Illinois Tool Works (ITW) 10-Q 30 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2015shares
Document and Entity Information [Abstract]
Entity Registrant Name	ILLINOIS TOOL WORKS INC
Entity Central Index Key	49,826
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	363,491,774

Statement of Income (Unaudited)

Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Operating Revenue	$ 3,354	$ 3,692	$ 10,130	$ 10,980
Cost of revenue	1,953	2,182	5,947	6,559
Selling, administrative, and research and development expenses	581	675	1,819	2,034
Amortization of intangible assets	57	60	174	182
Impairment of goodwill and other intangible assets	2	3	2	3
Operating Income	761	772	2,188	2,202
Interest expense	(59)	(68)	(168)	(196)
Other income (expense)	23	20	65	36
Income from Continuing Operations Before Income Taxes	725	724	2,085	2,042
Income Taxes	214	217	636	613
Income from Continuing Operations	511	507	1,449	1,429
Income from Discontinued Operations	0	24	0	1,067
Net Income	$ 511	$ 531	$ 1,449	$ 2,496
Income Per Share from Continuing Operations:
Basic (in dollars per share)	$ 1.40	$ 1.29	$ 3.92	$ 3.51
Diluted (in dollars per share)	1.39	1.28	3.90	3.49
Income Per Share from Discontinued Operations:
Basic (in dollars per share)	0	0.06	0	2.62
Diluted (in dollars per share)	0	0.06	0	2.60
Net Income Per Share:
Basic (in dollars per share)	1.40	1.35	3.92	6.14
Diluted (in dollars per share)	1.39	1.34	3.90	6.09
Cash Dividends Per Share:
Paid (in dollars per share)	0.485	0.42	1.455	1.26
Declared (in dollars per share)	$ 0.55	$ 0.485	$ 1.52	$ 1.33
Shares of Common Stock Outstanding During the Period:
Average (in shares)	365.1	394	369.3	406.8
Average assuming dilution (in shares)	367.1	396.8	371.6	409.7

Statement of Comprehensive Inco

Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net Income	$ 511	$ 531	$ 1,449	$ 2,496
Other Comprehensive Income (Loss):
Foreign currency translation adjustments, net of tax	(335)	(515)	(743)	(537)
Pension and other postretirement benefit adjustments, net of tax	11	8	31	5
Comprehensive Income	$ 187	$ 24	$ 737	$ 1,964

Statement of Financial Position

Statement of Financial Position (Unaudited) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and equivalents	$ 3,001	$ 3,990
Trade receivables	2,339	2,293
Inventories	1,153	1,180
Deferred income taxes	189	212
Prepaid expenses and other current assets	287	401
Total current assets	6,969	8,076
Net plant and equipment	1,601	1,686
Goodwill	4,470	4,667
Intangible assets	1,618	1,799
Deferred income taxes	286	301
Other assets	1,160	1,149
Total assets	16,104	17,678
Current Liabilities:
Short-term debt	812	1,476
Accounts payable	498	512
Accrued expenses	1,137	1,287
Cash dividends payable	200	186
Income taxes payable	71	64
Deferred income taxes	6	8
Total current liabilities	2,724	3,533
Noncurrent Liabilities:
Long-term debt	7,000	5,981
Deferred income taxes	342	338
Other liabilities	948	1,002
Total noncurrent liabilities	8,290	7,321
Stockholders’ Equity:
Common stock	6	6
Additional paid-in-capital	1,124	1,096
Income reinvested in the business	18,066	17,173
Common stock held in treasury	(12,740)	(10,798)
Accumulated other comprehensive income (loss)	(1,370)	(658)
Noncontrolling interest	4	5
Total stockholders’ equity	5,090	6,824
Total Liabilities and Stockholders' Equity	$ 16,104	$ 17,678

