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PROVISION FOR INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes

Components of earnings from continuing operations before income taxes and the provision (benefit) for U.S. and other income taxes from continuing operations follow:

	For years ended December 31,
(Dollars in millions)	2015				2014				2013
Earnings from continuing operations before income taxes
United States	$	618			$	627			$	1,437
Outside the United States	511				363				242
Total	$	1,129			$	990			$	1,679
Provision (benefit) for income taxes on earnings from continuing operations
United States Federal
Current	$	87			$	64			$	143
Deferred	119				135				300
Outside the United States
Current	59				66				3
Deferred	16				(35		)		15
State and other
Current	22				6				30
Deferred	(28		)		(1		)		16
Total	$	275			$	235			$	507

Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss

The following represents the deferred tax charge (benefit) recorded as a component of accumulated other comprehensive loss in stockholders' equity.

	For years ended December 31,
(Dollars in millions)	2015				2014				2013
Unrecognized losses and prior service credits for benefit plans	$	42			$	(11	)		$	8
Cumulative translation adjustment	—				—				(1		)
Unrealized gains (losses) on cash flow hedges	21				(141		)		5
Total	$	63			$	(152	)		$	12

Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement

Total income tax expense (benefit) included in the consolidated financial statements was composed of the following:

	For years ended December 31,
(Dollars in millions)	2015				2014				2013
Continuing operations	$	275			$	235			$	507
Discontinued operations	—				2				—
Other comprehensive income	63				(152		)		12
Total	$	338			$	85			$	519

Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate

Differences between the provision for income taxes on earnings from continuing operations and income taxes computed using the U.S. Federal statutory income tax rate follow:

	For years ended December 31,
(Dollars in millions)	2015				2014				2013
Amount computed using the statutory rate	$	393			$	345			$	587
State income taxes, net	(3		)		4				30
Foreign rate variance	(93		)		(105		)		(55		)
Domestic manufacturing deduction	(12		)		(6		)		(17		)
Change in reserves for tax contingencies	(7		)		(6		)		(16		)
General business credits	(15		)		(8		)		(6		)
Other	12				11				(16		)
Provision for income taxes	$	275			$	235			$	507
Effective income tax rate	24		%		24		%		30		%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities follow:

	December 31,
(Dollars in millions)	2015				2014
Deferred tax assets
Post-employment obligations	$	471			$	529
Net operating loss carryforwards	349				470
Tax credit carryforwards	276				239
Environmental reserves	122				123
Unrealized derivative loss	162				165
Other	193				294
Total deferred tax assets	1,573				1,820
Less valuation allowance	254				264
Deferred tax assets less valuation allowance	$	1,319			$	1,556
Deferred tax liabilities
Depreciation	$	(1,176	)		$	(1,144	)
Amortization	(902		)		(1,001		)
Other	(142		)		(158		)
Total deferred tax liabilities	$	(2,220	)		$	(2,303	)
Net deferred tax liabilities	$	(901	)		$	(747	)
As recorded in the Consolidated Statements of Financial Position:
Other current assets	$	—			$	177
Other noncurrent assets	27				28
Payables and other current liabilities	—				(6		)
Deferred income tax liabilities	(928		)		(946		)
Net deferred tax liabilities	$	(901	)		$	(747	)

Schedule of Tax Receivables and Payables

Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position:

	December 31,
(Dollars in millions)	2015				2014
Miscellaneous receivables	$	92			$	97
Payables and other current liabilities	$	33			$	23
Other long-term liabilities	32				24
Total income taxes payable	$	65			$	47

Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

(Dollars in millions)	2015				2014				2013
Balance at January 1	$	117			$	51			$	65
Additions based on tax positions related to current year	—				—				—
Additions based on acquisitions	27				72				—
Lapse of statute of limitations	(7		)		(6		)		—
Settlements	—				—				(14		)
Balance at December 31	$	137			$	117			$	51

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- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions, and 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).

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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.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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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.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
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Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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-Name Accounting Standards Codification
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