Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Income Taxes and Provision For Income Taxes

Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2016, 2015 and 2014:

(in millions)	2016			2015			2014
Earnings before income taxes	$	9,924		$	9,615		$	10,650
Provision for income taxes:
United States federal and state:
Current	$	(39	)	$	(56	)	$	(56	)
Deferred	293			117			162
Total United States	254			61			106
Outside United States:
Current	2,625			2,762			3,215
Deferred	(111		)	(135		)	(224		)
Total outside United States	2,514			2,627			2,991
Total provision for income taxes	$	2,768		$	2,688		$	3,097

Schedule of Reconciliation of Unrecognized Tax Benefits

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

(in millions)	2016			2015			2014
Balance at January 1,	$	88		$	123		$	114
Additions based on tax positions related to the current year	13			17			20
Additions for tax positions of previous years	1			6			11
Reductions for tax positions of prior years	(7		)	(42		)	(3		)
Reductions due to lapse of statute of limitations	(14		)	(7		)	(8		)
Settlements	(2		)	(1		)	(3		)
Other	—			(8		)	(8		)
Balance at December 31,	$	79		$	88		$	123

Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties

Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows:

(in millions)	December 31, 2016			December 31, 2015			December 31, 2014
Unrecognized tax benefits	$	79		$	88		$	123
Accrued interest and penalties	15			28			40
Tax credits and other indirect benefits	(31		)	(40		)	(54		)
Liability for tax contingencies	$	63		$	76		$	109

Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate and U.S. Federal Statutory Rate

The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2016, 2015 and 2014:

	2016		2015		2014
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) resulting from:
Foreign rate differences	(12.6	)	(12.3	)	(11.2	)
Dividend repatriation cost	5.8		5.7		5.0
Other	(0.3	)	(0.4	)	0.3
Effective tax rate	27.9	%	28.0	%	29.1	%

Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities

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

	At December 31,
(in millions)	2016			2015
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	287		$	275
Accrued pension costs	256			230
Inventory	241			174
Accrued liabilities	137			153
Other	173			164
Total deferred income tax assets	1,094			996
Deferred income tax liabilities:
Trade names	(554		)	(593		)
Property, plant and equipment	(217		)	(218		)
Unremitted earnings	(636		)	(554		)
Foreign exchange	(725		)	(532		)
Total deferred income tax liabilities	(2,132		)	(1,897		)
Net deferred income tax liabilities	$	(1,038	)	$	(901	)