Income Taxes (Tables)

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Before Taxes

Income before taxes subject to US and non-US income taxes was as follows:

(Stated in millions)
	Second Quarter				Six Months
	2015		2014		2015		2014
United States......................................................................................	$	115	$	625	$	280	$	1,150
Outside United States........................................................................		1,321		1,702		2,450		3,254
	$	1,436	$	2,327	$	2,730	$	4,404

Components of Net Deferred Tax Assets (Liabilities)

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

(Stated in millions)
	Jun. 30,			Dec. 31,
	2015			2014
Postretirement benefits.............................................................................................................	$	299		$	327
Intangible assets.......................................................................................................................		(1,470	)		(1,435	)
Investments in non-US subsidiaries.........................................................................................		(188	)		(263	)
Other, net..................................................................................................................................		194			219
	$	(1,165	)	$	(1,152	)

Components of Consolidated Income Taxes

The components of consolidated Taxes on income were as follows:

(Stated in millions)
	Second Quarter					Six Months
	2015			2014		2015			2014
Current:
United States-Federal........................................................................	$	41		$	131	$	116		$	278
United States-State............................................................................		9			12		14			19
Outside United States........................................................................		302			355		550			691
		352			498		680			988
Deferred:
United States-Federal........................................................................	$	(3	)	$	4	$	(29	)	$	11
United States-State............................................................................		(1	)		3		(1	)		2
Outside United States........................................................................		(25	)		1		(21	)		(26	)
Valuation Allowance.........................................................................		(21	)		-		(21	)		-
		(50	)		8		(72	)		(13	)
	$	302		$	506	$	608		$	975

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:

	Second Quarter						Six Months
	2015			2014			2015			2014
US federal statutory rate...................................................................		35	%		35	%		35	%		35	%
Non-US income taxed at different rates...........................................		(13	)		(11	)		(12	)		(11	)
Charges and credits (See Note 2).....................................................		-			-			1			-
Other.................................................................................................		(1	)		(2	)		(2	)		(2	)
		21	%		22	%		22	%		22	%