Statement of Cash Flows (Unaudi

Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Provided by (Used for) Operating Activities:
Net Income	$ 1,449	$ 2,496
Adjustments to reconcile net income to cash provided by (used for) operating activities:
Depreciation	180	202
Amortization and impairment of goodwill and other intangible assets	176	185
Change in deferred income taxes	(35)	9
Provision for uncollectible accounts	6	7
(Income) loss from investments	(1)	(7)
(Gain) loss on sale of plant and equipment	1	2
(Gain) loss on discontinued operations	0	(1,719)
(Gain) loss on sale of operations and affiliates	(16)	7
Stock-based compensation expense	33	30
Other non-cash items, net	4	8
(Increase) decrease in-
Trade receivables	(157)	(239)
Inventories	(32)	(62)
Prepaid expenses and other assets	25	(43)
Increase (decrease) in-
Accounts payable	13	24
Accrued expenses and other liabilities	(88)	66
Income taxes	38	267
Other, net	0	(75)
Net cash provided by (used for) operating activities	1,596	1,158
Cash Provided by (Used for) Investing Activities:
Acquisition of businesses (excluding cash and equivalents) and additional interest in affiliates	(6)	(43)
Additions to plant and equipment	(209)	(272)
Proceeds from investments	17	23
Proceeds from sale of plant and equipment	19	21
Net proceeds from sales of discontinued operations	0	3,191
Proceeds from sales of operations and affiliates	29	13
Other, net	(3)	15
Net cash provided by (used for) investing activities	(153)	2,948
Cash Provided by (Used for) Financing Activities:
Cash dividends paid	(542)	(521)
Issuance of common stock	48	93
Repurchases of common stock	(2,002)	(3,516)
Net proceeds from (repayments of) debt with original maturities of three months or less	(662)	(1,172)
Proceeds from debt with original maturities of more than three months	1,098	3,329
Repayments of debt with original maturities of more than three months	(1)	(801)
Excess tax benefits from stock-based compensation	18	22
Other, net	(11)	(13)
Net cash provided by (used for) financing activities	(2,054)	(2,579)
Effect of Exchange Rate Changes on Cash and Equivalents	(378)	(325)
Cash and Equivalents:
Increase (decrease) during the period	(989)	1,202
Beginning of period	3,990	3,618
End of period	3,001	4,820
Supplementary Cash and Non-Cash Information:
Cash Paid During the Period for Interest	178	166
Cash Paid During the Period for Income Taxes, Net of Refunds	$ 585	$ 1,093

