Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components Of Earnings Before Income Taxes


Years ended December 31,	2011		2010		2009
U.S.	$	5,083	$	4,310	$	1,638
Non-U.S.		310		197		93
Total	$	5,393	$	4,507	$	1,731

Schedule Of Income Tax Expense/(Benefit)


Years ended December 31,	2011			2010			2009
Current tax expense
U.S. federal	$	(605	)	$	13		$	(132	)
Non-U.S.		93			80			69
U.S. state		(22	)		(137	)		145
Total current		(534	)		(44	)		82
Deferred tax expense
U.S. federal		1,856			969			457
Non-U.S.		(8	)		(13	)		(55	)
U.S. state		68			284			(88	)
Total deferred		1,916			1,240			314
Total income tax expense	$	1,382		$	1,196		$	396

Schedule Of Reconciliation Of U.S. Federal Statutory Tax Rate To Our Effective Income Tax Rate


Years ended December 31,	2011			2010			2009
U.S. federal statutory tax		35.0	%		35.0	%		35.0	%
Research and development credits		(2.7	)		(3.5	)		(10.1	)
Tax on international activities		(0.6	)		(1.2	)		(2.4	)
Tax deductible dividends		(0.8	)		(0.9	)		(2.2	)
State income tax provision, net of effect on U.S. federal tax		0.7			1.8			2.2
Medicare Part D law change					3.3
Federal audit settlement		(7.4	)		(8.2	)
Other provision adjustments		1.4			0.2			0.4
Effective income tax rate		25.6	%		26.5	%		22.9	%

Significant Components Of Deferred Tax Assets, Net Of Deferred Tax Liabilities


	2011			2010
Retiree health care accruals	$	2,820		$	3,061
Inventory and long-term contract methods of income recognition, fixed assets and other (net of valuation allowance of $27 and $27)		(5,189	)		(2,644	)
Partnerships and joint ventures		(228	)		(263	)
Other employee benefits accruals		1,352			1,272
In-process research and development related to acquisitions		51			65
Net operating loss, credit and capital loss carryovers (net of valuation allowance of $74 and $78)		488			300
Pension asset		5,315			3,443
Customer and commercial financing		(1,471	)		(1,645	)
Unremitted earnings of non-U.S. subsidiaries		(66	)		(60	)
Other net unrealized losses		69			13
Net deferred tax assets⁽¹⁾	$	3,141		$	3,542

⁽¹⁾

Of the deferred tax asset for net operating loss and credit carryovers, $336 expires in years ending from December 31, 2012 through December 31, 2031 and $152 may be carried over indefinitely.

Schedule Of Net Deferred Tax Assets


	2011			2010
Deferred tax assets	$	16,181		$	14,383
Deferred tax liabilities		(12,939	)		(10,736	)
Valuation allowance		(101	)		(105	)
Net deferred tax assets	$	3,141		$	3,542

Schedule Of Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits


	2011			2010			2009
Unrecognized tax benefits – January 1	$	1,198		$	1,787		$	1,453
Gross increases – tax positions in prior periods		154			95			219
Gross decreases – tax positions in prior periods		(383	)		(465	)		(31	)
Gross increases – current-period tax positions		28			76			148
Gross decreases – current-period tax positions		(15	)		(40	)
Settlements		(42	)		(254	)
Lapse of statute of limitations		(1	)		(1	)		(2	)
Unrecognized tax benefits – December 31	$	939		$	1,198		$	1,787

- 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.

+ References+ Details