
11.	Income Taxes

The U.S. Federal income tax jurisdiction is the Company’s major tax jurisdiction. The statutes of limitations for the Company’s U.S. Federal income tax returns for the years ended December 31, 2006 through 2009 are open as of July 1, 2011. The Company’s U.S. Federal tax return for the year ended December 31, 2010 will be completed and filed no later than September 15, 2011. In the second quarter of 2011, the Company reached an agreement with the Internal Revenue Service (IRS) in connection with the Company’s 2006 and 2007 U.S. Federal income tax returns. As a result of this agreement, the Company reversed previously accrued amounts relating to its provision for income taxes by $12 million. The statutes of limitations for these tax returns are expected to close in the fourth quarter of 2011. In addition, the Company has numerous state and foreign income tax return audits currently in process. As of July 1, 2011, the Company anticipates that unrecognized tax benefits will decrease by approximately $79 million over the next 12 months.

Current and non-current income taxes payable include accrued potential interest of $22 million ($13 million after income taxes) at July 1, 2011 and December 31, 2010, respectively, and potential penalties of $13 million at July 1, 2011 and December 31, 2010, respectively.