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v2.3.0.11

Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2011
Income Taxes |
Components of earnings before income taxes |
|  | 2011 |  | 2010 |  | 2009 |
|  | (In millions) |
United States |  | $ | 2,035 |  | $ | 1,453 |  | $ | 1,332 |
Foreign |  | 980 |  | 1,132 |  | 1,168 |
|  | $ | 3,015 |  | $ | 2,585 |  | $ | 2,500 |
Significant components of income taxes |
|  | 2011 |  | 2010 |  | 2009 |
|  | (In millions) |
Current |  |  |  |  |  |  |
Federal |  | $ | 251 |  | $ | 422 |  | $ | 626 |
State |  | 10 |  | 18 |  | 28 |
Foreign |  | 222 |  | 195 |  | 139 |
Deferred |  |  |  |  |  |  |
Federal |  | 483 |  | 107 |  | (4 | )
State |  | 43 |  | (4 | ) | 10 |
Foreign |  | (12 | ) | (72 | ) | 13 |
|  | $ | 997 |  | $ | 666 |  | $ | 812 |
Significant components of deferred tax liabilities and assets |
|  | 2011 |  | 2010 |
|  | (In millions) |
Deferred tax liabilities |  |  |  |  |
Property, plant, and equipment |  | $ | 1,016 |  | $ | 677 |
Equity in earnings of affiliates |  | 255 |  | 187 |
Inventories |  | 324 |  | 33 |
Other |  | 104 |  | 143 |
|  | $ | 1,699 |  | $ | 1,040 |
Deferred tax assets |  |  |  |  |
Pension and postretirement benefits |  | $ | 307 |  | $ | 358 |
Stock compensation |  | 58 |  | 59 |
Foreign tax credit carryforwards |  | 46 |  | 41 |
Foreign tax loss carryforwards |  | 220 |  | 135 |
State tax attributes |  | 57 |  | 50 |
Other |  | 129 |  | 120 |
Gross deferred tax assets |  | 817 |  | 763 |
Valuation allowances |  | (95 | ) | (71 | )
Net deferred tax assets |  | $ | 722 |  | $ | 692 |
Net deferred tax liabilities |  | $ | 977 |  | $ | 348 |
Current deferred tax assets (liabilities) included in other assets (accrued expenses) |  | (118 | ) | 91 |
Non-current deferred tax liabilities |  | $ | 859 |  | $ | 439 |
Reconciliation of the statutory federal income tax rate to the Company's effective tax rate on earnings |
|  | 2011 |  | 2010 |  | 2009 |
Statutory rate |  | 35.0 | % | 35.0 | % | 35.0 | %
State income taxes, net of federal tax benefit |  | 1.1 |  | 0.3 |  | 1.0 |
Foreign earnings taxed at rates other than the U.S. statutory rate |  | (4.9 | ) | (8.2 | ) | (8.7 | )
Foreign currency remeasurement |  | 0.9 |  | (0.7 | ) | (0.5 | )
WIHL Liquidation |  | — |  | 0.5 |  | 6.6 |
Other |  | 1.0 |  | (1.1 | ) | (0.9 | )
Effective rate |  | 33.1 | % | 25.8 | % | 32.5 | %
Unrecognized tax benefits |
|  | Unrecognized Tax Benefits |
|  | 2011 |  | 2010 |
|  | (in millions) |
Beginning balance |  | $ | 84 |  | $ | 54 |
Additions related to current year’s tax positions |  | 4 |  | 31 |
Additions related to prior years’ tax positions |  | — |  | 8 |
Reductions related to prior years’ tax positions |  | (7 | ) | (7 | )
Settlements with tax authorities |  | (2 | ) | (2 | )
Ending balance |  | $ | 79 |  | $ | 84 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Topic 740 -SubTopic 10 -Publisher FASB -Number -Article -Subparagraph -Name Accounting Standards Codification -Paragraph 9 -Section 50 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Topic 740 -SubTopic 10 -Publisher FASB -Number -Article -Subparagraph -Name Accounting Standards Codification -Paragraph 2 -Section 50 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Topic 740 -SubTopic 10 -Publisher FASB -Number -Article -Subparagraph -Name Accounting Standards Codification -Paragraph 12 -Section 50 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
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