Financial Statements

Financial Statements	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statements	Financial Statements The unaudited financial statements included herein have been prepared by Illinois Tool Works Inc. and Subsidiaries (the “Company”). In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for interim periods. It is suggested that these financial statements be read in conjunction with the financial statements and notes to financial statements included in the Company’s 2014 Annual Report on Form 10-K. Certain reclassifications of prior year data have been made to conform with current year reporting.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations The Company periodically reviews its operations for businesses that may no longer be aligned with its enterprise initiatives and long-term objectives. As a result, the Company may commit to a plan to exit or dispose of certain businesses and present them as discontinued operations. The following summarizes the Company’s discontinued operations. Third Quarter 2013 Discontinued Operations - In the third quarter of 2013, the Company committed to a plan to sell the Industrial Packaging business and began classifying this business as held for sale. The Industrial Packaging business was sold in the second quarter of 2014. In the third quarter of 2013, the Company also committed to a plan for the divestiture of a construction business previously included in the Construction Products segment. This business was classified as held for sale beginning in the third quarter of 2013 and was sold in the second quarter of 2014. First Quarter 2013 Discontinued Operations - In the first quarter of 2013, the Company committed to a plan for the divestiture of a construction distribution business previously included in the Construction Products segment. This business was classified as held for sale beginning in the first quarter of 2013 and was sold in the second quarter of 2014. As of the second quarter of 2014, the Company had completed the divestiture of all of the businesses previously reported as discontinued operations. Results of the discontinued operations for the three and nine months ended September 30, 2014 were as follows: In millions Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Operating revenue $ — $ 798 Income before income taxes $ 10 $ 1,806 Income tax expense 14 (739 ) Income from discontinued operations $ 24 $ 1,067 $1.8 billion for the nine months ended September 30, 2014 . The income in the first nine months of 2014 included the pre-tax gain of $1.7 billion ( $1.1 billion after tax) on the sale of the Industrial Packaging business recorded in the second quarter of 2014. Income tax expense in the first nine months of 2014 included $175 million of U.S. income tax expense related to the repatriation of approximately $1.3 billion of international proceeds from the sale of the Industrial Packaging business. In April 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance to change the criteria for reporting discontinued operations. Under the new guidance, only disposals representing a strategic shift in a company's operations and financial results should be reported as discontinued operations, with expanded disclosures. In addition, disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify as a discontinued operation is required. The Company adopted this new guidance effective January 1, 2015. The new guidance applies prospectively to new disposals and new classifications of disposal groups held for sale after such date. As a result, this guidance did not have any impact on the Company's financial statements or related disclosures upon adoption.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company files tax returns in the U.S. and various state, local and foreign jurisdictions. These tax returns are routinely audited by the tax authorities in these jurisdictions including the Internal Revenue Service ("IRS"), Her Majesty's Revenue and Customs, German Fiscal Authority, French Fiscal Authority, and Australian Tax Office, and a number of these audits are currently ongoing, which may increase the amount of the unrecognized tax benefits in future periods. The Company believes it is reasonably possible that within the next twelve months the amount of the Company's unrecognized tax benefits may be decreased by approximately $68 million related predominantly to various intercompany transactions. The Company has recorded its best estimate of the potential exposure for these issues. On February 18, 2014, the Company received a Notice of Deficiency (“NOD”) from the IRS asserting that a non-taxable return of capital received from a subsidiary was a taxable dividend distribution. The NOD assesses additional taxes of $70 million for the 2006 tax year, plus interest and penalties. In May 2014, the Company petitioned the United States Tax Court to challenge the NOD. The Company's petition was subsequently denied and the case will proceed to court. Although the outcome of this process cannot be predicted with certainty, the Company believes it will be successful in defending its positions. Accordingly, no reserve has been recorded related to this matter.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories as of September 30, 2015 and December 31, 2014 were as follows: In millions September 30, 2015 December 31, 2014 Raw material $ 446 $ 458 Work-in-process 145 133 Finished goods 650 677 LIFO reserve (88 ) (88 ) Total inventories $ 1,153 $ 1,180

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill represents the excess cost over fair value of the net assets of purchased businesses. The Company does not amortize goodwill and intangible assets that have indefinite lives. The Company performs an impairment assessment of goodwill and intangible assets with indefinite lives annually, or more frequently if triggering events occur, based on the estimated fair value of the related reporting unit or intangible asset. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When performing its annual impairment assessment, the Company evaluates the goodwill assigned to each of its reporting units for potential impairment by comparing the estimated fair value of the relevant reporting unit to the carrying value. The Company uses various Level 2 and Level 3 valuation techniques to determine the fair value of its reporting units, including discounting estimated future cash flows based on a detailed cash flow forecast prepared by the relevant reporting unit and market multiples of relevant public companies. If the fair value of a reporting unit is less than its carrying value, an impairment loss, if any, is recorded for the difference between the implied fair value and the carrying value of the reporting unit's goodwill. The Company's indefinite-lived intangible assets consist of trademarks and brands. The estimated fair values of these intangible assets are determined based on a Level 3 valuation method using a relief-of-royalty income approach derived from internally forecasted revenues of the related products. If the fair value of the trademark or brand is less than its carrying value, an impairment loss is recorded for the difference between the estimated fair value and carrying value of the intangible asset. The Company performed its annual impairment assessment of goodwill and indefinite-lived intangible assets in the third quarter of 2015 and 2014 , which resulted in no goodwill impairment charges and indefinite-lived intangible asset impairment charges of $ 2 million and $ 3 million , respectively. The charge in the third quarter of 2015 related to a brand in the Polymers & Fluids segment. The charges in the third quarter of 2014 related to certain brands in the Polymers & Fluids and Test & Measurement and Electronics segments. A summary of indefinite-lived intangible assets that were adjusted to fair value and the related impairment charges included in the statement of income in the third quarter of 2015 and 2014 was as follows: In millions Book Value Fair Value Total Impairment Charges 2015 $ 26 $ 24 $ 2 2014 11 8 3

