Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

Components of income tax [Table Text Block]

Components of income taxes excluding discontinued operations, cumulative effects of changes in accounting principles, other comprehensive income, and equity in net results of affiliated companies accounted for after-tax, are as follows:

	2011			2010			2009
Income/(Loss) before income taxes, excluding equity in net results of affiliated companies accounted for after-tax (in millions)
U.S.	$	6,043		$	4,057		$	1,724
Non-U.S.	2,138			2,554			680
Total	$	8,181		$	6,611		$	2,404
Provision for/(Benefit from) income taxes (in millions)
Current
Federal	$	(4	)	$	(69	)	$	(274	)
Non-U.S.	298			289			269
State and local	(24		)	(5		)	7
Total current	270			215			2
Deferred
Federal	(9,785		)	—			(100		)
Non-U.S.	(1,590		)	292			44
State and local	(436		)	85			(59		)
Total deferred	(11,811		)	377			(115		)
Total	$	(11,541	)	$	592		$	(113	)
Reconciliation of effective tax rate
U.S. statutory rate	35.0		%	35.0		%	35.0		%
Non-U.S. tax rates under U.S. rates	(1.5		)	(0.1		)	(0.6		)
State and local income taxes	1.1			1.5			(1.9		)
General business credits	(1.9		)	(1.8		)	(6.2		)
Dispositions and restructurings	6.8			(9.5		)	(4.3		)
U.S. tax on non-U.S. earnings	(0.8		)	0.1			0.6
Prior year settlements and claims	(0.2		)	(10.0		)	10.4
Tax-related interest	(0.9		)	(0.7		)	(1.5		)
Tax-exempt income	(3.9		)	(4.7		)	(10.4		)
Other	(2.5		)	0.2			0.2
Valuation allowances	(172.3		)	(1.0		)	(26.0		)
Effective rate	(141.1		)%	9.0		%	(4.7		)%

Components of deferred tax assets and liabilities [Table Text Block]

The components of deferred tax assets and liabilities at December 31 were as follows (in millions):

	2011			2010
Deferred tax assets
Employee benefit plans	$	8,189		$	6,332
Net operating loss carryforwards	3,163			4,124
Tax credit carryforwards	4,534			4,546
Research expenditures	2,297			2,336
Dealer and customer allowances and claims	1,731			1,428
Other foreign deferred tax assets	694			1,513
Allowance for credit losses	194			252
All other	1,483			2,839
Total gross deferred tax assets	22,285			23,370
Less: valuation allowances	(1,545		)	(15,664		)
Total net deferred tax assets	20,740			7,706
Deferred tax liabilities
Leasing transactions	932			928
Deferred income	2,098			2,101
Depreciation and amortization (excluding leasing transactions)	1,659			1,146
Finance receivables	551			716
Other foreign deferred tax liabilities	360			334
All other	711			1,613
Total deferred tax liabilities	6,311			6,838
Net deferred tax assets/(liabilities)	$	14,429		$	868

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years listed (in millions):

	2011			2010
Balance at January 1	$	1,063		$	1,173
Increase – tax positions in prior periods	1,045			138
Increase – tax positions in current period	59			52
Decrease – tax positions in prior periods	(134		)	(141		)
Settlements	(186		)	(109		)
Lapse of statute of limitations	(21		)	(29		)
Foreign currency translation adjustment	(8		)	(21		)
Balance at December 31	$	1,818		$	1,063