Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements [Abstract]

Components of income before income taxes

The components of income before income taxes are as follows for the three years ended December 31:

	2011		2010		2009
United States	$	1,098	$	1,252	$	1,173
International	2,691		2,178		2,365
Total Income before income taxes	$	3,789	$	3,430	$	3,538

Provision for Income Taxes

The provision for income taxes consists of the following for the three years ended December 31:

	2011		2010		2009
United States	$	360	$	427	$	399
International	875		690		742
Total Provision for income taxes	$	1,235	$	1,117	$	1,141

Schedule of Components of Income Tax Expense (Benefit)

Temporary differences between accounting for financial statement purposes and accounting for tax purposes result in the current provision for taxes being higher (lower) than the total provision for income taxes as follows:

	2011			2010			2009
Goodwill and intangible assets	$	(1	)	$	(11	)	$	15
Property, plant and equipment	(19		)	(29		)	(24		)
Pension and other retiree benefits	(47		)	4			27
Stock-based compensation	11			12			18
Tax loss and tax credit carryforwards	(14		)	(28		)	(27		)
Valuation allowances	—			1			3
Other, net	32			122			7
Total deferred tax provision	$	(38	)	$	71		$	19

Effective tax rate reconciliation

The difference between the statutory U.S. federal income tax rate and the Company’s global effective tax rate as reflected in the Consolidated Statements of Income is as follows:

Percentage of Income before income taxes	2011		2010		2009
Tax at United States statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	0.4		1.1		0.5
Earnings taxed at other than United States statutory rate	(1.7	)	(4.6	)	(2.5	)
Venezuela hyperinflationary transition charge	—		2.8		—
Other, net	(1.1	)	(1.7	)	(0.8	)
Effective tax rate	32.6	%	32.6	%	32.2	%

Components of deferred tax assets (liabilities)

The components of deferred tax assets (liabilities) are as follows at December 31:

	2011			2010
Deferred tax liabilities:
Goodwill and intangible assets	$	(471	)	$	(463	)
Property, plant and equipment	(345		)	(344		)
Other	(104		)	(116		)
	(920		)	(923		)
Deferred tax assets:
Pension and other retiree benefits	480			471
Tax loss and tax credit carryforwards	106			130
Accrued liabilities	176			145
Stock-based compensation	115			108
Other	111			163
Valuation allowance	(1		)	(1		)
	987			1,016
Net deferred income taxes	$	67		$	93

	2011			2010
Deferred taxes included within:
Assets:
Other current assets	$	204		$	117
Deferred income taxes	115			84
Liabilities:
Deferred income taxes	(252		)	(108		)
Net deferred income taxes	$	67		$	93

Unrecognized tax benefits activity

Unrecognized tax benefits activity for the years ended December 31, 2011, 2010 and 2009 is summarized below:

	2011			2010			2009
Unrecognized tax benefits:
Balance, January 1	$	171		$	187		$	171
Increases as a result of tax positions taken during the current year	76			38			30
Decreases of tax positions taken during prior years	(46		)	(63		)	(9		)
Increases of tax positions taken during prior years	10			16			18
Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations	(30		)	(3		)	(24		)
Effect of foreign currency rate movements	(5		)	(4		)	1
Balance, December 31	$	176		$	171		$	187