Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Taxes

Schedule of income tax expense

($ in millions)	2015			2014		2013
Current taxes		1,005			1,130		1,258
Deferred taxes		(217	)		72		(136	)
Tax expense from continuing operations		788			1,202		1,122
Tax expense (benefit) from discontinued operations		(2	)		1		(8	)

Effective tax rate for the year

($ in millions, except % data)	2015			2014			2013
Income from continuing operations before taxes		2,840			3,896			4,066
Weighted-average global tax rate		21.8	%		23.8	%		22.7	%
Income taxes at weighted-average tax rate		619			929			922
Items taxed at rates other than the weighted-average tax rate		(36	)		146			110
Impact of non-deductible goodwill allocated to divested businesses		9			77			—
Changes in valuation allowance, net		57			52			31
Effects of changes in tax laws and enacted tax rates		—			(52	)		1
Other, net		139			50			58
Tax expense from continuing operations		788			1,202			1,122
Effective tax rate for the year		27.7	%		30.9	%		27.6	%

Components of deferred income tax assets and liabilities

	December 31,
($ in millions)	2015			2014
Deferred tax assets:
Unused tax losses and credits		623			644
Provisions and other accrued liabilities		887			825
Pension		528			671
Inventories		267			297
Property, plant and equipment and other non-current assets		282			265
Other		89			112
Total gross deferred tax asset		2,676			2,814
Valuation allowance		(606	)		(600	)
Total gross deferred tax asset, net of valuation allowance		2,070			2,214
Deferred tax liabilities:
Property, plant and equipment		(279	)		(343	)
Intangibles and other non-current assets		(721	)		(766	)
Pension and other accrued liabilities		(143	)		(191	)
Inventories		(91	)		(118	)
Other current assets		(139	)		(149	)
Unremitted earnings		(523	)		(612	)
Other		(84	)		(76	)
Total gross deferred tax liability		(1,980	)		(2,255	)
Net deferred tax asset (liability)		90			(41	)
Included in:
"Deferred taxes"—current assets		881			902
"Deferred taxes"—non-current assets		423			511
"Deferred taxes"—current liabilities		(249	)		(289	)
"Deferred taxes"—non-current liabilities		(965	)		(1,165	)
Net deferred tax asset (liability)		90			(41	)

Unrecognized tax benefits

($ in millions)	Unrecognized tax benefits			Penalties and interest related to unrecognized tax benefits			Total
Classification as unrecognized tax items on January 1, 2013		669			127			796
Net change due to acquisitions and divestments		17			2			19
Increase relating to prior year tax positions		43			36			79
Decrease relating to prior year tax positions		(30	)		—			(30	)
Increase relating to current year tax positions		90			4			94
Decrease relating to current year tax positions		(1	)		—			(1	)
Decrease due to settlements with tax authorities		(18	)		(5	)		(23	)
Decrease as a result of the applicable statute of limitations		(46	)		(13	)		(59	)
Exchange rate differences		9			3			12
Balance at December 31, 2013, which would, if recognized, affect the effective tax rate		733			154			887
Net change due to acquisitions and divestments		(3	)		1			(2	)
Increase relating to prior year tax positions		25			39			64
Decrease relating to prior year tax positions		(24	)		(7	)		(31	)
Increase relating to current year tax positions		85			—			85
Decrease relating to current year tax positions		(1	)		—			(1	)
Decrease due to settlements with tax authorities		(19	)		(10	)		(29	)
Decrease as a result of the applicable statute of limitations		(36	)		(19	)		(55	)
Exchange rate differences		(55	)		(12	)		(67	)
Balance at December 31, 2014, which would, if recognized, affect the effective tax rate		705			146			851
Increase relating to prior year tax positions		52			38			90
Decrease relating to prior year tax positions		(33	)		(3	)		(36	)
Increase relating to current year tax positions		155			—			155
Decrease due to settlements with tax authorities		(38	)		(13	)		(51	)
Decrease as a result of the applicable statute of limitations		(62	)		(15	)		(77	)
Exchange rate differences		(35	)		(8	)		(43	)
Balance at December 31, 2015, which would, if recognized, affect the effective tax rate		744			145			889

Open tax years subject to examination

        At December 31, 2015, the earliest significant open tax years that remained subject to examination were the following:

Region	Year
Europe		2007
The Americas		2012
Asia, Middle East & Africa		2006