Pension and Other Postretiremen

Pension and Other Postretirement Benefits	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and Other Postretirement Benefits	Pension and Other Postretirement Benefits Pension and other postretirement benefit costs related to both continuing and discontinued operations for the three and nine months ended September 30, 2015 and 2014 , were as follows: Three Months Ended Nine Months Ended September 30, September 30, In millions Pension Other Postretirement Benefits Pension Other Postretirement Benefits 2015 2014 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost: Service cost $ 18 $ 20 $ 3 $ 3 $ 54 $ 60 $ 8 $ 8 Interest cost 23 26 6 5 69 78 18 17 Expected return on plan assets (38 ) (40 ) (7 ) (7 ) (114 ) (119 ) (19 ) (19 ) Amortization of actuarial (gain) loss 15 12 — — 45 36 — (3 ) Amortization of prior service cost — — — 1 — — — 1 Settlement/curtailment (gain) loss — — — — — 2 — (9 ) Net periodic benefit (income) cost $ 18 $ 18 $ 2 $ 2 $ 54 $ 57 $ 7 $ (5 ) Amounts were included in the statement of income as follows: Continuing operations $ 18 $ 18 $ 2 $ 2 $ 54 $ 52 $ 7 $ 4 Discontinued operations — — — — — 5 — (9 ) Net periodic benefit (income) cost $ 18 $ 18 $ 2 $ 2 $ 54 $ 57 $ 7 $ (5 ) The Company recognized a $9 million curtailment gain on the U.S. primary postretirement plan in the second quarter of 2014 related to the Company's sale of the Industrial Packaging business. This curtailment charge was included in Income from Discontinued Operations. The Company expects to contribute approximately $100 million to its pension plans and $5 million to its other postretirement plans in 2015 . As of September 30, 2015 , contributions of $93 million to pension plans and $4 million to other postretirement plans have been made.

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	Debt Short-term debt as of September 30, 2015 and December 31, 2014 included commercial paper of $784 million and $1.4 billion , respectively. In May 2015, the Company issued €500 million of 1.25% Euro notes due May 22, 2023 at 99.239% of face value and €500 million of 2.125% Euro notes due May 22, 2030 at 99.303% of face value. Net proceeds from the May 2015 debt issuances were used to repay commercial paper and for general corporate purposes. The Company designated the €1.0 billion of Euro notes as a hedge of a portion of its net investment in Euro-denominated foreign operations to reduce foreign currency risk associated with the investment in these operations. Changes in the value of this debt resulting from fluctuations in the Euro to U.S. Dollar exchange rate have been recorded as foreign currency translation adjustments within Accumulated other comprehensive income (loss). Refer to the Accumulated other comprehensive income (loss) note for additional information regarding the net investment hedge. The approximate fair value and related carrying value of the Company's total long-term debt, including current maturities of long-term debt presented as short-term debt, as of September 30, 2015 and December 31, 2014 were as follows: In millions September 30, 2015 December 31, 2014 Fair value $ 7,252 $ 6,431 Carrying value 7,002 5,982 The approximate fair values of the Company's long-term debt, including current maturities, were based on a Level 2 valuation model, using observable inputs which included market rates for comparable instruments for the respective periods.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following table summarizes changes in Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended Nine Months Ended In millions September 30, September 30, 2015 2014 2015 2014 Beginning balance $ (1,046 ) $ 359 $ (658 ) $ 384 Foreign currency translation adjustments during the period (337 ) (514 ) (711 ) (404 ) Foreign currency translation adjustments reclassified to income — (1 ) — (133 ) Income taxes 2 — (32 ) — Total foreign currency translation adjustments (335 ) (515 ) (743 ) (537 ) Pension and other postretirement benefit adjustments during the period 1 (2 ) (1 ) (43 ) Pension and other postretirement benefit adjustments reclassified to income 15 13 45 42 Income taxes (5 ) (3 ) (13 ) 6 Total pension and other postretirement benefit adjustments 11 8 31 5 Ending balance $ (1,370 ) $ (148 ) $ (1,370 ) $ (148 ) Foreign currency translation adjustments reclassified to income are primarily related to the disposal of certain discontinued operations. Pension and other postretirement benefit adjustments reclassified to income primarily relate to the amortization of actuarial (gain) loss and prior service cost, and recognition of deferred actuarial losses related to plan settlements in net periodic benefit cost. In the second quarter of 2014, $6 million of deferred actuarial losses were reclassified to income related to the disposal of certain discontinued operations. Refer to the Pension and Other Postretirement Benefits and the Discontinued Operations notes for additional information. The Company designated the € 1.0 billion of Euro notes issued in May 2015 and the € 1.0 billion of Euro notes issued in May 2014 as hedges of a portion of its net investment in Euro-denominated foreign operations to reduce foreign currency risk associated with the investment in these operations. The carrying values of the Euro notes were $1.1 billion and $1.1 billion , respectively, as of September 30, 2015 . Changes in the value of this debt resulting from fluctuations in the Euro to U.S. dollar exchange rate have been recorded as foreign currency translation adjustments within Accumulated other comprehensive income (loss). The unrealized gain recorded in Accumulated other comprehensive income (loss) related to the net investment hedge was $244 million and $158 million as of September 30, 2015 and December 31, 2014 , respectively. The ending balance of Accumulated other comprehensive income (loss) as of September 30, 2015 and 2014 consisted of cumulative translation adjustment expense of $1.0 billion and income of $ 137 million , respectively, and unrecognized pension and other postretirement benefits costs, net of tax, of $ 362 million and $ 285 million , respectively.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information The Company has seven reportable segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products. See Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations for information regarding operating revenue and operating income for the Company's segments.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Results of discontinued operations	Results of the discontinued operations for the three and nine months ended September 30, 2014 were as follows: In millions Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Operating revenue $ — $ 798 Income before income taxes $ 10 $ 1,806 Income tax expense 14 (739 ) Income from discontinued operations $ 24 $ 1,067

