INCOME TAXES (Tables)

12 Months Ended

Dec. 30, 2011

The (Provision for) Benefit from Income Taxes

Our (provision for)/benefit from income taxes consists of:

($ in millions)		2011			2010			2009
Current	-U.S. Federal	$	53		$	117		$	(169	)
	-U.S. State	—			(7		)	(12		)
	-Non-U.S.	(55		)	(51		)	(61		)
		(2		)	59			(242		)
Deferred	-U.S. Federal	(116		)	(150		)	234
	-U.S. State	(10		)	(14		)	28
	-Non-U.S.	(30		)	12			45
		(156		)	(152		)	307
		$	(158	)	$	(93	)	$	65

Unrecognized Tax Benefits Reconciliation

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2009 to the end of 2011:

($ in millions)	Amount
Unrecognized tax benefit at beginning of 2009	$	141
Change attributable to tax positions taken during a prior period	99
Change attributable to tax positions taken during the current period	22
Decrease attributable to settlements with taxing authorities	(10		)
Decrease attributable to lapse of statute of limitations	(3		)
Unrecognized tax benefit at end of 2009	249
Change attributable to tax positions taken during a prior period	(187		)
Change attributable to tax positions taken during the current period	25
Decrease attributable to settlements with taxing authorities	(47		)
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at end of 2010	39
Change attributable to tax positions taken during a prior period	(10		)
Change attributable to withdrawal of tax positions previously taken or expected to be taken	(6		)
Change attributable to tax positions taken during the current period	19
Decrease attributable to settlements with taxing authorities	—
Decrease attributable to lapse of statute of limitations	(3		)
Unrecognized tax benefit at end of 2011	$	39

Total Deferred Tax Assets and Liabilities

Total deferred tax assets and liabilities as of year-end 2011 and year-end 2010, were as follows:

($ in millions)	2011			2010
Deferred tax assets	$	1,145		$	1,236
Deferred tax liabilities	(18		)	(100		)
Net deferred taxes	$	1,127		$	1,136

Composition of Net Deferred Tax Balances

The following table details the composition of the net deferred tax balances at year-end 2011 and 2010.

($ in millions) Balance Sheet Caption	At Year-End 2011			At Year-End 2010
Current deferred taxes, net	$	282		$	246
Long-term deferred taxes, net	873			932
Current liabilities, other	(13		)	(19		)
Long-term liabilities, other	(15		)	(23		)
Net deferred taxes	$	1,127		$	1,136

Types of Temporary Differences and Carry-Forwards that Significantly Effect Deferred Tax Assets and Liabilities

The tax effect of each type of temporary difference and carry-forward that gives rise to a significant portion of our deferred tax assets and liabilities as of year-end 2011 and year-end 2010, were as follows:

($ in millions)	2011			2010
Self-insurance	$	20		$	22
Employee benefits	295			296
Deferred income	15			18
Reserves	64			213
Frequent guest program	42			104
Joint venture interests	(8		)	99
ASC 740 deferred taxes	5			5
Tax credits	281			235
Net operating loss carry-forwards	467			204
Timeshare financing	—			—
Property, equipment, and intangible assets	(10		)	18
Other, net	28			(16		)
Deferred taxes	1,199			1,198
Less: valuation allowance	(72		)	(62		)
Net deferred taxes	$	1,127		$	1,136

Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations

The following table reconciles the U.S. statutory tax rate to our effective income tax rate:

	2011		2010		2009
U.S. statutory tax rate	35.0	%	35.0	%	(35.0	)%
U.S. state income taxes, net of U.S. federal tax benefit	2.3		2.4		(2.1	)
Nondeductible expenses	1.8		0.5		0.5
Non-U.S. income	(0.9	)	(3.7	)	5.2
Audit activity (1)	0.0		(15.6	)	13.7
Company owned life insurance	0.0		0.0		(2.0	)
Change in valuation allowance (2)	8.9		0.9		2.2
Tax credits	(1.0	)	(0.4	)	(0.4	)
Other, net	(1.7	)	(2.3	)	2.3
Effective rate	44.4	%	16.8	%	(15.6	)%

⁽¹⁾  Primarily related to the treatment of funds received from certain non-U.S. subsidiaries, as discussed earlier in this footnote.

⁽²⁾  Primarily related to additional impairment of certain deferred tax assets transferred to MVW, as discussed earlier in this footnote.