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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Tax Expense (Benefit) [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Earnings before income taxes for the years ended December 31 were taxed within the following jurisdictions:



In millions	2011			2010			2009
United States	$	(718.0	)	$	(38.7	)	$	(293.9	)
Non-U.S.	1,331.3			1,049.4			888.2
Total	$	613.3		$	1,010.7		$	594.3

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

The components of the Provision for income taxes for the years ended December 31 were as follows:



In millions	2011			2010			2009
Current tax expense (benefit):
United States	$	59.2		$	31.0		$	(22.7	)
Non-U.S.	202.6			114.5			141.1
Total:	261.8			145.5			118.4
Deferred tax expense (benefit):
United States	(120.0		)	84.9			10.8
Non-U.S.	45.4			(2.3		)	(47.7		)
Total:	(74.6		)	82.6			(36.9		)
Total tax expense (benefit):
United States	(60.8		)	115.9			(11.9		)
Non-U.S.	248.0			112.2			93.4
Total	$	187.2		$	228.1		$	81.5

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

The Provision for income taxes differs from the amount of income taxes determined by applying the applicable U.S. statutory income tax rate to pretax income, as a result of the following differences:



	Percent of pretax income
	2011		2010		2009
Statutory U.S. rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in rates resulting from:
Subsidiaries results subject to non-U.S. tax rates⁽¹⁾	(32.7	)	(17.7	)	(30.2	)
U.S. tax on non-U.S. earnings⁽¹⁾	4.8		2.4		9.6
State and local income taxes⁽¹⁾	(4.7	)	—		9.2
Non-deductible goodwill write-off - Hussmann	23.2		—		—
Reserves for uncertain tax positions	5.8		0.1		(3.3	)
Impact of change in taxation of retiree drugs subsidy	—		4.0		—
Provision to return and other true-up adjustments	0.5		(0.2	)	(6.0	)
Other adjustments	(1.4	)	(1.0	)	(0.6	)
Effective tax rate	30.5	%	22.6	%	13.7	%


(1)	Net of changes in valuation allowances

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

At December 31, a summary of the deferred tax accounts were as follows:



In millions	2011			2010
Deferred tax assets:
Inventory and accounts receivable	$	26.8		$	34.9
Fixed assets and intangibles	4.0			2.6
Postemployment and other benefit liabilities	814.3			750.2
Product liability	258.7			282.7
Other reserves and accruals	213.8			210.9
Net operating losses and credit carryforwards	1,002.9			1,075.4
Other	148.7			169.7
Gross deferred tax assets	2,469.2			2,526.4
Less: deferred tax valuation allowances	(333.8		)	(378.7		)
Deferred tax assets net of valuation allowances	$	2,135.4		$	2,147.7
Deferred tax liabilities:
Inventory and accounts receivable	$	(44.9	)	$	(48.5	)
Fixed assets and intangibles	(2,149.3		)	(2,324.1		)
Postemployment and other benefit liabilities	(4.6		)	(2.9		)
Other reserves and accruals	(6.6		)	(12.5		)
Other	(74.3		)	(85.0		)
Gross deferred tax liabilities	(2,279.7		)	(2,473.0		)
Net deferred tax assets (liabilities)	$	(144.3	)	$	(325.3	)

Summary of Tax Credit Carryforwards [Table Text Block]

At December 31, 2011, the Company had the following operating loss and tax credit carryforwards available to offset taxable income in prior and future years:



In millions	Amount		Expiration Period
U.S. Federal net operating loss carryforwards	$	1,613.1	2012-2031
U.S. Federal credit carryforwards	85.4		2014-2031
U.S. State net operating loss carryforwards	3,342.1		2012-2031
Non-U.S. net operating loss carryforwards	1,124.7		2012-Unlimited
Non-U.S. credit carryforwards	8.9		Unlimited

Summary of Valuation Allowance

Activity associated with the Company’s valuation allowance is as follows:



In millions	2011			2010			2009
Beginning balance	$	378.7		$	352.6		$	247.8
Increase to valuation allowance	17.0			106.9			166.0
Decrease to valuation allowance	(52.2		)	(45.9		)	(17.8		)
Other deductions	(1.5		)	(1.5		)	(4.9		)
Write off against valuation allowance	—			—			(41.3		)
Acquisition and purchase accounting	—			—			(38.9		)
Accumulated other comprehensive income (loss)	(8.2		)	(33.4		)	41.7
Ending balance	$	333.8		$	378.7		$	352.6

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



In millions	2011			2010			2009
Beginning balance	$	534.1		$	525.1		$	589.6
Additions based on tax positions related to the current year	16.7			14.1			25.2
Additions based on tax positions related to acquisitions	—			—			—
Additions based on tax positions related to prior years	64.9			116.3			80.5
Reductions based on tax positions related to prior years	(63.6		)	(101.4		)	(121.8		)
Reductions related to settlements with tax authorities	(3.7		)	(11.9		)	(33.4		)
Reductions related to lapses of statute of limitations	(10.4		)	(6.0		)	(18.9		)
Translation (gain)/loss	(1.1		)	(2.1		)	3.9
Ending balance	$	536.9		$	534.1		$	525.1

- Definition

Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination.

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- Definition

Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

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- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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