INCOME TAXES	3 Months Ended
Mar. 31, 2013
INCOME TAXES
INCOME TAXES	8) INCOME TAXES We reported an income tax expense of $8 million and an income tax benefit of $1 million for the quarters ended March 31, 2013 and 2012, respectively. We have increased our U.S. net operating loss and associated valuation allowance for the first quarter of 2013 U.S. loss. We have offset our prior period year-to-date U.S. income with net operating loss carryforwards and reduced the associated valuation allowance. We will continue to adjust our tax provision through the establishment or reduction of non-cash valuation allowances until we determine that it is more-likely than not that the net deferred tax assets associated with our U.S. operations will be utilized. We have net liabilities related to unrecognized tax benefits of $39 million and $41 million at March 31, 2013 and December 31, 2012, respectively. The decrease is primarily due to currency fluctuation. We recognize interest and penalties related to unrecognized tax benefits as income tax expense. Accrued interest and penalties are included within the related liability captions in our Consolidated Balance Sheet. We believe it is reasonably possible that our unrecognized tax benefits may decrease by approximately $3 million within the next year. This reduction may occur due to the expiration of the statute of limitations or conclusion of examinations by tax authorities. We further expect that the amount of unrecognized tax benefits will continue to change as a result of ongoing operations, the outcomes of audits and the expiration of the statue of limitations. This change is not expected to have a significant impact on our financial condition.

INCOME TAXES

3 Months Ended

Mar. 31, 2013

8) INCOME TAXES

We reported an income tax expense of $8 million and an income tax benefit of $1 million for the quarters ended March 31, 2013 and 2012, respectively. We have increased our U.S. net operating loss and associated valuation allowance for the first quarter of 2013 U.S. loss. We have offset our prior period year-to-date U.S. income with net operating loss carryforwards and reduced the associated valuation allowance. We will continue to adjust our tax provision through the establishment or reduction of non-cash valuation allowances until we determine that it is more-likely than not that the net deferred tax assets associated with our U.S. operations will be utilized.

We have net liabilities related to unrecognized tax benefits of $39 million and $41 million at March 31, 2013 and December 31, 2012, respectively. The decrease is primarily due to currency fluctuation.

We recognize interest and penalties related to unrecognized tax benefits as income tax expense. Accrued interest and penalties are included within the related liability captions in our Consolidated Balance Sheet.

We believe it is reasonably possible that our unrecognized tax benefits may decrease by approximately $3 million within the next year. This reduction may occur due to the expiration of the statute of limitations or conclusion of examinations by tax authorities. We further expect that the amount of unrecognized tax benefits will continue to change as a result of ongoing operations, the outcomes of audits and the expiration of the statue of limitations. This change is not expected to have a significant impact on our financial condition.