XML 59 R42.htm IDEA: XBRL DOCUMENT
v3.8.0.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Before Income Tax Expense by Category | Income from Continuing Operations Before Income Tax Expense by Category
years ended December 31 (in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
United States |  | $ | (291 | ) |  | $ | 3,906 |  |  | $ | (738 | )
International |  |  | 1,508 |  |  |  | 1,048 |  |  |  | 1,166 |
Income from continuing operations before income taxes |  | $ | 1,217 |  |  | $ | 4,954 |  |  | $ | 428 |
Income Tax Expense | Income Tax Expense Related to Continuing Operations
years ended December 31 (in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Current |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 8 |  |  | $ | 10 |  |  | $ | (251 | )
State and local |  |  | 18 |  |  |  | (3 | ) |  |  | (6 | )
International |  |  | 273 |  |  |  | 282 |  |  |  | 345 |
Current income tax expense |  |  | 299 |  |  |  | 289 |  |  |  | 88 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 233 |  |  |  | (286 | ) |  |  | (9 | )
State and local |  |  | (7 | ) |  |  | 3 |  |  |  | (20 | )
International |  |  | (32 | ) |  |  | (18 | ) |  |  | (24 | )
Deferred income tax expense |  |  | 194 |  |  |  | (301 | ) |  |  | (53 | )
Income tax expense (benefit) |  | $ | 493 |  |  | $ | (12 | ) |  | $ | 35 |
Deferred Tax Assets and Liabilities | Deferred Tax Assets and Liabilities
as of December 31 (in millions) |  | 2017 |  |  | 2016 |
Deferred tax assets |  |  |  |  |  |  |  |
Accrued expenses |  | $ | 269 |  |  | $ | 377 |
Retirement benefits |  |  | 248 |  |  |  | 411 |
Tax credits and net operating losses |  |  | 834 |  |  |  | 747 |
Valuation allowances |  |  | (483 | ) |  |  | (150 | )
Total deferred tax assets |  |  | 868 |  |  |  | 1,385 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Subsidiaries’ unremitted earnings |  |  | 35 |  |  |  | 145 |
Asset basis differences |  |  | 705 |  |  |  | 704 |
Total deferred tax liabilities |  |  | 740 |  |  |  | 849 |
Net deferred tax asset |  | $ | 128 |  |  | $ | 536 |
Income Tax Expense Reconciliation | Income Tax Expense Related to Continuing Operations Reconciliation
years ended December 31 (in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Income tax expense at U.S. statutory rate |  | $ | 424 |  |  | $ | 1,734 |  |  | $ | 150 |
Retained shares tax free exchange gains |  |  | — |  |  |  | (1,587 | ) |  |  | — |
Tax incentives |  |  | (140 | ) |  |  | (126 | ) |  |  | (133 | )
State and local taxes |  |  | (6 | ) |  |  | 1 |  |  |  | (13 | )
Foreign tax expense (benefit) |  |  | (80 | ) |  |  | 5 |  |  |  | 11 |
Valuation allowances |  |  | 4 |  |  |  | 3 |  |  |  | 5 |
Contingent tax matters |  |  | (1 | ) |  |  | (48 | ) |  |  | 9 |
Branded Prescription Drug Fee |  |  | — |  |  |  | 1 |  |  |  | 1 |
Deferred tax charge on intangible intra-group transfers |  |  | 14 |  |  |  | 13 |  |  |  | 14 |
R&D tax credit |  |  | (4 | ) |  |  | (2 | ) |  |  | (4 | )
Puerto Rico excise tax credit |  |  | (2 | ) |  |  | (5 | ) |  |  | (9 | )
Deferred Tax Revaluation due to 2017 Tax Act |  |  | (283 | ) |  |  | — |  |  |  | — |
Transition Tax due to 2017 Tax Act |  |  | 529 |  |  |  | — |  |  |  | — |
U.S. Valuation Allowance due to 2017 Tax Act |  |  | 339 |  |  |  | — |  |  |  | — |
Stock options windfall tax benefits |  |  | (56 | ) |  |  | — |  |  |  | — |
Foreign tax credits generated |  |  | (246 | ) |  |  | — |  |  |  | — |
Other factors |  |  | 1 |  |  |  | (1 | ) |  |  | 4 |
Income tax expense (benefit) |  | $ | 493 |  |  | $ | (12 | ) |  | $ | 35 |
Reconciliation of Unrecognized Tax Benefits | The following table is a reconciliation of the company’s unrecognized tax benefits, including those related to discontinued operations for the years ended December 31, 2017, 2016 and 2015.
as of and for the years ended (in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Balance at beginning of the year |  | $ | 82 |  |  | $ | 191 |  |  | $ | 206 |
Increase associated with tax positions taken during the current year |  |  | 33 |  |  |  | 7 |  |  |  | 24 |
Increase (decrease) associated with tax positions taken during a prior year |  |  | 2 |  |  |  | (31 | ) |  |  | (26 | )
Settlements |  |  | (6 | ) |  |  | (75 | ) |  |  | (3 | )
Decrease associated with lapses in statutes of limitations |  |  | (3 | ) |  |  | (10 | ) |  |  | (10 | )
Balance at end of the year |  | $ | 108 |  |  | $ | 82 |  |  | $ | 191 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=96868398&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration