Income taxes  — In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions.  We  assess our income tax positions and record tax assets or liabilities for all years subject to examination based upon  management’s evaluation of the facts and circumstances and information available at the reporting dates. For those tax  positions where it is more likely than not that a tax benefit will be sustained, we have recorded the lar gest amount of tax benefit  with a greater-than-50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of  all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained,  no tax benefit has been recognized in the financial statements.  Where applicable, the related interest cost has also been  recognized as a component of the income tax provision. Research and development  — Research and development costs include expenditures for research activities relating to product  development and improvement. Salaries, fringes and occupancy costs, including building, utility and overhead costs, comprise  the vast majority of these expenses and are expensed as incurred. Research and development expenses were  $72, $64 and $57  in 2014, 2013 and 2012. In July 2013, the Financial Accounting Standards Board (FASB) issued guidance to clarify financial statement presentation  of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists.  Generally, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial  statements as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit  carryforward. An exception exists to the extent a net operating loss carryforward, a similar tax loss or a tax credit carryforward  is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that  would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to  use, and the entity does not intend to use, the deferred tax asset for such purpose. If the exception applies, the unrecognized tax  benefit must be presented in the financial statements as a liability and not combined with deferred tax assets.  The assessment of  whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the  reporting date and must be made presuming disallowance of the tax position at the reporting date.  This guidance became  effective January 1, 2014 and is consistent with our past practice, so adoption did not impact our financial condition or results  of operations. In March 2013, the FASB issued guidance to clarify existing requirements for the release – the recognition of an amount in  the income statement – of the cumulative translation adjustment.The guidance applies to the release of cumulative translation  adjustment when an entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business  within a foreign entity. It also applies to the release of the cumulative translation adjustment when there is a loss of a  controlling financial interest in a foreign entity or a step acquisition involving an equity method investment that is a foreign  entity. The accounting for the financial interest within a foreign entity is the same regardless of the form of the transaction. This guidance, which became effective January 1, 2014, did not impact our financial condition or results of operations in 2014  but could affect our accounting for future transactions. In June 2014, the FASB issued guidance to provide clarity on whether to treat a performance tar get that could be achieved  after the requisite service period as a performance condition that af fects vesting or as a nonvesting condition that af fects the  grant-date fair value of a share-based payment award. Generally , an award with a performance tar get also requires an employee  to render service until the performance tar get is achieved. In some cases, however, the terms of an award may provide that the  performance target could be achieved after an employee completes the requisite service period.  The amendment requires that a  performance target that affects vesting and extends beyond the end of the service period be treated as a performance condition  and not as a factor in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in  which it becomes probable that the performance tar get will be achieved and should represent the compensation cost attributable  to the period(s) for which the requisite service has already been rendered.  The guidance becomes effective January 1, 2016. In May 2014, the FASB issued guidance that requires companies to recognize revenue in a manner that depicts the transfer  of promised goods or services to customers in amounts that reflect the consideration a company expects to be entitled to in  exchange for those goods or services. The new guidance will also require new disclosures about the nature, amount, timing and  uncertainty of revenue and cash flows arising from contracts with customers.  This guidance will be effective January 1, 2017  and early adoption is not permitted. The guidance allows for either a full retrospective or a modified retrospective transition  method. We are currently evaluating the impact this guidance will have on our consolidated results of operations, financial  position and cash flows. 49 Recently issued accounting pronouncements Recently adopted accounting pronouncements