Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income (loss) from continuing operations before income taxes

(In millions)	2011		2010			2009
U.S.	$	137	$	(63	)	$	(229)
Non-U.S.		200		149			80
Total income (loss) from continuing operations before income taxes	$	337	$	86		$	(149)

Income tax expense (benefit) for continuing operations

(In millions)	2011			2010			2009
Current:
Federal	$	(23	)	$	(79	)	$	160
State		15			3			17
Non-U.S.		29			19			(8)
		21			(57	)		169
Deferred:
Federal		67			59			(238)
State		1			(5	)		(22)
Non-U.S.		6			(3	)		15
		74			51			(245)
Income tax expense (benefit)	$	95		$	(6	)	$	(76)

Federal statutory income tax rate to effective income tax rate for continuing operations

	2011			2010			2009
Federal statutory income tax rate		35.0	%		35.0	%		(35.0)%
Increase (decrease) in taxes resulting from:
State income taxes		3.1			(2.7	)		0.4
Non-U.S. tax rate differential and foreign tax credits		(9.4	)		(60.5	)		(13.5)
Unrecognized tax benefits and interest		1.2			17.5			(4.1)
Nondeductible healthcare claims		—			12.7			—
Change in status of subsidiaries		—			12.0			(3.6)
Research credit		(2.5	)		(5.4	)		(4.7)
Cash surrender value of life insurance		(1.5	)		(5.1	)		(1.9)
Valuation allowance on contingent receipts		—			(2.0	)		(7.3)
Goodwill impairment		—			—			18.5
Other, net		2.2			(7.9	)		0.2
Effective rate		28.1	%		(6.4	)%		(51.0)%

Unrecognized tax benefits and interest related to unrecognized tax benefits

(In millions)	December 31, 2011	January 1,   2011
Balance at beginning of year	$           285	$	294
Additions for tax positions related to current year	8		7
Additions for tax positions of prior years	8		8
Reductions for tax positions of prior years	(7)		(17)
Reductions for expiration of statute of limitations	—		(5)
Reductions for settlements with tax authorities	—		(2)
Balance at end of year	$           294	$	285

Deferred tax assets and liabilities

(In millions)	December 31, 2011			January 1,   2011
Deferred tax assets
Obligation for pension and postretirement benefits	$	635		$	692
Deferred compensation		196			203
Accrued expenses*		193			255
Valuation allowance on finance receivables held for sale		130			29
Loss carryforwards		74			66
Allowance for credit losses		68			141
Deferred income		52			59
Inventory		38			—
Other, net		172			177
Total deferred tax assets		1,558			1,622
Valuation allowance for deferred tax assets		(189	)		(200)
	$	1,369		$	1,422
Deferred tax liabilities
Leasing transactions	$	(285	)	$	(387)
Property, plant and equipment, principally depreciation		(145	)		(132)
Amortization of goodwill and other intangibles		(111	)		(135)
Inventory		—			(15)
Total deferred tax liabilities		(541	)		(669)
Net deferred tax asset	$	828		$	753

Breakdown between current and long-term net deferred tax assets

(In millions)	December 31, 2011	January 1,   2011
Current	$          288	$	290
Non-current	532		571
	820		861
Finance group’s net deferred tax asset (liability)	8		(108)
Net deferred tax asset	$          828	$	753

Operating loss and credit carryforward

(In millions)
Non-U.S. net operating loss with no expiration	$	98
Non-U.S. net operating loss expiring through 2031		45
State net operating loss and tax credits, net of tax benefits, expiring through 2027		36
U.S. federal tax credits beginning to expire in 2021		30