Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income (loss) from continuing operations before income taxes



	Income (loss) before income taxes
	2011		2010		2009
United States	$	375	$	114	$	(298	)
Non-United States	1,178		922		601
Total income before income taxes	$	1,553	$	1,036	$	303

Income tax expense benefit



	Income tax expense (benefit)
	2011			2010			2009
Current
United States
Federal	$	85		$	(2	)	$	40
State and local	2			1			5
Non-United States	186			107			69
Total current income tax expense	273			106			114

Deferred
United States
Federal	(2		)	95			(174		)
State and local	8			(15		)	(4		)
Non-United States	(78		)	(87		)	(18		)
Total deferred income tax benefit	(72		)	(7		)	(196		)
Total income tax expense (benefit)	$	201		$	99		$	(82	)

Reconciliations of income taxes from the United States federal statutory rate

Reconciliations of income taxes from the United States federal statutory rate of 35% to the consolidated effective income tax rate follow:



	2011		2010		2009
Income taxes at the United States federal statutory rate	35.0	%	35.0	%	35.0	%

United States operations
State and local income taxes	0.2	%	(0.1	)%	0.4	%
Deductible dividends	(0.5	)%	(0.6	)%	(2.1	)%
Deductible interest	(0.5	)%	(0.8	)%	(2.3	)%
Credit for research activities	(1.0	)%	(1.4	)%	(3.9	)%
Impact of Health Care Reform and Education Reconciliation Act and pre-funding on taxation associated with Medicare Part D	(0.9	)%	2.2	%	0.0	%
Other-net	0.5	%	1.4	%	5.0	%

Non-United States operations
Foreign tax credit	(2.3	)%	(6.4	)%	(2.5	)%
Non-United States operations (earnings taxed at other than the United States tax rate)	(15.5	)%	(13.9	)%	(52.6	)%

Worldwide operations
Adjustments to tax liabilities	(0.8	)%	(1.2	)%	(11.9	)%
Adjustments to valuation allowances	(1.3	)%	(4.7	)%	7.7	%
Effective income tax expense (benefit) rate	12.9	%	9.5	%	(27.2	)%

Worldwide income tax payments

Worldwide income tax payments follow:



2011	$	191
2010	141
2009	124

Components of current and long-term deferred income taxes

Components of current and long-term deferred income taxes follow:



	2011						2010
	Current assets			Long-term assets and liabilities			Current assets			Long-term assets and liabilities
Accruals and other adjustments
Employee benefits	$	114		$	778		$	94		$	681
Depreciation and amortization	(2		)	(498		)	(1		)	(567		)
Other accruals and adjustments	293			77			224			90
Other items	—			(4		)	—			(6		)
United States federal income tax loss carryforwards	—			7			—			5
United States federal income tax credit carryforwards	—			251			—			253
United States state and local tax loss carryforwards and tax credit carryforwards	—			65			—			74
Non-United States tax loss carryforwards	—			417			—			360
Non-United States income tax credit carryforwards	—			95			—			72
Valuation allowance for income tax loss and income tax credit carryforwards	—			(441		)	—			(421		)
Other valuation allowances	(7		)	(55		)	(14		)	(27		)
Total deferred income taxes	$	398		$	692		$	303		$	514

United States federal income tax loss carryforwards and income tax credit carryforwards and expiration dates

At the end of 2011, United States federal income tax loss carryforwards and income tax credit carryforwards were available to reduce future federal income tax liabilities. These carryforwards and their expiration dates are summarized below:



	2012 through 2016		2017 through 2021		2022 through 2026		2027 through 2031		Not subject to expiration		Valuation allowance
United States federal income tax loss carryforwards	$	3	$	—	$	14	$	3	$	—	$	—
United States federal deferred income tax assets for income tax loss carryforwards	1		—		5		1		—		(6		)
United States federal income tax credit carryforwards	—		93		20		86		52		(17		)

United States state and local tax loss carryforwards and tax credit carryforwards and expiration dates

United States state and local tax loss carryforwards and tax credit carryforwards with a future tax benefit are also available at the end of 2011. These carryforwards and their expiration dates are summarized below:



	2012 through 2016		2017 through 2021		2022 through 2026		2027 through 2031		Not subject to expiration		Valuation allowance
United States state and local income tax loss carryforwards - net of federal tax effect	$	6	$	4	$	11	$	8	$	—	$	(8	)
United States state and local income tax credit carryforwards - net of federal tax effect	11		9		5		5		6		(15		)

Non-United States subsidiaries tax loss carryforwards and income tax credit carryforwards and expiration dates

hese carryforwards and their expiration dates are summarized below:



	2012 through 2016		2017 through 2021		2022 through 2026		2027 through 2031		Not subject to expiration		Valuation allowance
Non-United States income tax loss carryforwards	$	188	$	140	$	10	$	48	$	1,143	$	—
Non-United States deferred income tax assets for income tax loss carryforwards	49		36		3		13		316		(367		)
Non-United States income tax credit carryforwards	46		33		—		9		7		(8		)

Summary of gross unrecognized income tax benefits

A summary of gross unrecognized income tax benefits follows:



	2011			2010			2009
Balance at January 1	$	224		$	197		$	139
Increases and decreases as a result of positions taken during prior years
Transfers to valuation allowances	—			(2		)	(1		)
Other increases	3			7			37
Other decreases, including foreign currency translation	(14		)	(31		)	(4		)
Balances related to acquired businesses	2			34			5
Increases as a result of positions taken during the current year	31			23			28
Decreases relating to settlements with tax authorities	(2		)	—			(4		)
Decreases as a result of a lapse of the applicable statute of limitations	(8		)	(4		)	(3		)
Balance at December 31	$	236		$	224		$	197