Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Effective Tax Rates

Effective tax rates are analyzed as follows.

	2012					2011
	(dollars are in millions)
Three Months Ended September 30:
Tax expense (benefit) at the U.S. Federal statutory income tax rate	$	(101	)	(35.0	)%	$	(708	)	(35.0	)%
Increase (decrease) in rate resulting from:
State and local taxes, net of Federal benefit		7		2.4			1		-
Adjustment to current liability account		(6	)	(2.0	)		-		-
Change in valuation allowance reserves		5		1.7			(3	)	(.1	)
Deferred tax validation		8		2.8			9		.4
Change in uncertain tax position reserves		(12	)	(4.1	)		28		1.4
Foreign tax credits		-		-			(12	)	(.6	)
Other		1		.4			(4	)	(.1	)
Total income tax expense (benefit)	$	(98	)	(33.8	)%	$	(689	)	(34.0	)%
Nine Months Ended September 30:
Tax expense (benefit) at the U.S. Federal statutory income tax rate	$	(1,237	)	(35.0	)%	$	(1,011	)	(35.0	)%
Increase (decrease) in rate resulting from:
State and local taxes, net of Federal benefit		(5	)	(.1	)		1		-
Adjustment to current liability account		(37	)	(1.0	)		-		-
Change in tax rate used to value deferred taxes		(7	)	(.2	)		-		-
Change in valuation allowance reserves		16		.4			(144	)	(5.0	)
Deferred tax validation		(34	)	(1.0	)		12		.4
Change in uncertain tax position reserves		(19	)	(.5	)		(2	)	(.1	)
Foreign tax credits		-		-			(12	)	(.4	)
Other		(2	)	(.1	)		(5	)	(.1	)
Total income tax expense (benefit)	$	(1,325	)	(37.5	)%	$	(1,161	)	(40.2	)%