Income Taxes

3 Months Ended

Apr. 01, 2012

Income Taxes [Abstract]

Income Taxes

I. INCOME TAXES

Deferred Tax Assets. Our net deferred tax asset was included on the Consolidated Balance Sheets as follows:

	December 31, 2011			April 1, 2012
Current deferred tax asset	$	269		$	163
Current deferred tax liability		(131	)		(95	)
Noncurrent deferred tax asset		310			358
Noncurrent deferred tax liability		(170	)		(201	)
Net deferred tax asset	$	278		$	225

Tax Uncertainties. We periodically assess our liabilities and contingencies for all periods open to examination by tax authorities based on the latest available information. Where we believe there is more than a 50 percent chance that our tax position will not be sustained, we record our best estimate of the resulting tax liability, including interest, in the Consolidated Financial Statements. We include any interest or penalties incurred in connection with income taxes as part of income tax expense.

In the first quarter of 2012, we reached agreement with the Internal Revenue Service (IRS) on the examination of our federal income tax return for 2010. The resolution of this audit had no material impact on our results of operations, financial condition, cash flows or effective tax rate. With the completion of this audit, the IRS has examined all of our consolidated federal income tax returns through 2010.

We participate in the IRS's Compliance Assurance Process, a real-time audit of our tax return. We have recorded liabilities for tax uncertainties for the years that remain open to review. We do not expect the resolution of tax matters for these years to have a material impact on our results of operations, financial condition, cash flows or effective tax rate.

Based on all known facts and circumstances and current tax law, we believe the total amount of unrecognized tax benefits on April 1, 2012, is not material to our results of operations, financial condition or cash flows, and if recognized, would not have a material impact on our effective tax rate. We further believe that there are no tax positions for which it is reasonably possible that the unrecognized tax benefits will significantly vary over the next 12 months, producing, individually or in the aggregate, a material effect on our results of operations, financial condition or cash flows.