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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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	2016				2015				2014
U.S.	$	2,059.4			$	2,597.8			$	2,681.9
Outside the U.S.	4,806.6				3,957.9				4,690.1
Income before provision for income taxes	$	6,866.0			$	6,555.7			$	7,372.0

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	2016				2015				2014
U.S. federal	$	1,046.6			$	1,072.3			$	1,124.8
U.S. state	121.3				139.5				148.4
Outside the U.S.	1,550.2				816.0				1,431.7
Current tax provision	2,718.1				2,027.8				2,704.9
U.S. federal	(122.1		)		6.8				(81.8		)
U.S. state	14.1				(3.9		)		(6.2		)
Outside the U.S.	(430.6		)		(4.3		)		(2.7		)
Deferred tax provision	(538.6		)		(1.4		)		(90.7		)
Provision for income taxes	$	2,179.5			$	2,026.4			$	2,614.2

Net Deferred Tax Liabilities

Net deferred tax liabilities consisted of:

In millions	December 31, 2016						2015
Property and equipment			$	1,459.8			$	1,751.7
Unrealized foreign exchange gains			630.9				455.6
Intangible liabilities			445.2				464.7
Other			287.6				268.5
Total deferred tax liabilities			2,823.5				2,940.5
Property and equipment			(650.2		)		(472.7		)
Employee benefit plans			(395.0		)		(390.1		)
Intangible assets			(170.7		)		(222.6		)
Deferred foreign tax credits			(316.8		)		(289.2		)
Operating loss carryforwards			(292.7		)		(419.8		)
Other			(338.6		)		(297.0		)
Total deferred tax assets before valuation allowance			(2,164.0		)		(2,091.4		)
Valuation allowance			168.0				322.4
Net deferred tax liabilities			$	827.5			$	1,171.5
Balance sheet presentation:
Deferred income taxes			$	1,817.1			$	1,704.3
Other assets-miscellaneous			(804.0		)		(532.8		)
Liabilities of businesses held for sale			(185.6		)		—
Net deferred tax liabilities			$	827.5			$	1,171.5

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:

	2016			2015			2014
Statutory U.S. federal income tax rate	35.0	%		35.0	%		35.0	%
State income taxes, net of related federal income tax benefit	1.5			1.6			1.6
Foreign income taxed at different rates	(6.5	)		(4.9	)		(4.8	)
Taxes related to unfavorable lower tax court ruling and audit progression in foreign tax jurisdictions	1.2			—			4.1
Cash repatriation	—			(2.3	)		(1.2	)
Other, net	0.5			1.5			0.8
Effective income tax rates	31.7	%		30.9	%		35.5	%

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	2016				2015
Balance at January 1	$	781.2			$	988.1
Decreases for positions taken in prior years	(37.1		)		(49.9		)
Increases for positions taken in prior years	150.1				30.5
Increases for positions related to the current year	116.6				83.7
Settlements with taxing authorities	(17.7		)		(258.0		)
Lapsing of statutes of limitations	(69.0		)		(13.2		)
Balance at December 31(1)	$	924.1			$	781.2

(1) Of this amount, $890.0 million and $704.0 million are included in Other long-term liabilities for 2016 and 2015, respectively, and $9.0 million and $21.9 million are included in Current liabilities - income taxes for 2016 and 2015, 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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-SubTopic 10
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-SubTopic 10
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