Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income tax expense

Federal and foreign income tax expense consisted of the following:

	Year Ended December 31
$ in millions	2014		2013		2012
Income Taxes
Currently payable
Federal income taxes	$	701	$	803	$	912
Foreign income taxes	10		28		15
Total federal and foreign income taxes currently payable	711		831		927
Deferred federal and foreign income taxes	157		80		60
Total federal and foreign income taxes	$	868	$	911	$	987

Income tax reconciliation

Income tax expense differs from the amount computed by multiplying the statutory federal income tax rate times earnings before income taxes due to the following:

	Year Ended December 31
$ in millions	2014			2013			2012
Income tax expense at statutory rate	$	1,028		$	1,002		$	1,038
Settlements with taxing authorities	(51		)	—			—
Manufacturing deduction	(48		)	(63		)	(42		)
Research tax credit	(43		)	(37		)	—
Other, net	(18		)	9			(9		)
Total federal and foreign income taxes	$	868		$	911		$	987

Unrecognized tax benefit rollforward

The change in unrecognized tax benefits during 2014, 2013 and 2012, excluding interest, is as follows:

	December 31
$ in millions	2014			2013			2012
Unrecognized tax benefits at beginning of the year	$	241		$	156		$	118
Additions based on tax positions related to the current year	62			56			12
Additions for tax positions of prior years	9			44			28
Settlements with taxing authorities	(61		)	(1		)	(1		)
Other, net	(41		)	(14		)	(1		)
Net change in unrecognized tax benefits	(31		)	85			38
Unrecognized tax benefits at end of the year	$	210		$	241		$	156

Components of deferred tax assets and liabilities

The tax effects of significant temporary differences and carryforwards that gave rise to year-end deferred federal, state and foreign tax balances, as presented in the consolidated statements of financial position, are as follows:

	December 31
$ in millions	2014			2013
Deferred Tax Assets
Retiree benefits	$	2,745		$	1,308
Accrued employee compensation	311			333
Provisions for accrued liabilities	392			313
Stock-based compensation	91			109
Other	104			144
Gross deferred tax assets	3,643			2,207
Less valuation allowance	(53		)	(55		)
Net deferred tax assets	3,590			2,152
Deferred Tax Liabilities
Goodwill	787			806
Property, plant and equipment, net	315			348
Contract accounting differences	332			134
Other	130			50
Gross deferred tax liabilities	1,564			1,338
Total net deferred tax assets	$	2,026		$	814