Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Income Taxes [Text Block]

Note 8 Income taxes

The consolidated effective tax rate for the quarter ended March 31, 2012, of 30% was higher than the prior year's rate of 28%. The first quarter of 2011 benefited from an international legal restructuring.

As of March 31, 2012, the Company classified $14 million of unrecognized tax positions as a net current liability, representing several income tax positions under examination in various jurisdictions. Management's estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months consists of the current liability balance, expected to be settled within one year, offset by $8 million of projected additions. Management is currently unaware of any issues under review that could result in significant additional payments, accruals or other material deviation in this estimate.

Following is a reconciliation of the Company's total gross unrecognized tax benefits for the quarter ended March 31, 2012; $51 million of this total represents the amount that, if recognized, would affect the Company's effective income tax rate in future periods.

(millions)
December 31, 2011		$	66
Tax positions related to current year:
	Additions		2
	Reductions		-
Tax positions related to prior years:
	Additions		-
	Reductions		-
Settlements			-
March 31, 2012		$	68

For the quarter ended March 31, 2012, the Company recognized an increase of $1 million of tax-related interest and penalties and had $17 million accrued at March 31, 2012.