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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Expense Benefit | The income tax expense (benefit) for the years ended December 31 consists of the following (in millions):
| 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
U.S. Federal | $ | 1,338 |  |  | $ | 1,634 |  |  | $ | 932 |
U.S. State and Local | 67 |  |  | 88 |  |  | 103 |
Non-U.S. | 177 |  |  | 236 |  |  | 185 |
Total Current | 1,582 |  |  | 1,958 |  |  | 1,220 |
Deferred: |  |  |  |  |
U.S. Federal | 103 |  |  | 469 |  |  | 427 |
U.S. State and Local | 31 |  |  | 65 |  |  | (11 | )
Non-U.S. | (11 | ) |  | 6 |  |  | (31 | )
Total Deferred | 123 |  |  | 540 |  |  | 385 |
Total Income Tax Expense | $ | 1,705 |  |  | $ | 2,498 |  |  | $ | 1,605 |
Income Before Income Taxes | Income before income taxes includes the following components (in millions):
| 2016 |  | 2015 |  | 2014
United States | $ | 4,322 |  |  | $ | 6,348 |  |  | $ | 3,819 |
Non-U.S. | 814 |  |  | 994 |  |  | 818 |
Total Income Before Income Taxes: | $ | 5,136 |  |  | $ | 7,342 |  |  | $ | 4,637 |
Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate | A reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended December 31 consists of the following:
| 2016 |  | 2015 |  | 2014
Statutory U.S. federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
U.S. state and local income taxes (net of federal benefit) | 1.5 |  |  | 1.7 |  |  | 1.2 |
Non-U.S. tax rate differential | (2.4 | ) |  | (1.2 | ) |  | (2.4 | )
Nondeductible/nontaxable items | 0.8 |  |  | 0.2 |  |  | 1.3 |
U.S. federal tax credits | (1.2 | ) |  | (1.3 | ) |  | (1.5 | )
Other | (0.5 | ) |  | (0.4 | ) |  | 1.0 |
Effective income tax rate | 33.2 | % |  | 34.0 | % |  | 34.6 | %
Deferred Tax Liabilities and Assets | Deferred income tax assets and liabilities are comprised of the following at December 31 (in millions):
| 2016 |  | 2015
Fixed assets and capitalized software | $ | (4,782 | ) |  | $ | (4,776 | )
Other | (756 | ) |  | (699 | )
Deferred tax liabilities | (5,538 | ) |  | (5,475 | )
Pension and postretirement benefits | 4,236 |  |  | 3,915 |
Loss and credit carryforwards | 229 |  |  | 261 |
Insurance reserves | 733 |  |  | 730 |
Stock compensation | 297 |  |  | 256 |
Other | 681 |  |  | 650 |
Deferred tax assets | 6,176 |  |  | 5,812 |
Deferred tax assets valuation allowance | (159 | ) |  | (197 | )
Deferred tax asset (net of valuation allowance) | 6,017 |  |  | 5,615 |
Net deferred tax asset | $ | 479 |  |  | $ | 140 |
Amounts recognized in the consolidated balance sheets: |  |  |
Deferred tax assets | $ | 591 |  |  | $ | 255 |
Deferred tax liabilities | (112 | ) |  | (115 | )
Net deferred tax asset | $ | 479 |  |  | $ | 140 |
U.S. State and Local Operating Loss and Credit Carryforwards |
| 2016 |  | 2015
U.S. state and local operating loss carryforwards | $ | 603 |  |  | $ | 894 |
U.S. state and local credit carryforwards | $ | 70 |  |  | $ | 53 |
Summarized Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits (in millions):
| Tax |  | Interest |  | Penalties
Balance at January 1, 2014 | $ | 191 |  |  | $ | 40 |  |  | $ | 4 |
Additions for tax positions of the current year | 15 |  |  | — |  |  | — |
Additions for tax positions of prior years | 51 |  |  | 13 |  |  | — |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (74 | ) |  | (8 | ) |  | — |
Settlements during the period | (10 | ) |  | (2 | ) |  | — |
Lapses of applicable statute of limitations | (1 | ) |  | (1 | ) |  | (1 | )
Balance at December 31, 2014 | 172 |  |  | 42 |  |  | 3 |
Additions for tax positions of the current year | 24 |  |  | — |  |  | — |
Additions for tax positions of prior years | 45 |  |  | 21 |  |  | 3 |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (85 | ) |  | (8 | ) |  | — |
Settlements during the period | (6 | ) |  | (2 | ) |  | — |
Lapses of applicable statute of limitations | (2 | ) |  | — |  |  | — |
Balance at December 31, 2015 | 148 |  |  | 53 |  |  | 6 |
Additions for tax positions of the current year | 17 |  |  | — |  |  | — |
Additions for tax positions of prior years | 20 |  |  | 10 |  |  | — |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (41 | ) |  | (13 | ) |  | — |
Settlements during the period | — |  |  | — |  |  | — |
Lapses of applicable statute of limitations | — |  |  | — |  |  | — |
Balance at December 31, 2016 | $ | 144 |  |  | $ | 50 |  |  | $ | 6 |

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