Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income tax data from continuing operations

	2011				2010				2009
Income components:
United States		$	(466	)		$	(395	)		$	(306	)
International			148				119				98
Total pre-tax loss from continuing operations		$	(318	)		$	(276	)		$	(208	)
Income tax expense (benefit) components:
Current income tax expense (benefit):
United States – federal		$	(80	)		$	(61	)		$	9
United States – state and local			(12	)			–				(2	)
International			49				28				18
Total current income tax (benefit) expense			(43	)			(33	)			25
Deferred income tax expense (benefit):
United States – federal			319				(100	)			(115	)
United States – state and local			(15	)			(15	)			(9	)
International			(1	)			4				2
Total deferred income tax expense (benefit)			303				(111	)			(122	)
Total income tax expense (benefit)		$	260			$	(144	)		$	(97	)
Effective income tax rate			(81.8	)%			52.2	%			46.6	%

Reconciliation of the tax provision for continuing operations

	2011			2010			2009
Tax provision at U.S. statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		4.2			2.2			1.9
State and local income tax		0.5			5.6			5.8
Tax on undistributed foreign earnings		(21.8	)		–			–
Change in state tax rate		9.7			–			–
Valuation allowance on realizability of deferred tax assets		(106.7	)		14.6			6.6
U.S. permanent items		–			–			(6.5	)
Audit settlements		–			–			(1.0	)
Medicare		0.4			(4.2	)		–
U.S. tax on foreign earnings		(6.8	)		(16.0	)		–
Tax credits		7.2			12.6			5.3
Other adjustments		(3.5	)		2.4			(0.5	)
Effective income tax rate		(81.8	)%		52.2	%		46.6	%

Deferred tax assets and liabilities

	2011				2010
Deferred Tax Assets:
Accruals		$	355			$	303
Employee benefits			135				69
Credit carryforwards			35				7
Loss carryforwards			65				57
Other			40				60
Subtotal			630				496
Valuation allowance			(438	)			(28	)
Net deferred tax assets		$	192			$	468
Deferred Tax Liabilities:
Undistributed earnings		$	(69	)		$	–
Intangibles			(51	)			(50	)
Accelerated depreciation			(21	)			(23	)
Investment			(1	)			(1	)
Total deferred tax liabilities		$	(142	)		$	(74	)

Deferred taxes in the Consolidated Balance Sheets

	2011				2010
Current assets		$	25			$	85
Non-current assets			45				320
Current liabilities			(2	)			–
Other non-current liabilities			(18	)			(11	)
Net deferred taxes		$	50			$	394

Attributes available for utilization

ATTRIBUTE	AMOUNT			FIRST YEAR OF EXPIRATION
U.S. federal net operating losses		$	85		2031
U.S. state net operating losses			2,519		2012
Federal and state capital losses			13		2013
U.S. federal tax credits			33		2012
U.S. state tax credits			12		2012
Foreign net operating losses			87		2012

A reconciliation of the beginning and ending amount of unrecognized tax benefits

	2011				2010				2009
Unrecognized tax benefits – January 1		$	169			$	149			$	126
Additions for:
Prior year tax positions			1				17				28
Current year tax positions			15				48				2
Purchase accounting			–				5				–
Reductions for:
Prior year tax positions			(21	)			(38	)			(6	)
Settlements			–				(12	)			(1	)
Unrecognized tax benefits – December 31		$	164			$	169			$	149

Open tax years by major jurisdiction

JURISDICTION	EARLIEST OPEN YEAR
Germany		2006
Italy		2005
Netherlands		2008
United Kingdom		2008
United States		2007