Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Income Before Income Taxes

Income Before Income Taxes

(Millions)	2015		2014		2013
United States	$	4,399	$	3,815	$	3,194
International		2,424		3,211		3,368
Total	$	6,823	$	7,026	$	6,562

Provision for Income Taxes

Provision for Income Taxes

(Millions)	2015		2014		2013
Currently payable
Federal	$	1,338	$	1,103	$	948
State		101		108		91
International		566		1,008		901
Deferred
Federal		(55)		(171)		(123)
State		6		(9)		(2)
International		26		(11)		26
Total	$	1,982	$	2,028	$	1,841

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities

(Millions)	2015		2014
Deferred tax assets:
Accruals not currently deductible
Employee benefit costs	$	175	$	148
Product and other claims		146		152
Miscellaneous accruals		114		137
Pension costs		1,120		1,312
Stock-based compensation		305		290
Net operating/capital loss carryforwards		109		175
Foreign tax credits		25		360
Inventory		46		52
Other		—		30
Gross deferred tax assets		2,040		2,656
Valuation allowance		(31)		(22)
Total deferred tax assets	$	2,009	$	2,634
Deferred tax liabilities:
Product and other insurance receivables	$	(28)	$	(31)
Accelerated depreciation		(736)		(804)
Intangible amortization		(1,017)		(719)
Currency translation		(199)		(91)
Other		(70)		—
Total deferred tax liabilities	$	(2,050)	$	(1,645)
Net deferred tax assets (liabilities)	$	(41)	$	989

Reconciliation of Effective Income Tax Rate

Reconciliation of Effective Income Tax Rate

	2015		2014		2013
Statutory U.S. tax rate	35.0	%	35.0	%	35.0	%
State income taxes - net of federal benefit	1.1		0.9		0.9
International income taxes - net	(3.8)		(5.8)		(6.3)
U.S. research and development credit	(0.5)		(0.4)		(0.7)
Reserves for tax contingencies	(1.0)		0.6		1.2
Domestic Manufacturer’s deduction	(1.8)		(1.3)		(1.6)
All other - net	0.1		(0.1)		(0.4)
Effective worldwide tax rate	29.1	%	28.9	%	28.1	%

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

Federal, State and Foreign Tax

(Millions)	2015		2014		2013
Gross UTB Balance at January 1	$	583	$	659	$	528
Additions based on tax positions related to the current year		77		201		97
Additions for tax positions of prior years		140		30		158
Reductions for tax positions of prior years		(399)		(74)		(29)
Settlements		(4)		(154)		(17)
Reductions due to lapse of applicable statute of limitations		(16)		(79)		(78)
Gross UTB Balance at December 31	$	381	$	583	$	659
Net UTB impacting the effective tax rate at December 31	$	369	$	265	$	262