v2.4.0.6
Income Taxes Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income before income taxes
For purposes of this note, non-United States operations include Puerto Rico.
 
Income before income taxes
 
2012
 
2011
 
2010
United States
$
138

 
$
375

 
$
114

Non-United States
1,113

 
1,178

 
922

Total income before income taxes
$
1,251

 
$
1,553

 
$
1,036
Income tax expense benefit
 
Income tax expense (benefit)
 
2012
 
2011
 
2010
Current
 
 
 
 
 
United States
 
 
 
 
 
Federal
$
1

 
$
85

 
$
(2
)
State and local
5

 
2

 
1

Non-United States
130

 
186

 
107

Total current income tax expense
136

 
273

 
106

 
 
 
 
 
 
Deferred
 
 
 
 
 
United States
 
 
 
 
 
Federal
39

 
(2
)
 
95

State and local
2

 
8

 
(15
)
Non-United States
(146
)
 
(78
)
 
(87
)
Total deferred income tax benefit
(105
)
 
(72
)
 
(7
)
Total income tax expense
$
31

 
$
201

 
$
99
Reconciliations of income taxes from the United States federal statutory rate
Reconciliations of income taxes from the United States federal statutory rate of 35% to the consolidated effective income tax rate follow:
 
2012
 
2011
 
2010
Income taxes at the United States federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
 
 
 
 
 
 
United States operations

 

 

State and local income taxes
0.6
 %
 
0.2
 %
 
(0.1
)%
Deductible dividends
(0.7
)%
 
(0.5
)%
 
(0.6
)%
Deductible interest
(0.8
)%
 
(0.5
)%
 
(0.8
)%
Credit for research activities
—
 %
 
(1.0
)%
 
(1.4
)%
Impact of Health Care Reform and Education Reconciliation Act
   and pre-funding on taxation associated with Medicare Part D
—
 %
 
(0.9
)%
 
2.2
 %
Other-net
2.7
 %
 
0.5
 %
 
1.4
 %
 
 
 
 
 
 
Non-United States operations

 

 

United States foreign tax credit
(12.4
)%
 
(2.3
)%
 
(6.4
)%
Non-United States operations (earnings taxed at other than
   the United States tax rate)
(14.9
)%
 
(15.5
)%
 
(13.9
)%
 
 
 
 
 
 
Worldwide operations

 

 

Adjustments to tax liabilities
(5.7
)%
 
(0.8
)%
 
(1.2
)%
Adjustments to valuation allowances
(1.3
)%
 
(1.3
)%
 
(4.7
)%
Effective income tax expense rate
2.5
 %
 
12.9
 %
 
9.5
 %
Worldwide income tax payments
Worldwide income tax payments follow:
2012
$
254

2011
191

2010
141
Components of current and long-term deferred income taxes
Components of current and long-term deferred income taxes follow:
 
2012
 
2011
 
Current
assets and
liabilities
 
Long-term
assets and
liabilities
 
Current
assets and
liabilities
 
Long-term
assets and
liabilities
Accruals and other adjustments
 
 
 
 
 
 
 
Employee benefits
$
92

 
$
852

 
$
114

 
$
778

Depreciation and amortization
(100
)
 
(2,356
)
 
(2
)
 
(498
)
Other accruals and adjustments
476

 
290

 
293

 
77

Other items
—

 
145

 
—

 
(4
)
United States federal income tax loss carryforwards
—

 
6

 
—

 
7

United States federal income tax credit carryforwards
—

 
156

 
—

 
251

United States state and local tax loss carryforwards and
   tax credit carryforwards
—

 
71

 
—

 
65

Non-United States tax loss carryforwards
—

 
1,591

 
—

 
417

Non-United States income tax credit carryforwards
—

 
67

 
—

 
95

Valuation allowance for income tax loss and income tax
   credit carryforwards
(61
)
 
(1,521
)
 
—

 
(441
)
Other valuation allowances
(7
)
 
(71
)
 
(7
)
 
(55
)
Total deferred income taxes
$
400

 
$
(770
)
 
$
398

 
$
692
United States federal income tax loss carryforwards and income tax credit carryforwards and expiration dates
These carryforwards and their expiration dates are summarized below:
 
2013
through
2017
 
2018
through
2022
 
2023
through
2027
 
2028
through
2032
 
Not
subject to
expiration
 
 
Valuation
allowance
United States federal income tax loss carryforwards
$
—

 
$
—

 
$
15

 
$
2

 
$
—

 
$
—

United States federal deferred income tax assets
   for income tax loss carryforwards
—

 
—

 
5

 
1

 
—

 
(5
)
United States federal income tax credit carryforwards
—

 
51

 
—

 
68

 
37

 
(17
)
United States state and local tax loss carryforwards and tax credit carryforwards and expiration dates
These carryforwards and their expiration dates are summarized below:
 
2013
through
2017
 
2018
through
2022
 
2023
through
2027
 
2028
through
2032
 
Not
subject to
expiration
 
 
Valuation
allowance
United States state and local deferred income tax
   assets for income tax carryforwards - net of federal
   tax effect
$
6

 
$
12

 
$
15

 
$
7

 
$
—

 
$
(16
)
United States state and local income tax credit
   carryforwards - net of federal tax effect
7

 
10

 
6

 
4

 
4

 
(15
)
Non-United States subsidiaries tax loss carryforwards and income tax credit carryforwards and expiration dates
These carryforwards and their expiration dates are summarized below:
 
2013
through
2017
 
2018
through
2022
 
2023
through
2027
 
2028
through
2032
 
Not
subject to
expiration
 
 
Valuation
allowance
Non-United States income tax loss carryforwards
$
348

 
$
148

 
$
32

 
$
27

 
$
6,982

 
$
—

Non-United States deferred income tax
   assets for income tax loss carryforwards
92

 
38

 
9

 
8

 
1,444

 
(1,509
)
Non-United States income tax credit carryforwards
47

 
14

 
1

 
—

 
5

 
(7
)
Summary of gross unrecognized income tax benefits
A summary of gross unrecognized income tax benefits follows:
 
2012
 
2011
 
2010
Balance at January 1
$
236

 
$
224

 
$
197

Increases and decreases as a result of positions taken during prior years
 
 
 
 
 
Transfers to valuation allowances
—

 
—

 
(2
)
Other increases
1

 
3

 
7

Other decreases, including currency translation
—

 
(14
)
 
(31
)
Balances related to acquired businesses
13

 
2

 
34

Increases as a result of positions taken during the current year
36

 
31

 
23

Decreases relating to settlements with tax authorities
—

 
(2
)
 
—

Decreases as a result of a lapse of the applicable statute of limitations
(6
)
 
(8
)
 
(4
)
Balance at December 31
$
280

 
$
236

 
$
224