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Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes [Abstract]  
INCOME TAXES
 
NOTE 6
INCOME TAXES
 
Effective Tax Rate
 
 
Our quarterly income tax expense is measured using an estimated annual effective tax rate, adjusted for discrete items within the period. The comparison of effective tax rates between periods is significantly affected by discrete items recognized during the periods, the level and mix of earnings by tax jurisdiction and permanent differences. The estimated annual effective tax rate for 2011 and 2010 was comparable before the impact of discrete items.
 
 
Income tax expense for the three months ended June 30, 2011 and 2010 was $80 and $79, respectively, resulting in effective tax rates of 32.3% and 25.9%, respectively. The 2011 effective tax rate was increased by approximately 1.0% for costs related to the Transformation and approximately 2.0% for recognition of an adjustment for a prior year transaction. The second quarter 2010 effective tax rate was reduced by approximately 3.0% related to the closure of a tax examination.
 
 
Income tax expense for the six months ended June 30, 2011 and 2010 was $125 and $154, respectively, resulting in effective tax rates of 29.8% and 29.4%, respectively. The 2011 effective tax rate was increased by 1.0% for costs related to the Transformation. The second quarter 2010 effective tax rate was increased by 2.2% due the impact of the Medicare Part D subsidy reversal and reduced by 1.8% related to the closure of a tax examination.
 
Uncertain Tax Positions
 
 
As of June 30, 2011 and December 31, 2010, we had $182 and $192, respectively, of total unrecognized tax benefits recorded. The amount of unrecognized tax benefits that would affect the effective tax rate was $92 and $90 at June 30, 2011 and December 31, 2010, respectively. Uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. We believe it is reasonably possible that the total amount of unrecognized tax benefits at June 30, 2011 could decrease by $8 within the next 12 months due to the reversal of a temporary difference.