0.4
	Effective worldwide tax rate	28.9	%	28.1	%	29.0	%

Reconciliation of Federal, State and Foreign Tax Gross Unrecognized Tax Benefits

Federal, State and Foreign Tax
(Millions)	2014		2013		2012
Gross UTB Balance at January 1	$	659	$	528	$	594
Additions based on tax positions related to the current year		201		97		80
Additions for tax positions of prior years		30		158		114
Reductions for tax positions of prior years		(74)		(29)		(120)
Settlements		(154)		(17)		(50)
Reductions due to lapse of applicable statute of limitations		(79)		(78)		(90)
Gross UTB Balance at December 31	$	583	$	659	$	528
Net UTB impacting the effective tax rate at December 31	$	265	$	262	$	185