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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income Tax (Expense) Benefit



	Year Ended December 31,
	2012			2011			2010
	(in millions)
Current income tax benefit (expense)
Federal	$	34		$	(1	)	$	48
State	22			(20		)	15
Total current income tax benefit (expense)	56			(21		)	63
Deferred income tax (expense) benefit
Federal	(199		)	(136		)	(270		)
State	(10		)	(95		)	40
Total deferred income tax expense	(209		)	(231		)	(230		)
Foreign income tax (expense) benefit	(1		)	(2		)	1
Total income tax expense	$	(154	)	$	(254	)	$	(166	)

Factors Causing Variation in Effective Tax Rate From US Federal Statutory Rate



	Year Ended December 31,
	2012			2011			2010
	(in millions)
Income tax benefit at the federal statutory rate	$	1,460		$	923		$	1,155
Effect of:
State income taxes, net of federal income tax effect	137			80			118
State law changes, net of federal income tax effect	(5		)	(38		)	—
Reduction (increase) in liability for unrecognized tax benefits	38			(1		)	18
Tax expense related to equity awards	(15		)	(13		)	(42		)
Change in valuation allowance	(1,756		)	(1,221		)	(1,418		)
Other, net	(13		)	16			3
Income tax expense	$	(154	)	$	(254	)	$	(166	)
Effective income tax rate	(3.7		)%	(9.6		)%	(5.0		)%

Schedule of Income Tax Expense Benefit Allocated to Other Items



	Year Ended December 31,
	2012		2011			2010
	(in millions)
Unrecognized net periodic pension and other postretirement benefit cost⁽¹⁾	$	—	$	—		$	5
Unrealized holding gains/losses on securities⁽¹⁾	—		(1		)	1

Schedule of Deferred Income Tax Assets and Liabilities



	December 31, 2012						December 31, 2011
	Current			Long-Term			Current			Long-Term
	(in millions)
Deferred tax assets
Net operating loss carryforwards	$	—		$	4,398		$	—		$	3,873
Capital loss carryforwards	—			126			—			52
Accruals and other liabilities	577			1,061			461			1,094
Tax credit carryforwards	—			431			—			471
Pension and other postretirement benefits	—			430			—			324
	577			6,446			461			5,814
Valuation allowance	(472		)	(5,183		)	(284		)	(3,580		)
	105			1,263			177			2,234
Deferred tax liabilities
Property, plant and equipment	—			420			—			1,527
Intangibles	—			6,855			—			6,720
Investments	—			802			—			855
Other	104			233			47			118
	104			8,310			47			9,220
Current deferred tax asset	$	1					$	130
Long-term deferred tax liability				$	7,047					$	6,986

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	2012			2011
	(in millions)
Balance at January 1	$	225		$	228
Additions based on current year tax positions	1			4
Additions based on prior year tax positions	1			4
Reductions for prior year tax positions	(1		)	(1		)
Reductions for settlements	(52		)	(2		)
Reductions for lapse of statute of limitations	(3		)	(8		)
Balance at December 31	$	171		$	225

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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