Income Taxes (Tables)

12 Months Ended

Dec. 31, 2010

Income Taxes (Table) [Abstract]

Income tax expense

	Year Ended December 31
$ in millions	2010		2009		2008
Income Taxes on Continuing Operations
Currently payable
Federal income taxes	$	394	$	390	$	704
Foreign income taxes		11		34		35
Total federal and foreign income taxes currently payable		405		424		739
Change in deferred federal and foreign income taxes		57		212		84
Total federal and foreign income taxes	$	462	$	636	$	823

Income (loss) before taxes by domestic and foreign sources

	Year Ended December 31
$ in millions	2010		2009		2008
Domestic income	$	2,319	$	1,944	$	1,739
Foreign income		47		126		102
Earnings from continuing operations before income taxes	$	2,366	$	2,070	$	1,841

Income tax reconciliation

	Year Ended December 31
$ in millions	2010			2009			2008
Income tax expense on continuing operations at statutory rate	$	828		$	725		$	644
Goodwill impairment								200
Manufacturing deduction		(33	)		(18	)		(17	)
Research tax credit		(12	)		(15	)		(12	)
Settlement of IRS appeals cases, net of additional uncertain tax position accruals		(298	)		(77	)		(33	)
Other, net		(23	)		21			41
Total federal and foreign income taxes	$	462		$	636		$	823

Unrecognized tax benefit rollforward

	December 31
$ in millions	2010			2009			2008
Unrecognized tax benefits at beginning of the year	$	429		$	416		$	488
Additions based on tax positions related to the current year		19			12			5
Additions for tax positions of prior years		4			61			15
Statute expiration								(9	)
Settlements		(326	)		(60	)		(83	)
Net change in unrecognized tax benefits		(303	)		13			(72	)
Unrecognized tax benefits at end of the year	$	126		$	429		$	416

Components of deferred tax assets and liabilities

	December 31
$ in millions	2010		2009
Deferred Tax Assets
Retirement benefits	$	1,337	$	1,562
Provisions for accrued liabilities		708		719
Stock-based compensation		91		72
Other		24		69
Gross deferred tax assets		2,160		2,422
Less valuation allowance
Net deferred tax assets		2,160		2,422
Deferred Tax Liabilities
Goodwill amortization		603		528
Depreciation and amortization		264		324
Purchased intangibles		139		184
Contract accounting differences		14		8
Gross deferred tax liabilities		1,020		1,044
Total net deferred tax assets	$	1,140	$	1,378

Net deferred tax assets (liabilities)

	December 31
$ in millions	2010		2009
Net current deferred tax assets	$	419	$	275
Net non-current deferred tax assets		721	$	1,103
Total net deferred tax assets	$	1,140	$	1,378