Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

The domestic and foreign components of income before income taxes and noncontrolling interests

	Year Ended December 31,
	2011		2010		2009
	(Millions)
U.S. income (loss) before income taxes	$	55	$	(45)	$	(118	)
Foreign income before income taxes		216		177		77
Income (loss) before income taxes and noncontrolling interests	$	271	$	132	$	(41	)

Comparative analysis of the components of income tax expense

	Year Ended December 31,
	2011			2010		2009
	(Millions)
Current —
U.S. federal	$	—		$	—	$	(2	)
State and local		2			1		4
Foreign		91			64		35
		93			65		37
Deferred —
U.S. federal		—			—		(18	)
State and local		—			—		(3	)
Foreign		(5	)		4		(3	)
		(5	)		4		(24	)
Income tax expense	$	88		$	69	$	13

Reconciliation of income taxes computed at the statutory U.S. federal income tax rate to the income tax expense reflected in the statements of income (loss)

	Year Ended December 31,
	2011			2010			2009
	(Millions)
Income tax expense (benefit) computed at the statutory U.S. federal income tax rate	$	95		$	46		$	(14	)
Increases (reductions) in income tax expense resulting from:
Foreign income taxed at different rates		(14	)		(16	)		14
Taxes on repatriation of dividends		6			4			4
State and local taxes on income, net of U.S. federal income tax benefit		2			2			2
Changes in valuation allowance for tax loss carryforwards and credits		(11	)		16			5
Foreign tax holidays		(4	)		(5	)		(3	)
Investment and R&D tax credits		(4	)		(2	)		(5	)
Foreign earnings subject to U.S. federal income tax		6			5			3
Adjustment of prior years taxes		—			4			—
Impact of foreign tax law changes		—			(1	)		2
Tax contingencies		3			12			6
Goodwill impairment		3			—			—
Other		6			4			(1	)
Income tax expense	$	88		$	69		$	13

Components of net deferred tax assets

	December 31,
	2011			2010
	(Millions)
Deferred tax assets —
Tax loss carryforwards:
U.S. federal	$	41		$	96
State		45			43
Foreign		57			56
Investment tax credit benefits		45			46
Postretirement benefits other than pensions		54			52
Pensions		79			55
Bad debts		3			3
Sales allowances		6			6
Payroll and other accruals		98			93
Valuation allowance		(225	)		(247	)
Total deferred tax assets		203			203
Deferred tax liabilities —
Tax over book depreciation		65			82
Other		62			54
Total deferred tax liabilities		127			136
Net deferred tax assets	$	76		$	67

Reconciliation of deferred taxes to the deferred taxes shown in the balance sheet

	December 31,
	2011			2010
	(Millions)
Balance Sheet:
Current portion — deferred tax asset	$	40		$	38
Non-current portion — deferred tax asset		92			92
Current portion — deferred tax liability shown in other current liabilities		(5	)		(7	)
Non-current portion — deferred tax liability		(51	)		(56	)
Net deferred tax assets	$	76		$	67

Reconciliation of uncertain tax positions

	2011			2010			2009
	(Millions)
Uncertain tax positions —
Balance January 1	$	111		$	96		$	83
Gross increases in tax positions in current period		19			23			17
Gross increases in tax positions in prior period		3			4			16
Gross decreases in tax positions in prior period		(10	)		(6	)		—
Gross decreases — settlements		—			(2	)		(17	)
Gross decreases — statute of limitations expired		(4	)		(4	)		(3	)
Balance December 31	$	119		$	111		$	96

Tax years open to examination in primary jurisdictions

	Open To  Tax Year
United States — due to NOL		1998
Spain		2003
Germany		2006
Canada		2007
Belgium		2009
United Kingdom		2010