Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Provision for Income Taxes

(In millions)	2012		2011		2010
Current tax expense (benefit)	$	1,368	$	775	$	(2,292)
Deferred tax expense (benefit) from temporary differences		(877)		124		1,307
Total	$	491	$	899	$	(985)

Unrecognized tax benefits

December 31 (In millions)	2012		2011
Unrecognized tax benefits	$	3,106	$	2,932
Portion that, if recognized, would reduce tax expense and effective tax rate(a)		2,253		2,209
Accrued interest on unrecognized tax benefits		559		579
Accrued penalties on unrecognized tax benefits		101		65
Reasonably possible reduction to the balance of unrecognized
tax benefits in succeeding 12 months		0-400		0-600
Portion that, if recognized, would reduce tax expense and effective tax rate(a)		0-350		0-150

• Some portion of such reduction might be reported as discontinued operations.

Reconciliation of Unrecognized Tax Benefits

(In millions)	2012		2011
Balance at January 1	$	2,932	$	3,904
Additions for tax positions of the current year		181		124
Reductions for tax positions of the current year		(9)		(13)
Additions for tax positions of prior years		522		423
Reductions for tax positions of prior years		(377)		(1,471)
Settlements with tax authorities		(141)		(30)
Expiration of the statute of limitations		(2)		(5)
Balance at December 31	$	3,106	$	2,932

Reconciliation of Income Tax Rate

	2012			2011			2010
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
Increase (reduction) in rate resulting from
Tax on global activities including exports		(18.9)			(15.0)			(54.8)
U.S. business credits(a)		(4.3)			(4.7)			(13.5)
Business Property disposition		(4.2)			-			-
All other - net		(1.4)			(3.5)			(12.5)
		(28.8)			(23.2)			(80.8)
Actual income tax rate		6.2	%		11.8	%		(45.8)	%

• U.S. general business credits, primarily the credit for energy produced from renewable sources, the advanced energy project credit and the low-income housing credit.

Schedule of Deferred Tax Assets and Liabilities

December 31 (In millions)	2012		2011
Assets
Allowance for losses	$	(1,964)	$	(2,949)
Non-U.S. loss carryforwards(a)		(3,115)		(2,861)
Investment in global subsidiaries		(1,451)		-
Net unrealized losses on securities		-		(64)
Cash flow hedges		-		(104)
Other - net		(5,655)		(4,941)
Total deferred income tax assets		(12,185)		(10,919)
Liabilities
Financing leases		4,506		6,718
Operating leases		5,939		5,030
Intangible assets		1,657		1,689
Investment in global subsidiaries		-		85
Net unrealized gains on securities		321		-
Cash flow hedges		119		-
Other - net		5,514		4,449
Total deferred income tax liabilities		18,056		17,971
Net deferred income tax liability	$	5,871	$	7,052

(a)Net of valuation allowances of $628 million and $613 million for 2012 and 2011, respectively. Of the net deferred tax asset as of December 31, 2012, of $3,115 million, $76 million relates to net operating loss carryforwards that expire in various years ending from December 31, 2013, through December 31, 2015; $178 million relates to net operating losses that expire in various years ending from December 31, 2016 through December 31, 2027 and $2,861 million relates to net operating loss carryforwards that may be carried forward indefinitely.