Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes [Text Block]

Note 8 Income taxes

The consolidated effective tax rate for the quarterended June 30, 2012 of 25% was lower than the prior year's rate of 30%. The consolidatedeffective tax rate for the year-to-date period ended June 30, 2012 of 28% was lower than the prior year's rate of 29%. The lower 2012 rate was primarily due to an elimination of a tax liability related to certain international earnings now considered indefinitely reinvested.

As of June 30, 2012, the Company classified $9 million related to uncertain 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 June 30, 2012; $52 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		5
	Reductions		-
Tax positions related to prior years:
	Additions		-
	Reductions		(1)
Settlements			(1)
June 30, 2012		$	69

For the year-to-date period ended June 30, 2012, the Company recognized an increase of $2 million of tax-related interest and penalties and had $17 million accrued at June 30, 2012.