XML 61 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Tax | 9 Months Ended
--- | ---
Sep. 30, 2012
Tax | 8. Tax The effective tax rate for the three and nine months ended September 30, 2012 was 30.3% and 31.1%, respectively, compared to 32.3% and 32.1% for the same period in 2011. Compared to the U.S. statutory rate, the effective tax rate was positively impacted in the period by the effect of lower tax rates on income earned in foreign jurisdictions, reduced non-deductible expenses, the deduction in the U.S. for manufacturing activities and foreign exchange losses for tax reporting in Norway. The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate of 35% was as follows (in millions):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Federal income tax at U.S. federal statutory rate |  | $ | 306 |  |  | $ | 273 |  |  | $ | 922 |  |  | $ | 728 |
Foreign income tax rate differential |  |  | (29 | ) |  |  | (42 | ) |  |  | (109 | ) |  |  | (108 | )
State income tax, net of federal benefit |  |  | 7 |  |  |  | 6 |  |  |  | 24 |  |  |  | 17 |
Nondeductible expenses |  |  | — |  |  |  | 9 |  |  |  | 23 |  |  |  | 33 |
Tax benefit of manufacturing deduction |  |  | (12 | ) |  |  | (14 | ) |  |  | (30 | ) |  |  | (26 | )
Foreign dividends, net of foreign tax credits |  |  | 2 |  |  |  | 33 |  |  |  | 22 |  |  |  | 43 |
Tax impact of foreign exchange |  |  | (15 | ) |  |  | 13 |  |  |  | (33 | ) |  |  | 14 |
Tax rate change on temporary differences |  |  | — |  |  |  | (5 | ) |  |  | — |  |  |  | (18 | )
Other |  |  | 6 |  |  |  | (21 | ) |  |  | — |  |  |  | (16 | )
Provision for income taxes |  | $ | 265 |  |  | $ | 252 |  |  | $ | 819 |  |  | $ | 667 |
The balance of unrecognized tax benefits at September 30, 2012 was $127 million. The Company recognized no material changes in the balance of unrecognized tax benefits for the three and nine months ended September 30, 2012. The Company does not anticipate that its total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statutes of limitation within 12 months of this reporting date. The Company is subject to taxation in the U.S., various states and foreign jurisdictions. The Company has significant operations in the U.S., Canada, the U.K., the Netherlands and Norway. Tax years that remain subject to examination by major tax jurisdiction vary by legal entity, but are generally open in the U.S. for tax years after 2008 and outside the U.S. for tax years after 2005. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts have been classified as a component of income tax expense in the financial statements.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -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 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration