
11.	Income Taxes

The U.S. Federal income tax jurisdiction is the Company’s major tax jurisdiction. The statutes of limitations for the Company’s U.S. Federal income tax returns for the years ended December 31, 2006 through 2010 are open as of September 30, 2011. In the second quarter of 2011, the Company reached an agreement with the Internal Revenue Service in connection with the Company’s 2006 and 2007 U.S. Federal income tax returns. As a result of this agreement, the Company reversed previously accrued amounts relating to its provision for income taxes by $12 million. The statutes of limitations for these tax returns are expected to close in the fourth quarter of 2011. In addition, the Company has numerous state and foreign income tax return audits currently in process. As of September 30, 2011, the Company anticipates that unrecognized tax benefits will decrease by approximately $97 million over the next 12 months.

Non-current income taxes payable include accrued potential interest of $24 million ($14 million after income taxes) at September 30, 2011 and $22 million ($13 million after income taxes) at December 31, 2010, respectively, and potential penalties of $13 million at September 30, 2011 and December 31, 2010, respectively.