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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2010

Income Tax Expense (Benefit) [Abstract]

Schedule of Domestic and Foreign Components of Income from Continuing Operations Before Income Taxes



Domestic and Foreign Components of Income from Continuing Operations Before Income Taxes
In millions	2010			2009			2008
Domestic	$	(821	)	$	(290	)	$	(1,290	)
Foreign	3,623			759			2,567
Total	$	2,802		$	469		$	1,277

Reconciliation to U.S. Statutory Rate



Reconciliation to U.S. Statutory Rate
In millions	2010			2009			2008
Taxes at U.S. statutory rate	$	981		$	164		$	447
Equity earnings effect	(272		)	(266		)	(309		)
Foreign income taxed at rates other than 35% (1)	(262		)	(121		)	261
U.S. tax effect of foreign earnings and dividends	118			210			164
Goodwill impairment losses	—			3			75
Change in valuation allowances	(34		)	9			60
Unrecognized tax benefits	(52		)	21			31
Federal tax accrual adjustments	(13		)	(119		)	29
Other – net	15			2			(107		)
Total tax provision (credit)	$	481		$	(97	)	$	651
Effective tax rate	17.2		%	(20.7		)%	51.0		%

(1) Includes the tax provision for statutory taxable income in foreign jurisdictions for which there is no corresponding amount in “Income from Continuing Operations Before Income Taxes.”

Schedule of Provision (Credit) for Income Taxes



Provision (Credit) for Income Taxes
	2010									2009								2008
In millions	Current			Deferred			Total			Current		Deferred			Total			Current		Deferred			Total
Federal	$	(576	)	$	445		$	(131	)	$	65	$	(538	)	$	(473	)	$	3	$	(541	)	$	(538	)
State and local	(36		)	(21		)	(57		)	27		(15		)	12			6		(17		)	(11		)
Foreign	765			(96		)	669			463		(99		)	364			918		282			1,200
Total	$	153		$	328		$	481		$	555	$	(652	)	$	(97	)	$	927	$	(276	)	$	651

Schedule of Deferred Tax Balances



Deferred Tax Balances at December 31	2010					2009
In millions	Deferred Tax Assets (1)			Deferred Tax Liabilities		Deferred Tax Assets (1)			Deferred Tax Liabilities (2)
Property	$	629		$	3,084	$	20		$	2,698
Tax loss and credit carryforwards	1,957			—		2,414			—
Postretirement benefit obligations	3,282			1,099		3,097			1,039
Other accruals and reserves	2,101			545		1,963			227
Intangibles	182			1,615		40			1,909
Inventory	149			277		185			182
Long-term debt	3			393		8			65
Investments	174			136		103			21
Other – net	986			342		460			180
Subtotal	$	9,463		$	7,491	$	8,290		$	6,321
Valuation allowances	(682		)	—		(721		)	—
Total	$	8,781		$	7,491	$	7,569		$	6,321

(1) Included in current deferred tax assets are prepaid tax assets totaling $100 million in 2010 and $151 million in 2009.

(2) The Company assumed $2,875 million of deferred tax liabilities with the April 1, 2009 acquisition of Rohm and Haas; see Note D.

Schedule of Total Gross Unrecognized Tax Benefits



Total Gross Unrecognized Tax Benefits
In millions	2010			2009			2008
Balance at January 1	$	650		$	736		$	892
Increases related to positions taken on items from prior years	8			57			41
Decreases related to positions taken on items from prior years	(33		)	(25		)	(191		)
Increases related to positions taken in the current year	24			71			34
Settlement of uncertain tax positions with tax authorities	(300		)	(172		)	(29		)
Decreases due to expiration of statutes of limitations	(30		)	(17		)	(11		)
Balance at December 31	$	319		$	650		$	736

Schedule of Tax Years Subject to Examination by Major Tax Jurisdiction



Tax Years Subject to Examination by Major Tax Jurisdiction at December 31
	Earliest Open Year
Jurisdiction	2010	2009
Argentina	2004	2003
Brazil	2005	2004
Canada	2006	2002
France	2008	2007
Germany	2002	2002
Italy	2005	2004
The Netherlands	2009	2008
Spain	2004	2004
Switzerland	2008	2008
United Kingdom	2008	2007
United States:
Federal income tax	2004	2004
State and local income tax	1996	1989

- 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.

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- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

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