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories as of September 30, 2015 and December 31, 2014 were as follows: In millions September 30, 2015 December 31, 2014 Raw material $ 446 $ 458 Work-in-process 145 133 Finished goods 650 677 LIFO reserve (88 ) (88 ) Total inventories $ 1,153 $ 1,180

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of indefinite-lived intangible assets	A summary of indefinite-lived intangible assets that were adjusted to fair value and the related impairment charges included in the statement of income in the third quarter of 2015 and 2014 was as follows: In millions Book Value Fair Value Total Impairment Charges 2015 $ 26 $ 24 $ 2 2014 11 8 3

Pension and Other Postretirem18

Pension and Other Postretirement Benefits (Tables)	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and other postretirement benefit costs	Pension and other postretirement benefit costs related to both continuing and discontinued operations for the three and nine months ended September 30, 2015 and 2014 , were as follows: Three Months Ended Nine Months Ended September 30, September 30, In millions Pension Other Postretirement Benefits Pension Other Postretirement Benefits 2015 2014 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost: Service cost $ 18 $ 20 $ 3 $ 3 $ 54 $ 60 $ 8 $ 8 Interest cost 23 26 6 5 69 78 18 17 Expected return on plan assets (38 ) (40 ) (7 ) (7 ) (114 ) (119 ) (19 ) (19 ) Amortization of actuarial (gain) loss 15 12 — — 45 36 — (3 ) Amortization of prior service cost — — — 1 — — — 1 Settlement/curtailment (gain) loss — — — — — 2 — (9 ) Net periodic benefit (income) cost $ 18 $ 18 $ 2 $ 2 $ 54 $ 57 $ 7 $ (5 ) Amounts were included in the statement of income as follows: Continuing operations $ 18 $ 18 $ 2 $ 2 $ 54 $ 52 $ 7 $ 4 Discontinued operations — — — — — 5 — (9 ) Net periodic benefit (income) cost $ 18 $ 18 $ 2 $ 2 $ 54 $ 57 $ 7 $ (5 )

