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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2012
Domestic and Foreign Components of Income Before Income Taxes | The domestic and foreign components of income before income taxes were as follows (in millions):
|  | Years Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Domestic |  | $ | 1,812 |  |  | $ | 1,282 |  |  | $ | 727 |
Foreign |  |  | 1,693 |  |  |  | 1,640 |  |  |  | 1,670 |
|  | $ | 3,505 |  |  | $ | 2,922 |  |  | $ | 2,397 |
Components of Provision for Income Taxes | The components of the provision for income taxes consisted of (in millions):
|  | Years Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 700 |  |  | $ | 484 |  |  | $ | 421 |
State |  |  | 48 |  |  |  | 37 |  |  |  | 34 |
Foreign |  |  | 371 |  |  |  | 768 |  |  |  | 448 |
Total current income tax provision |  |  | 1,119 |  |  |  | 1,289 |  |  |  | 903 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (151 | ) |  |  | (28 | ) |  |  | (260 | )
State |  |  | — |  |  |  | (3 | ) |  |  | (8 | )
Foreign |  |  | 54 |  |  |  | (321 | ) |  |  | 103 |
Total deferred income tax provision |  |  | (97 | ) |  |  | (352 | ) |  |  | (165 | )
Total income tax provision |  | $ | 1,022 |  |  | $ | 937 |  |  | $ | 738 |
Difference Between Effective Tax Rate | The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows (in millions):
|  | Years Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Federal income tax at U.S. statutory rate |  | $ | 1,227 |  |  | $ | 1,023 |  |  | $ | 839 |
Foreign income tax rate differential |  |  | (154 | ) |  |  | (152 | ) |  |  | (117 | )
State income tax, net of federal benefit |  |  | 31 |  |  |  | 22 |  |  |  | 17 |
Nondeductible expenses |  |  | 30 |  |  |  | 42 |  |  |  | 40 |
Tax benefit of manufacturing deduction |  |  | (29 | ) |  |  | (37 | ) |  |  | (19 | )
Foreign dividends, net of foreign tax credits |  |  | (115 | ) |  |  | 9 |  |  |  | 15 |
Change in deferred tax valuation allowance |  |  | 80 |  |  |  | (18 | ) |  |  | — |
Other |  |  | (48 | ) |  |  | 48 |  |  |  | (37 | )
Total income tax provision |  | $ | 1,022 |  |  | $ | 937 |  |  | $ | 738 |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows (in millions):
|  | December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Allowances and operating liabilities |  | $ | 368 |  |  | $ | 331 |  |  | $ | 344 |
Net operating loss carryforwards |  |  | 25 |  |  |  | 14 |  |  |  | 10 |
Postretirement benefits |  |  | 54 |  |  |  | 14 |  |  |  | 17 |
Foreign tax credit carryforwards |  |  | 259 |  |  |  | 106 |  |  |  | 220 |
Other |  |  | 149 |  |  |  | 151 |  |  |  | 75 |
|  |  | 855 |  |  |  | 616 |  |  |  | 666 |
Valuation allowance for deferred tax assets |  |  | (93 | ) |  |  | (13 | ) |  |  | (9 | )
Total deferred tax assets |  |  | 762 |  |  |  | 603 |  |  |  | 657 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Tax over book depreciation |  |  | 268 |  |  |  | 204 |  |  |  | 213 |
Intangible assets |  |  | 1,448 |  |  |  | 1,398 |  |  |  | 1,307 |
Deferred income |  |  | 314 |  |  |  | 226 |  |  |  | 456 |
Accrued U.S. tax on unremitted earnings |  |  | 92 |  |  |  | 70 |  |  |  | 149 |
Other |  |  | 208 |  |  |  | 168 |  |  |  | 211 |
Total deferred tax liabilities |  |  | 2,330 |  |  |  | 2,066 |  |  |  | 2,336 |
Net deferred tax liability |  | $ | 1,568 |  |  | $ | 1,463 |  |  | $ | 1,679 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
|  | 2012 |  |  | 2011 |  |  | 2010 |
Unrecognized tax benefit at beginning of year |  | $ | 131 |  |  | $ | 118 |  |  | $ | 58 |
Additions based on tax positions related to the current year |  |  | 2 |  |  |  | 9 |  |  |  | 1 |
Additions for tax positions of prior years |  |  | — |  |  |  | 13 |  |  |  | 82 |
Reductions for tax positions of prior years |  |  | — |  |  |  | — |  |  |  | (5 | )
Reductions for lapse of applicable statutes of limitations |  |  | (5 | ) |  |  | (9 | ) |  |  | (18 | )
Unrecognized tax benefit at end of year |  | $ | 128 |  |  | $ | 131 |  |  | $ | 118 |

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