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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income from continuing operations by region

Income from continuing operations before taxes

			Years Ended December 31,
			2014		2013		2012
	U.S.	$	3,340	$	3,002	$	1,761
	Non-U.S.		2,478		2,410		2,114
		$	5,818	$	5,412	$	3,875

Tax Expense Continuing Operations Current and Deferred

Tax expense (benefit)
			Years Ended December 31,
			2014		2013		2012
	Tax expense (benefit) consists of
	Current:
	U.S. Federal	$	746	$	663	$	470
	U.S. State		39		97		10
	Non-U.S.		572		428		380
		$	1,357	$	1,188	$	860

	Deferred:
	U.S. Federal	$	114	$	160	$	85
	U.S. State		63		72		19
	Non-U.S.		(45)		30		(20)
			132		262		84
		$	1,489	$	1,450	$	944

Effective income tax rate reconciliation


	Years Ended December 31,
	2014		2013		2012
The U.S. federal statutory income tax rate is reconciled to our effective income tax rate as follows:
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
Taxes on non-U.S. earnings below U.S. tax rate⁽¹⁾	(7.0)		(7.2)		(7.1)
U.S. state income taxes⁽¹⁾	1.2		1.8		0.8
Manufacturing incentives	(1.0)		(0.9)		(1.7)
ESOP dividend tax benefit	(0.4)		(0.5)		(0.6)
Tax credits	(1.0)		(1.8)		(0.4)
Reserves for tax contingencies	(0.2)		0.6		(0.4)
All other items—net	(1.0)		(0.2)		(1.2)
	25.6	%	26.8	%	24.4	%

(1) Net of changes in valuation allowance

Deferred Tax Assets, Liabilities

	December 31,
Deferred tax assets:	2014		2013
Pension	$	573	$	32
Postretirement benefits other than pensions		441		499
Asbestos and environmental		477		437
Employee compensation and benefits		387		382
Other accruals and reserves		672		702
Net operating and capital losses		639		838
Tax credit carryforwards		199		266
Gross deferred tax assets		3,388		3,156
Valuation allowance		(560)		(614)
Total deferred tax assets	$	2,828	$	2,542

Deferred tax liabilities:
Property, plant and equipment	$	(612)	$	(654)
Intangibles		(1,060)		(1,126)
Other asset basis differences		(286)		(350)
Other		(7)		(22)
Total deferred tax liabilities		(1,965)		(2,152)
Net deferred taxes	$	863	$	390

Summary of Operating Loss Carryforwards

			Net Operating
	Expiration		and Capital Loss		Tax Credit
Jurisdiction	Period		Carryforwards		Carryforwards
U.S. Federal	2032	$	1	$	51
U.S. State	2034		2,200		35
Non-U.S.	2034		2,463		148
Total		$	4,664	$	234

Change in unrecognized tax benefits

	2014		2013		2012
Change in unrecognized tax benefits:
Balance at beginning of year	$	729	$	722	$	815
Gross increases related to current period tax positions		65		41		25
Gross increases related to prior periods tax positions		204		118		44
Gross decreases related to prior periods tax positions		(277)		(21)		(62)
Decrease related to resolutions of audits with tax authorities		(32)		(92)		(40)
Expiration of the statute of limitations for the assessment of taxes		(10)		(30)		(64)
Foreign currency translation		(20)		(9)		4
Balance at end of year	$	659	$	729	$	722

Summary of Income Tax Examinations

	Open Tax Years
	Based on Originally Filed Returns
Jurisdiction	Examination in	Examination not yet
Jurisdiction	progress	initiated
U.S. Federal	2010 - 2013	2013 - 2014
U.S. State	2007 - 2013	2006 - 2014
United Kingdom	N/A	2012 - 2014
Canada⁽¹⁾	2007 - 2013	2014
Germany⁽¹⁾	2006 - 2012	2013 - 2014
France	2008 - 2013	2004 - 2007, 2014
Netherlands	2009	2010 - 2014
Australia	N/A	2009 - 2014
China	2003 - 2012	2013 - 2014
India	1999 - 2012	2013 - 2014
Italy	2008 - 2013	2014

(1) Includes provincial or similar local jurisdictions, as applicable.

- 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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