Income Taxes Income Taxes (Tables)



	Income (loss) before income taxes
	2015			2014			2013
Ireland	$	(608	)	$	(332	)	$	184
Foreign	2,753			2,093			1,700
Total income before income taxes	$	2,145		$	1,761		$	1,884



	Income tax expense (benefit)
	2015			2014			2013
Current
Ireland	$	8		$	(13	)	$	17
United States
Federal	88			87			89
State and local	22			41			7
Foreign - other	240			239			244
Total current income tax expense	358			354			357

Deferred
Ireland	1			2			—
United States
Federal	(65		)	(224		)	(295		)
State and local	(6		)	(49		)	(23		)
Foreign - other	(124		)	(125		)	(28		)
Total deferred income tax benefit	(194		)	(396		)	(346		)
Total income tax expense (benefit)	$	164		$	(42	)	$	11

Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate follow:



	2015		2014		2013
Income taxes at the applicable statutory rate	25.0	%	25.0	%	25.0	%

Ireland operations
Ireland tax on trading income	(0.4	)%	(0.1	)%	(1.4	)%
Nondeductible interest expense	7.9	%	4.8	%	—	%

United States operations
United States (loss) income	(0.4	)%	(2.8	)%	(2.8	)%
Nondeductible goodwill - Aerospace divestitures	—	%	1.4	%	—	%
Credit for research activities	(0.8	)%	(1.0	)%	(2.0	)%
Other - net	5.4	%	1.5	%	1.3	%

Other foreign operations
United States foreign tax credit	(0.8	)%	(1.1	)%	(1.8	)%
Other foreign operations (earnings taxed at other than the applicable statutory tax rate)	(25.1	)%	(24.8	)%	(17.6	)%
Other foreign operations - other items	(0.5	)%	(1.0	)%	0.2	%

Worldwide operations
Adjustments to tax liabilities	(1.4	)%	(1.7	)%	(1.1	)%
Adjustments to valuation allowances	(1.2	)%	(2.6	)%	0.8	%
Effective income tax expense (benefit) rate	7.7	%	(2.4	)%	0.6	%

Worldwide income tax payments follow:

Components of current and noncurrent deferred income taxes follow:



	2015			2014
	Noncurrent assets and liabilities			Current assets and liabilities			Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits	$	808		$	148		$	773
Depreciation and amortization	(1,824		)	—			(2,010		)
Other accruals and adjustments	717			476			282
United States federal income tax loss carryforwards	20			—			58
United States federal income tax credit carryforwards	183			—			150
United States state and local tax loss carryforwards and tax credit carryforwards	63			—			76
Other foreign tax loss carryforwards	2,265			—			2,112
Other foreign income tax credit carryforwards	70			—			49
Valuation allowance for income tax loss and income tax credit carryforwards	(2,315		)	(24		)	(2,134		)
Other valuation allowances	(15		)	(7		)	(29		)
Total deferred income taxes	$	(28	)	$	593		$	(673	)

These carryforwards and their respective expiration dates are summarized below:



	2016 through 2020		2021 through 2025		2026 through 2030		2031 through 2035		2036 through 2040		Not subject to expiration		Valuation allowance
United States federal income tax loss carryforwards	$	—	$	—	$	35	$	415	$	—	$	—	$	—
United States federal deferred income tax assets for income tax loss carryforwards	—		—		12		107		—		—		(12		)
United States federal deferred income tax assets for income tax loss carryforwards after ASU 2013-11	—		—		12		8		—		—		(12		)
United States federal income tax credit carryforwards	28		69		27		108		21		30		(66		)
United States federal income tax credit carryforwards after ASU 2013-11	28		69		25		40		21		—		(66		)

The deferred tax assets for these carryforwards and their respective expiration dates are summarized below:



	2016 through 2020		2021 through 2025		2026 through 2030		2031 through 2035		2036 through 2040		Not subject to expiration		Valuation allowance
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax effect	$	7	$	17	$	12	$	9	$	—	$	—	$	(18	)
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax effect after ASU 2013-11	—		12		12		9		—		—		(18		)
United States state and local income tax credit carryforwards - net of federal tax effect	10		10		6		3		5		—		(16		)
United States state and local income tax credit carryforwards - net of federal tax effect after ASU 2013-11	8		9		6		2		5		—		(16		)

These carryforwards and their respective expiration dates are summarized below:



	2016 through 2020		2021 through 2025		2026 through 2030		2031 through 2035		Not subject to expiration		Valuation allowance
Non-United States income tax loss carryforwards	$	125	$	146	$	3	$	—	$	10,092	$	—
Non-United States deferred income tax assets for income tax loss carryforwards	33		35		1		—		2,196		(2,171		)
Non-United States income tax credit carryforwards	7		15		16		—		32		(32		)

A summary of gross unrecognized income tax benefits follows:



	2015			2014			2013
Balance at January 1	$	493		$	479		$	444
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	—			(3		)	13
Other increases, including currency translation	34			37			7
Other decreases, including currency translation	(34		)	(3		)	(7		)
Balances related to acquired businesses	(1		)	(3		)	2
Increases as a result of positions taken during the current year	109			65			35
Decreases relating to settlements with tax authorities	—			(51		)	(6		)
Decreases as a result of a lapse of the applicable statute of limitations	(17		)	(28		)	(9		)
Balance at December 31	$	584		$	493		$	479