Income Taxes (Tables)

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Before Taxes Subject to US and Non-US Income Taxes

Income before taxes subject to US and non-US income taxes was as follows:

(Stated in millions)
	First Quarter
	2016			2015
United States	$	(203	)	$	165
Outside United States		825			1,129
	$	622		$	1,294

Components of Net Deferred Tax Assets (Liabilities)

The components of net deferred tax assets (liabilities) were as follows:

(Stated in millions)
	Mar. 31,			Dec. 31,
	2016			2015
Postretirement benefits	$	264		$	266
Intangible assets		(1,414	)		(1,418	)
Investments in non-US subsidiaries		(149	)		(152	)
Fixed assets, net		(173	)		(176	)
Inventories		144			159
Other, net		613			454
	$	(715	)	$	(867	)

Components of Income Taxes

The components of Taxes on income were as follows:

(Stated in millions)
	First Quarter
	2016			2015
Current:
United States-Federal	$	40		$	75
United States-State		1			5
Outside United States		217			248
		258			328
Deferred:
United States-Federal	$	(116	)	$	(26	)
United States-State		(7	)		-
Outside United States		(35	)		4
Valuation Allowance		(1	)		-
		(159	)		(22	)
	$	99		$	306

Reconciliation of US Statutory Federal Tax Rate

A reconciliation of the US statutory federal tax rate (35%) to the consolidated effective income tax rate follows:

	First Quarter
	2016			2015
US federal statutory rate		35	%		35	%
State tax		(1	)		-
Non-US income taxed at different rates		(16	)		(12	)
Charges and credits (See Note 2)		-			3
Other		(2	)		(2	)
		16	%		24	%