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Fair value and carrying value of long-term debt, including current maturities	The approximate fair value and related carrying value of the Company's total long-term debt, including current maturities of long-term debt presented as short-term debt, as of September 30, 2015 and December 31, 2014 were as follows: In millions September 30, 2015 December 31, 2014 Fair value $ 7,252 $ 6,431 Carrying value 7,002 5,982

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table summarizes changes in Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended Nine Months Ended In millions September 30, September 30, 2015 2014 2015 2014 Beginning balance $ (1,046 ) $ 359 $ (658 ) $ 384 Foreign currency translation adjustments during the period (337 ) (514 ) (711 ) (404 ) Foreign currency translation adjustments reclassified to income — (1 ) — (133 ) Income taxes 2 — (32 ) — Total foreign currency translation adjustments (335 ) (515 ) (743 ) (537 ) Pension and other postretirement benefit adjustments during the period 1 (2 ) (1 ) (43 ) Pension and other postretirement benefit adjustments reclassified to income 15 13 45 42 Income taxes (5 ) (3 ) (13 ) 6 Total pension and other postretirement benefit adjustments 11 8 31 5 Ending balance $ (1,370 ) $ (148 ) $ (1,370 ) $ (148 )

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]
Operating revenue		$ 0		$ 798
Income before income taxes		10		1,806
Income tax expense		14		(739)
Income from discontinued operations	$ 0	$ 24	$ 0	$ 1,067

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before income taxes	$ 10		$ 1,806
Gain on discontinued operations, before tax		$ 0	1,719
Discontinued Operations, Disposed of by Sale [Member] | Industrial Packaging [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on discontinued operations, before tax			1,700
Gain on discontinued operations, after tax			1,100
Income tax expense related to repatriation of foreign earnings			175
Repatriation of foreign earnings			$ 1,300

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Feb. 18, 2014	Sep. 30, 2015
Income Tax Examination [Line Items]
Period for unrecognized tax benefits to decrease		12 months
Decrease in unrecognized tax benefits related to intercompany transactions		$ 68
Internal Revenue Service (IRS) [Member] | Tax Year 2006 [Member]
Income Tax Examination [Line Items]
IRS Notice of Deficiency tax assessment	$ 70

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw material	$ 446	$ 458
Work-in-process	145	133
Finished goods	650	677
LIFO reserve	(88)	(88)
Total inventories	$ 1,153	$ 1,180

Goodwill and Intangible Asset25

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived intangible assets book value	$ 26,000,000	$ 11,000,000
Indefinite-lived intangible assets fair value	24,000,000	8,000,000
Goodwill impairment charges	0	0
Total impairment charges of intangible assets	$ 2,000,000	$ 3,000,000

Pension and Other Postretirem26

Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Amounts were included in the statement of income as follows:
Continuing operations	$ 511	$ 507	$ 1,449	$ 1,429
Discontinued operations	0	24	0	1,067
Net Income	511	531	1,449	2,496
Pension [Member]
Components of net periodic benefit cost:
Service cost	18	20	54	60
Interest cost	23	26	69	78
Expected return on plan assets	(38)	(40)	(114)	(119)
Amortization of actuarial (gain) loss	15	12	45	36
Amortization of prior service cost	0	0	0	0
Settlement/curtailment (gain) loss	0	0	0	2
Net periodic benefit (income) cost	18	18	54	57
Amounts were included in the statement of income as follows:
Continuing operations	18	18	54	52
Discontinued operations	0	0	0	5
Net Income	18	18	54	57
Other Postretirement Benefits [Member]
Components of net periodic benefit cost:
Service cost	3	3	8	8
Interest cost	6	5	18	17
Expected return on plan assets	(7)	(7)	(19)	(19)
Amortization of actuarial (gain) loss	0	0	0	(3)
Amortization of prior service cost	0	1	0	1
Settlement/curtailment (gain) loss	0	0	0	(9)
Net periodic benefit (income) cost	2	2	7	(5)
Amounts were included in the statement of income as follows:
Continuing operations	2	2	7	4
Discontinued operations	0	0	0	(9)
Net Income	$ 2	$ 2	$ 7	$ (5)

