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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income before Provision for Income Taxes, Classified by Source of Income

Income before provision for income taxes, classified by source of income, was as follows:

In millions	2015				2014				2013
U.S.	$	2,597.8			$	2,681.9			$	2,912.7
Outside the U.S.	3,957.9				4,690.1				5,291.8
Income before provision for income taxes	$	6,555.7			$	7,372.0			$	8,204.5

Provision for Income Taxes, Classified by Timing and Location of Payment

The provision for income taxes, classified by the timing and location of payment, was as follows:

In millions	2015				2014				2013
U.S. federal	$	1,072.3			$	1,124.8			$	1,238.2
U.S. state	139.5				148.4				175.0
Outside the U.S.	816.0				1,431.7				1,180.2
Current tax provision	2,027.8				2,704.9				2,593.4
U.S. federal	6.8				(81.8		)		46.2
U.S. state	(3.9		)		(6.2		)		(6.7		)
Outside the U.S.	(4.3		)		(2.7		)		(14.3		)
Deferred tax provision	(1.4		)		(90.7		)		25.2
Provision for income taxes	$	2,026.4			$	2,614.2			$	2,618.6

Net Deferred Tax Liabilities

Net deferred tax liabilities consisted of:

In millions	December 31, 2015						2014
Property and equipment			$	1,751.7			$	1,754.6
Intangibles and other			1,188.8				907.0
Total deferred tax liabilities			2,940.5				2,661.6
Property and equipment			(472.7		)		(394.4		)
Employee benefit plans			(390.1		)		(400.3		)
Intangible assets			(222.6		)		(252.2		)
Deferred foreign tax credits			(289.2		)		(272.9		)
Operating loss carryforwards			(419.8		)		(286.5		)
Other			(297.0		)		(331.2		)
Total deferred tax assets before valuation allowance			(2,091.4		)		(1,937.5		)
Valuation allowance			322.4				287.9
Net deferred tax liabilities			$	1,171.5			$	1,012.0
Balance sheet presentation:
Deferred income taxes			$	1,704.3			$	1,624.5
Other assets-miscellaneous			(532.8		)		(591.2		)
Current assets-prepaid expenses and other current assets			0.0				(21.3		)
Net deferred tax liabilities			$	1,171.5			$	1,012.0

Statutory U.S. Federal Income Tax Rate Reconciliation to Effective Income Tax Rates

The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows:

	2015			2014			2013
Statutory U.S. federal income tax rate	35.0	%		35.0	%		35.0	%
State income taxes, net of related federal income tax benefit	1.6			1.6			1.3
Foreign income taxed at different rates	(4.9	)		(4.8	)		(5.1	)
Taxes related to unfavorable lower tax court ruling and audit progression in foreign tax jurisdictions	0.0			4.1			0.0
Cash repatriation	(2.3	)		(1.2	)		(0.5	)
Other, net	1.5			0.8			1.2
Effective income tax rates	30.9	%		35.5	%		31.9	%

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:

In millions	2015				2014
Balance at January 1	$	988.1			$	512.7
Decreases for positions taken in prior years	(49.9		)		(19.5		)
Increases for positions taken in prior years	30.5				504.7
Increases for positions related to the current year	83.7				80.7
Settlements with taxing authorities	(258.0		)		(78.0		)
Lapsing of statutes of limitations	(13.2		)		(12.5		)
Balance at December 31(1)	$	781.2			$	988.1

(1) Of this amount, $704.0 million and $909.0 million are included in Other long-term liabilities for 2015 and 2014, respectively, and $21.9 million and $19.5 million are included in Current liabilities - income taxes for 2015 and 2014, respectively, on the Consolidated balance sheet. The remainder is included in Deferred income taxes on the Consolidated balance sheet.

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Unrecognized Tax Benefits Reconciliation, Table

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-Publisher FASB
-Name Accounting Standards Codification
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