Income Taxes (Tables)

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Reconciliation of US Statutory Federal Tax Rate

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

	Second Quarter						Six Months
	2016			2015			2016			2015
US federal statutory rate		35	%		35	%		35	%		35	%
State tax		-			-			1			-
Non-US income taxed at different rates		(18	)		(13	)		(20	)		(12	)
Charges and credits (See Note 2)		(2	)		-			(2	)		1
Other		-			(1	)		-			(2	)
		15	%		21	%		14	%		22	%

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,
	2016			2015
Postretirement benefits	$	265		$	266
Intangible assets		(3,203	)		(1,418	)
Investments in non-US subsidiaries		(149	)		(152	)
Fixed assets, net		(163	)		(176	)
Inventories		289			159
Other, net		721			454
	$	(2,240	)	$	(867	)