Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

Income tax expense

	Year Ended December 31
$ in millions	2011			2010			2009
Income Taxes on Continuing Operations
Currently payable
Federal income taxes		$	592		$	394		$	390
Foreign income taxes			18			11			34
Total federal and foreign income taxes currently payable			610			405			424
Change in deferred federal and foreign income taxes			387			57			212
Total federal and foreign income taxes		$	997		$	462		$	636

Income (loss) before taxes by domestic and foreign sources

	Year Ended December 31
$ in millions	2011			2010			2009
Domestic		$	2,998		$	2,319		$	1,944
Foreign			85			47			126
Earnings from continuing operations before income taxes		$	3,083		$	2,366		$	2,070

Income tax reconciliation

	Year Ended December 31
$ in millions	2011				2010				2009
Income tax expense on continuing operations at statutory rate		$	1,079			$	828			$	725
Manufacturing deduction			(32	)			(33	)			(18	)
Research tax credit			(17	)			(12	)			(15	)
Settlement of IRS appeals cases, net of additional uncertain tax position accruals							(298	)			(77	)
ESOP dividends			(13	)			(14	)			(13	)
Other, net			(20	)			(9	)			34
Total federal and foreign income taxes		$	997			$	462			$	636

Unrecognized tax benefit rollforward

	December 31
$ in millions	2011				2010				2009
Unrecognized tax benefits at beginning of the year		$	126			$	429			$	416
Additions based on tax positions related to the current year			11				19				12
Additions for tax positions of prior years			31				4				61
Reductions for tax positions of prior years			(22	)
Settlements			(28	)			(326	)			(60	)
Net change in unrecognized tax benefits			(8	)			(303	)			13
Unrecognized tax benefits at end of the year		$	118			$	126			$	429

Components of deferred tax assets and liabilities

	December 31
$ in millions	2011				2010
Deferred Tax Assets
Retirement benefits		$	1,819			$	1,337
Provisions for accrued liabilities			649				686
Stock-based compensation			130				91
Other			78				10
Gross deferred tax assets			2,676				2,124
Less valuation allowance			(50	)
Net deferred tax assets			2,626				2,124
Deferred Tax Liabilities
Goodwill amortization			716				692
Depreciation and amortization			277				143
Contract accounting differences			218				255
Purchased intangibles			19				14
Gross deferred tax liabilities			1,230				1,104
Total net deferred tax assets		$	1,396			$	1,020

Net deferred tax assets

	December 31
$ in millions	2011			2010
Net current deferred tax assets		$	496		$	392
Net non-current deferred tax assets			900			628
Total net deferred tax assets		$	1,396		$	1,020