Pension and Other Postretirem27

Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2014	Sep. 30, 2015
Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected current year contributions to benefit plans		$ 100
Contributions to benefit plans		93
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected current year contributions to benefit plans		5
Contributions to benefit plans		$ 4
Income from Discontinued Operation [Member] | Industrial Packaging [Member] | United States Postretirement Benefit Plan of US Entity [Member]
Defined Benefit Plan Disclosure [Line Items]
Curtailment gain	$ 9

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Millions	Sep. 30, 2015USD ($)	May. 31, 2015EUR (€)	Dec. 31, 2014USD ($)
Debt Instrument [Line Items]
Outstanding commercial paper | $	$ 784		$ 1,400
Notes Payable, Other Payables [Member] | 1.25% Euro Notes Due May 22, 2023 [Member]
Debt Instrument [Line Items]
Face value of notes		€ 500,000,000
Stated interest rate on notes		1.25%
Discount rate on face value of notes		99.239%
Notes Payable, Other Payables [Member] | 2.125% Euro Notes Due May 22, 2030 [Member]
Debt Instrument [Line Items]
Face value of notes		€ 500,000,000
Stated interest rate on notes		2.125%
Discount rate on face value of notes		99.303%
Euro Notes [Member] | Net Investment Hedging [Member]
Debt Instrument [Line Items]
Face value of notes		€ 1,000,000,000

Debt - Fair Value and Related C

Debt - Fair Value and Related Carrying Values (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Fair value	$ 7,252	$ 6,431
Carrying value	$ 7,002	$ 5,982

Accumulated Other Comprehensi30

Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	May. 31, 2015EUR (€)	Dec. 31, 2014USD ($)	May. 31, 2014EUR (€)
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ (1,046)	$ 359		$ (658)	$ 384
Ending balance	(1,370)	(148)	$ 359	(1,370)	(148)
Carrying value						$ 7,002		$ 5,982
Accumulated other comprehensive income (loss)	(1,046)	359	359	(658)	384	(1,370)		(658)
Accumulated Translation Adjustment [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) adjustments during the period	(337)	(514)		(711)	(404)
Other comprehensive income (loss), adjustments reclassified to income	0	(1)		0	(133)
Income taxes	2	0		(32)	0
Other comprehensive income (loss), net of tax	(335)	(515)		(743)	(537)
Ending balance	(1,000)	137		(1,000)	137
Accumulated other comprehensive income (loss)	(1,000)	137		(1,000)	137	(1,000)
Accumulated Defined Benefit Plans Adjustment [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) adjustments during the period	1	(2)		(1)	(43)
Other comprehensive income (loss), adjustments reclassified to income	15	13		45	42
Income taxes	(5)	(3)		(13)	6
Other comprehensive income (loss), net of tax	11	8		31	5
Ending balance	(362)	(285)		(362)	(285)
Accumulated other comprehensive income (loss)	$ (362)	$ (285)		$ (362)	$ (285)	(362)
Euro Notes [Member] | Net Investment Hedging [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Face value of notes | €							€ 1,000,000,000
Accumulated other comprehensive income related to net investment hedge unrealized gain						244		$ 158
Euro Notes [Member] | Net Investment Hedging [Member] | Euro Notes Issued May 2015 [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Face value of notes | €							€ 1,000,000,000
Euro Notes [Member] | Net Investment Hedging [Member] | Euro Notes Issued May 2014 [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Face value of notes | €									€ 1,000,000,000
Notes Payable, Other Payables [Member] | Net Investment Hedging [Member] | Euro Notes Issued May 2015 [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Carrying value						1,100
Notes Payable, Other Payables [Member] | Net Investment Hedging [Member] | Euro Notes Issued May 2014 [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Carrying value						$ 1,100
Discontinued Operations [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Deferred actuarial losses reclassified to income			$ 6

Segment Information (Details)

Segment Information (Details)	9 Months Ended
	Sep. 30, 2015Segment
Segment Reporting [Abstract]
Number of reportable segments	7