Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Reconciliation of the beginning and ending amount of unrecognized tax benefits

(In millions)	2011			2010			2009
Balance at January 1,	$	33		$	39		$	29
Additions for tax positions of prior years		6			1			9
Reductions for tax positions of prior years		(2	)		(15	)		(7	)
Additions based on tax positions related to the current year		9			9			20
Settlements		(1	)		—			(10	)
Lapse of statute of limitations		(3	)		(1	)		(2	)
Balance at December 31,	$	42		$	33		$	39

Provision (benefit) for income taxes

	Year Ended December 31,
	2011			2010		2009
	(In millions)
Current
Federal	$	548		$	489	$	469
State		120			112		111
Deferred
Federal		(10	)		5		(6	)
State		(4	)		—		(3	)
Total	$	654		$	606	$	571

Deferred tax assets (liabilities)

	December 31,
(In millions)	2011			2010
Deferred tax assets:
Employee benefits	$	154		$	98
Settlement costs		498			456
State and local income taxes		18			14
Litigation and legal		7			36
Other		8			10
Gross deferred tax assets		685			614
Deferred tax liabilities:
Depreciation		(57	)		(52	)
Inventory		(6	)		(21	)
Federal effect of state deferred taxes		(33	)		(32	)
Gross deferred tax liabilities		(96	)		(105	)
Net deferred tax assets	$	589		$	509

Reconciliation between the statutory federal income tax rate and Lorillard's effective income tax rate as a percentage of income

	2011			2010			2009
Statutory rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in rate resulting from:
State taxes		4.3			4.5			4.6
Domestic manufacturer’s deduction		(2.4	)		(2.5	)		(1.9	)
Other		0.1			0.1			(0.1	)
Effective rate		37.0	%		37.1	%		37.6	%