Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income before income taxes

	Year Ended December 31,
	2011		2010		2009
	(in millions)
Domestic	$	1,064	$	1,258	$	1,210
Foreign		264		226		176
Income before income taxes	$	1,328	$	1,484	$	1,386

Components of current and deferred portions of the provision for income taxes

	Year Ended December 31,
	2011		2010		2009
	(in millions)
Current income tax provision:
Federal	$	143	$	302	$	304
State and local		39		53		58
Foreign		71		52		39
Subtotal		253		407		401
Deferred income tax provision:
Federal		84		84		60
State and local		12		16		5
Foreign		11		11		9
Subtotal		107		111		74
Total provision for income taxes	$	360	$	518	$	475

Reconciliation of the statutory federal income tax rate to the effective income tax rate

	Year Ended December 31,
	2011			2010			2009
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State and local income taxes, net of federal income tax benefit		2.5			3.0			3.1
Foreign income taxes		(2.2	)		(1.0	)		(0.5	)
Manufacturing benefits		(1.6	)		(1.4	)		(0.8	)
Research and experimentation and other tax credits		(1.0	)		(1.0	)		(1.3	)
Resolution of tax contingencies		(6.7	)		(0.6	)		(1.9	)
Goodwill impairment		1.1			—			—
Other, net		—			0.9			0.7
Effective income tax rate		27.1	%		34.9	%		34.3	%

Components of net deferred tax assets and liabilities

	December 31,
	2011			2010
	(in millions)
Deferred tax assets:
Inventoried costs	$	27		$	24
Compensation and benefits		113			104
Pension and postretirement benefits		379			337
Loss carryforwards		19			14
Tax credit carryforwards		10			8
Other		103			113
Gross deferred tax assets		651			600
Less: valuation allowance		(14	)		(3	)
Net deferred tax assets		637			597
Deferred tax liabilities:
Goodwill and other intangible assets	$	670		$	606
Income recognition on contracts in process		102			97
Property, plant and equipment		101			66
Other		50			22
Gross deferred tax liabilities		923			791
Total net deferred tax liabilities	$	(286	)	$	(194	)

Classification of deferred tax assets and liabilities

	December 31,
	2011			2010
	(in millions)
Current deferred tax assets	$	99		$	114
Non-current deferred tax liabilities		(385	)		(308	)
Total net deferred tax liabilities	$	(286	)	$	(194	)

Reconciliation of the change in unrecognized income tax benefits, excluding interest and penalties

	2011			2010			2009
	(in millions)
Balance at January 1	$	237		$	219		$	171
Additions for tax positions related to the current year		9			8			17
Additions for tax positions related to prior years		35			73			64
Reductions for tax positions related to prior years		(13	)		(63	)		—
Reductions for tax positions related to settlements with taxing authorities		(5	)		—			(2	)
Reduction for tax positions related to prior years as a result of a lapse of statute of limitations		(76	)		—			(31	)
Balance at December 31	$	187		$	237		$	219