Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table summarizes the difference between income tax expense at the United States statutory rate of 35%and the income tax benefit at effective worldwide tax rates for 2011, 2010 and 2009:

Millions of dollars	2011			2010			2009
Earnings (loss) before income taxes
United States	$	(240	)	$	(256	)	$	(110	)
Foreign	212			842			403
Earnings (loss) before income taxes	(28		)	586			293
Income tax computed at United States statutory rate	(10		)	205			103
U.S. government tax incentives, including Energy Tax Credits	(379		)	(230		)	(125		)
Foreign government tax incentives, including BEFIEX	(100		)	(103		)	(44		)
Foreign tax rate differential	(13		)	(46		)	(31		)
U.S. foreign tax credits	(37		)	(28		)	(19		)
Valuation allowances	11			(9		)	10
Deductible interest on capital	—			(7		)	(15		)
State and local taxes, net of federal tax benefit	(4		)	(2		)	1
Medicare Part D subsidy	—			—			12
Foreign withholding taxes	10			12			15
Non-deductible government settlements	30			33			—
U.S. tax on foreign dividends and subpart F income	26			49			10
Settlement of global tax audits	10			56			22
Other items, net	20			6			—
Income tax computed at effective worldwide tax rates	$	(436	)	$	(64	)	$	(61	)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Current and deferred tax (benefit) provisions

The following table summarizes our income tax (benefits) provisions for 2011, 2010 and 2009:

	2011						2010						2009
Millions of dollars	Current			Deferred			Current			Deferred			Current			Deferred
United States	$	(18	)	$	(464	)	$	(101	)	$	(204	)	$	11		$	(182	)
Foreign	114			(64		)	204			41			115			(4		)
State and local	(1		)	(3		)	(5		)	1			(4		)	3
	$	95		$	(531	)	$	98		$	(162	)	$	122		$	(183	)
Total income tax benefit				$	(436	)				$	(64	)				$	(61	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following table summarizes the significant components of our deferred tax liabilities and assets at December 31, 2011 and 2010:

Millions of dollars	2011			2010
Deferred tax liabilities
Intangibles	$	527		$	577
Property, net	149			103
LIFO inventory	30			54
Other	178			256
Total deferred tax liabilities	884			990
Deferred tax assets
U.S. general business credit carryforwards, including Energy Tax Credits	934			555
Pensions	468			455
Loss carryforwards	554			351
Postretirement obligations	190			252
Foreign tax credit carryforwards	212			175
Research and development capitalization	200			153
Employee payroll and benefits	112			139
Accrued expenses	94			77
Product warranty accrual	60			68
Receivable and inventory allowances	47			48
Other	166			212
Total deferred tax assets	3,037			2,485
Valuation allowances for deferred tax assets	(208		)	(193		)
Deferred tax assets, net of valuation allowances	2,829			2,292
Net deferred tax assets	$	1,945		$	1,302

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

Unrecognized tax benefits

The following table represents a reconciliation of the beginning and ending amount of unrecognized tax benefits that if recognized would impact the effective tax rate, excluding federal benefits of state and local tax positions, and interest and penalties:

Millions of dollars	2011			2010			2009
Balance, January 1	$	190		$	157		$	119
Additions for tax positions of the current year	9			2			41
Additions for tax positions of prior years	10			83			25
Reductions for tax positions of prior years	(24		)	(50		)	(16		)
Settlements during the period	(1		)	(1		)	(2		)
Lapses of applicable statute of limitation	(6		)	(1		)	(10		)
	$	178		$	190		$	157