Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of:

	For the Years Ended December 31,
	2019			2018			2017
	(in millions)
Earnings/(losses) from continuing operations before income taxes:
United States	$	751		$	(170	)	$	354
Outside United States	2,696			3,012			2,770
	$	3,447		$	2,842		$	3,124
Provision for income taxes:
United States federal:
Current	$	145		$	(34	)	$	1,322
Deferred	97			171			(1,274		)
	242			137			48
State and local:
Current	29			23			32
Deferred	45			61			30
	74			84			62
Total United States	316			221			110
Outside United States:
Current	459			552			541
Deferred	(773		)	—			15
Total outside United States	(314		)	552			556
Total provision for income taxes	$	2		$	773		$	666

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate as follows:

	For the Years Ended December 31,
	2019		2018		2017
U.S. federal statutory rate	21.0	%	21.0	%	35.0	%
Increase/(decrease) resulting from:
State and local income taxes, net of federal tax benefit	1.3	%	0.4	%	0.8	%
Foreign rate differences	0.2	%	(1.9	)%	(10.8	)%
Changes in judgment on realizability of deferred tax assets	(0.3	)%	(0.4	)%	3.2	%
Reversal of other tax accruals no longer required	(3.0	)%	(1.8	)%	(1.7	)%
Tax accrual on investment in Keurig (including tax impact of the    gain from the KDP transaction)	0.8	%	8.4	%	1.2	%
Excess tax benefits from equity compensation	(1.2	)%	(0.8	)%	(1.2	)%
Tax legislation (non-U.S. and non-Swiss tax reform)	0.4	%	0.3	%	(2.6	)%
Swiss tax reform	(22.3	)%	—		—	%
U.S. tax reform - deferred benefit from tax rate change	—		—		(41.5	)%
U.S. tax reform - transition tax	0.1	%	(1.3	)%	42.2	%
U.S. tax reform - changes in indefinite reinvestment assertion	—		2.1	%	(2.0	)%
Foreign tax provisions under TCJA (GILTI, FDII and BEAT)(1)	2.5	%	1.1	%	—
Other	0.6	%	0.1	%	(1.3	)%
Effective tax rate	0.1	%	27.2	%	21.3	%

(1) The Tax Cuts and Jobs Act of 2017 ("TCJA") established the Global Intangible Low-Tax Income ("GILTI") provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income ("FDII")

provision, which allows a deduction against certain types of US taxable income resulting in a lower effective US tax rate on such income; and the Base Erosion Anti-abuse Tax ("BEAT"), which is a new minimum tax based on cross-border service payments by U.S. entities.

Schedule of Deferred Tax Assets and Liabilities Temporary Differences

Tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of:

	As of December 31,
	2019			2018
	(in millions)
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	150		$	147
Accrued pension costs	272			349
Other employee benefits	160			147
Accrued expenses	287			283
Loss carryforwards	589			707
Tax credit carryforwards	729			747
Other	438			302
Total deferred income tax assets	2,625			2,682
Valuation allowance	(1,243		)	(1,153		)
Net deferred income tax assets	$	1,382		$	1,529
Deferred income tax liabilities:
Intangible assets, including impact from Swiss tax reform	$	(2,772	)	$	(3,861	)
Property, plant and equipment	(663		)	(473		)
Other	(559		)	(492		)
Total deferred income tax liabilities	(3,994		)	(4,826		)
Net deferred income tax liabilities	$	(2,612	)	$	(3,297	)

Schedule of Changes in Unrecognized Tax Benefit

The changes in our unrecognized tax benefits were:

	For the Years Ended December 31,
	2019			2018			2017
	(in millions)
January 1	$	516		$	579		$	610
Increases from positions taken during prior periods	27			36			33
Decreases from positions taken during prior periods	(35		)	(43		)	(93		)
Increases from positions taken during the current period	50			57			64
Decreases relating to settlements with taxing authorities	(64		)	(45		)	(54		)
Reductions resulting from the lapse of the applicable    statute of limitations	(64		)	(31		)	(29		)
Currency/other	(4		)	(37		)	48
December 31	$	426		$	516		$	579