Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Before Income Taxes

Income Before Income Taxes

(Millions)	2011		2010		2009
United States	$	2,516	$	2,778	$	2,338
International	3,515		2,977		2,294
Total	$	6,031	$	5,755	$	4,632

Provision for Income Taxes

Provision for Income Taxes

(Millions)	2011		2010			2009
Currently payable
Federal	$	431	$	837		$	88
State	51		73			13
International	861		796			586
Deferred
Federal	181		55			489
State	12		43			56
International	138		(212		)	156
Total	$	1,674	$	1,592		$	1,388

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities

(Millions)	2011			2010
Deferred tax assets:
Accruals not currently deductible
Employee benefit costs	$	96		$	99
Product and other claims	155			148
Miscellaneous accruals	173			175
Pension costs	1,183			724
Stock-based compensation	483			501
Net operating/capital loss carryforwards	392			437
Foreign tax credits	286			281
Other - net	49			46
Gross deferred tax assets	2,817			2,411
Valuation allowance	(82		)	(128		)
Total deferred tax assets	$	2,735		$	2,283
Deferred tax liabilities:
Product and other insurance receivables	$	(63	)	$	(59	)
Accelerated depreciation	(745		)	(695		)
Intangible amortization	(798		)	(823		)
Total deferred tax liabilities	(1,606		)	(1,577		)
Net deferred tax assets	$	1,129		$	706

Reconciliation of Effective Income Tax Rate

Reconciliation of Effective Income Tax Rate

	2011		2010		2009
Statutory U.S. tax rate	35.0	%	35.0	%	35.0	%
State income taxes — net of federal benefit	0.7		1.2		1.0
International income taxes — net	(4.6	)	(7.1	)	(5.3	)
U.S. research and development credit	(0.5	)	(0.2	)	(0.3	)
Reserves for tax contingencies	(1.2	)	(0.5	)	0.8
Medicare Modernization Act, one-time charge	—		1.5		—
Domestic Manufacturer’s deduction	(1.5	)	(1.4	)	(0.5	)
All other — net	(0.1	)	(0.8	)	(0.7	)
Effective worldwide tax rate	27.8	%	27.7	%	30.0	%

Reconciliation of Federal, State and Foreign Tax Gross Unrecognized Tax Benefits

Federal, State and Foreign Tax

(Millions)	2011			2010			2009
Gross UTB Balance at January 1	$	622		$	618		$	557
Additions based on tax positions related to the current year	92			128			121
Additions for tax positions of prior years	69			142			164
Reductions for tax positions of prior years	(123		)	(161		)	(177		)
Settlements	9			(51		)	—
Reductions due to lapse of applicable statute of limitations	(75		)	(54		)	(47		)
Gross UTB Balance at December 31	$	594		$	622		$	618
Net UTB impacting the effective tax rate at December 31	$	295		$	394		$	425