INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes [Table Text Block]

The provision/(benefit) for income taxes consisted of:

	Year Ended December 31,
Dollars in Millions	2015			2014			2013
Current:
U.S.	$	337		$	334		$	375
Non-U.S.	456			560			427
Total Current	793			894			802
Deferred:
U.S.	(394		)	(403		)	(390		)
Non-U.S.	47			(139		)	(101		)
Total Deferred	(347		)	(542		)	(491		)
Total Provision	$	446		$	352		$	311

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliation of the effective tax/(benefit) rate to the U.S. statutory Federal income tax rate was:

	% of Earnings Before Income Taxes
Dollars in Millions	2015					2014					2013
Earnings/(Loss) before income taxes:
U.S.	$	(1,329	)			$	(349	)			$	(135	)
Non-U.S.	3,406					2,730					3,026
Total	$	2,077				$	2,381				$	2,891
U.S. statutory rate	727			35.0	%	833			35.0	%	1,012			35.0	%
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland	(535		)	(25.8	)%	(509		)	(21.4	)%	(620		)	(21.4	)%
U.S. tax effect of capital losses	—			—		(361		)	(15.2	)%	—			—
Valuation allowance release	(84		)	(4.0	)%	—			—		(10		)	(0.3	)%
U.S. Federal, state and foreign contingent tax matters	56			2.7	%	228			9.6	%	134			4.6	%
U.S. Federal research based credits	(132		)	(6.4	)%	(131		)	(5.4	)%	(220		)	(7.6	)%
Goodwill allocated to divestitures	25			1.2	%	210			8.8	%	—			—
U.S. Branded Prescription Drug Fee	44			2.1	%	84			3.5	%	63			2.2	%
R&D charges	369			17.8	%	52			2.2	%	—			—
State and local taxes (net of valuation allowance)	16			0.8	%	20			0.8	%	25			0.9	%
Foreign and other	(40		)	(1.9	)%	(74		)	(3.1	)%	(73		)	(2.6	)%
	$	446		21.5	%	$	352		14.8	%	$	311		10.8	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of current and non-current deferred income tax assets/(liabilities) were as follows:

	December 31,
Dollars in Millions	2015			2014
Deferred tax assets
Foreign net operating loss carryforwards	$	3,090		$	3,473
U.S. capital loss carryforwards	39			562
State net operating loss and credit carryforwards	324			337
U.S. Federal net operating loss and credit carryforwards	173			161
Deferred income	1,009			1,163
Milestone payments and license fees	560			440
Pension and postretirement benefits	462			467
Intercompany profit and other inventory items	607			531
Other foreign deferred tax assets	172			202
Share-based compensation	122			95
Legal and other settlements	63			14
Repatriation of foreign earnings	(1		)	94
Internal transfer of intellectual property	635			247
Other	337			311
Total deferred tax assets	7,592			8,097
Valuation allowance	(3,534		)	(4,259		)
Deferred tax assets net of valuation allowance	4,058			3,838
Deferred tax liabilities
Depreciation	(105		)	(128		)
Acquired intangible assets	(338		)	(390		)
Goodwill and other	(802		)	(832		)
Total deferred tax liabilities	(1,245		)	(1,350		)
Deferred tax assets, net	$	2,813		$	2,488
Recognized as:
Deferred income taxes – current	$	—		$	1,644
Deferred income taxes – non-current	2,844			915
Income taxes payable – current	—			(11		)
Income taxes payable – non-current	(31		)	(60		)
Total	$	2,813		$	2,488

Summary of Valuation Allowance [Table Text Block]

Changes in the valuation allowance were as follows:

	Year Ended December 31,
Dollars in Millions	2015			2014			2013
Balance at beginning of year	$	4,259		$	4,623		$	4,404
Provision	71			140			252
Utilization	(436		)	(109		)	(68		)
Foreign currency translation	(366		)	(395		)	40
Acquisitions	6			—			(5		)
Balance at end of year	$	3,534		$	4,259		$	4,623

Summary of Income Tax Contingencies [Table Text Block]

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

	Year Ended December 31,
Dollars in Millions	2015			2014			2013
Balance at beginning of year	$	934		$	756		$	642
Gross additions to tax positions related to current year	52			106			74
Gross additions to tax positions related to prior years	56			218			108
Gross additions to tax positions assumed in acquisitions	1			—			—
Gross reductions to tax positions related to prior years	(34		)	(57		)	(87		)
Settlements	(46		)	(65		)	26
Reductions to tax positions related to lapse of statute	(9		)	(12		)	(8		)
Cumulative translation adjustment	(10		)	(12		)	1
Balance at end of year	$	944		$	934		$	756

Summary of Income Tax Examinations [Table Text Block]

Additional information regarding unrecognized tax benefits is as follows:

	Year Ended December 31,
Dollars in Millions	2015		2014			2013
Unrecognized tax benefits that if recognized would impact the effective tax rate	$	671	$	668		$	508
Accrued interest	93		96			83
Accrued penalties	16		17			34
Interest expense	2		27			24
Penalty expense/(benefit)	1		(7		)	3