Income Taxes (Tables)

9 Months Ended

Sep. 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)
	Third Quarter				Nine Months
	2015		2014		2015		2014
United States	$	16	$	522	$	296	$	1,671
Outside United States		1,237		1,998		3,688		5,252
	$	1,253	$	2,520	$	3,984	$	6,923

Components of Net Deferred Tax Assets (Liabilities)

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

(Stated in millions)
	Sept. 30,			Dec. 31,
	2015			2014
Postretirement benefits	$	294		$	327
Intangible assets		(1,458	)		(1,435	)
Investments in non-US subsidiaries		(190	)		(227	)
Other, net		228			183
	$	(1,126	)	$	(1,152	)

Components of Consolidated Income Taxes

The components of consolidated Taxes on income were as follows:

(Stated in millions)
	Third Quarter						Nine Months
	2015			2014			2015			2014
Current:
United States-Federal	$	31		$	202		$	147		$	479
United States-State		8			19			22			38
Outside United States		280			342			830			1,033
		319			563			999			1,550
Deferred:
United States-Federal	$	(67	)	$	(38	)	$	(96	)	$	(27	)
United States-State		(6	)		(4	)		(7	)		(2	)
Outside United States		4			35			(15	)		9
Valuation Allowance		-			-			(22	)		-
		(69	)		(7	)		(140	)		(20	)
	$	250		$	556		$	859		$	1,530

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
	2015			2014			2015			2014
US federal statutory rate		35	%		35	%		35	%		35	%
Non-US income taxed at different rates		(12	)		(12	)		(12	)		(11	)
Charges and credits (See Note 2)		-			-			1			-
Other		(3	)		(1	)		(2	)		(2	)
		20	%		22	%		22	%		22	%