Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Our provision (benefit) for income taxes consists of (table in millions):

	2014			2013			2012
Federal:
Current	$	955		$	698		$	792
Deferred	(308		)	(163		)	(80		)
	647			535			712
State:
Current	81			84			74
Deferred	(70		)	(23		)	(12		)
	11			61			62
Foreign:
Current	228			192			169
Deferred	(18		)	(16		)	(25		)
	210			176			144
Total provision for income taxes	$	868		$	772		$	918

Reconciliation of Income Tax Provision to Statutory Federal Tax Rate

A reconciliation of our income tax provision to the statutory federal tax rate is as follows:

	2014		2013		2012
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal taxes	2.6		0.7		0.5
Resolution of uncertain tax positions	(0.9	)	(0.9	)	(0.5	)
Tax rate differential for international jurisdictions and other international related tax items	(11.3	)	(15.0	)	(13.6	)
U.S. tax credits	(1.9	)	(3.8	)	(0.2	)
Change in valuation allowance	(2.3	)	0.7		0.8
U.S. domestic production activities deduction	(1.8	)	(1.5	)	(1.3	)
International reorganization of acquired companies	—		0.6		0.3
Permanent items	3.9		3.8		2.8
Other	(0.2	)	0.4		0.3
	23.1	%	20.0	%	24.1	%

Components of Current and Noncurrent Deferred Tax Assets and Liabilities

The components of the current and non-current deferred tax assets and liabilities are as follows (table in millions):

	December 31, 2014						December 31, 2013
	Deferred Tax Asset			Deferred Tax Liability			Deferred Tax Asset			Deferred Tax Liability
Current:
Accounts and notes receivable	$	59		$	—		$	96		$	—
Inventory	73			—			73			—
Accrued expenses	305			—			311			—
Deferred revenue	472			—			365			—
Equity	148			—			83			—
Credit carryforwards	21			—			4			—
Net operating losses	23			—			28			—
Total current	1,101			—			960			—
Property, plant and equipment, net	—			(323		)	—			(291		)
Intangible and other assets, net	—			(605		)	—			(680		)
Equity	106			—			139			—
Deferred revenue	346			—			253			—
Other non-current liabilities	23			—			—			(13		)
Credit carryforward	234			—			280			—
Net operating losses	93			—			78			—
Other comprehensive loss	103			—			109			—
Total non-current	905			(928		)	859			(984		)
Gross deferred tax assets and liabilities	2,006			(928		)	1,819			(984		)
Valuation allowance	(126		)	—			(211		)	—
Total deferred tax assets and liabilities	$	1,880		$	(928	)	$	1,608		$	(984	)

Rollforward of Gross Consolidated Liability for Unrecognized Income Tax Benefits

The following is a rollforward of our gross consolidated liability for unrecognized income tax benefits for the three years ended December 31 (table in millions):

	2014			2013			2012
Unrecognized tax benefits, beginning of year	$	266		$	270		$	197
Tax positions related to current year:
Additions	63			37			25
Reductions	—			—			(1		)
Tax positions related to prior years:
Additions	91			10			64
Reductions	(31		)	(33		)	(4		)
Settlements	(1		)	(5		)	—
Lapses in statutes of limitations	(5		)	(13		)	(11		)
Unrecognized tax benefits, end of year	$	383		$	266		$	270