Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017, 2016 and 2015:

(in millions)	2017			2016			2015
Earnings before income taxes	$	10,589		$	9,924		$	9,615
Provision for income taxes:
United States federal and state:
Current	$	1,662		$	(39	)	$	(56	)
Deferred	(384		)	293			117
Total United States	1,278			254			61
Outside United States:
Current	3,146			2,625			2,762
Deferred	(117		)	(111		)	(135		)
Total outside United States	3,029			2,514			2,627
Total provision for income taxes	$	4,307		$	2,768		$	2,688

Schedule of Reconciliation of Unrecognized Tax Benefits

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

(in millions)	2017			2016			2015
Balance at January 1,	$	79		$	88		$	123
Additions based on tax positions related to the current year	71			13			17
Additions for tax positions of previous years	5			1			6
Reductions for tax positions of prior years	—			(7		)	(42		)
Reductions due to lapse of statute of limitations	(7		)	(14		)	(7		)
Settlements	(4		)	(2		)	(1		)
Other	1			—			(8		)
Balance at December 31,	$	145		$	79		$	88

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, 2017			December 31, 2016			December 31, 2015
Unrecognized tax benefits	$	145		$	79		$	88
Accrued interest and penalties	23			15			28
Tax credits and other indirect benefits	(35		)	(31		)	(40		)
Liability for tax contingencies	$	133		$	63		$	76

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, 2017, 2016 and 2015:

	2017		2016		2015
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) resulting from:
Foreign rate differences	(12.2	)	(12.6	)	(12.3	)
Dividend repatriation cost	16.4		5.8		5.7
Other	1.5		(0.3	)	(0.4	)
Effective tax rate	40.7	%	27.9	%	28.0	%

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)	2017			2016
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	239		$	287
Accrued pension costs	334			256
Inventory	131			241
Accrued liabilities	117			137
Foreign exchange	91			—
Other	114			173
Total deferred income tax assets	1,026			1,094
Deferred income tax liabilities:
Trade names	(546		)	(554		)
Property, plant and equipment	(223		)	(217		)
Unremitted earnings	(49		)	(636		)
Foreign exchange	—			(725		)
Total deferred income tax liabilities	(818		)	(2,132		)
Net deferred income tax assets (liabilities)	$	208		$	(1,038	)