Income Tax (Tables)

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure Table

Income from continuing operations before taxes which were subject to US and non-US income taxes was as follows:

	(Stated in millions)
	Third Quarter				Nine Months
	2014		2013		2014		2013
United States	$	522	$	494	$	1,671	$	1,425
Outside United States		1,998		1,737		5,252		5,096
	$	2,520	$	2,231	$	6,923	$	6,521

Components of Net Deferred Tax Assets

The components of net deferred tax assets (liabilities) were as follows:

	(Stated in millions)
	Sept. 30,				Dec. 31,
	2014				2013
Postretirement benefits	$	206		$	236
Intangible assets		(1,497	)		(1,502	)
Investments in non-US subsidiaries		(228	)		(282	)
Other, net		73			128
	$	(1,446	)	$	(1,420	)

Components of Consolidated Income Taxes

The components of consolidated Taxes on income were as follows:

	(Stated in millions)
	Third Quarter						Nine Months
	2014			2013			2014			2013
Current:
United States — Federal	$	202		$	116		$	479		$	435
United States — State		19			16			38			51
Outside United States		342			313			1,033			859
	$	563		$	445		$	1,550		$	1,345
Deferred:
United States — Federal	$	(38	)	$	36		$	(27	)	$	12
United States — State		(4	)		2			(2	)		(1	)
Outside United States		35			26			9			28
Valuation allowance		—			(3	)		—			(23	)
	$	(7	)	$	61		$	(20	)	$	16
	$	556		$	506		$	1,530		$	1,361

Reconciliation of US Statutory Federal Tax Rate

A reconciliation of the US statutory federal tax rate of 35% to the consolidated effective income tax rate follows:

	Third Quarter						Nine Months
	2014			2013			2014			2013
US federal statutory rate		35	%		35	%		35	%		35	%
Non-US income taxed at different rates		(12	)		(12	)		(11	)		(12	)
Charges and credits (See Note 2)		—			—			—			(2	)
Other		(1	)		—			(2	)		—
		22	%		23	%		22	%		21	%