Income Taxes From Continuing Operations (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Expense (Benefit) [Abstract]

Schedule Of Earnings From Continuing Operations Before Income Taxes

Earnings from continuing operations before income taxes for the years ended December 31 consist of the following ($ in millions):

	2012		2011		2010
United States	$	1,349.9	$	1,168.1	$	1,006.3
International	1,660.9		1,279.7		1,223.3
Total	$	3,010.8	$	2,447.8	$	2,229.6

Schedule Of Provision For Income Taxes

The provision for income taxes from continuing operations for the years ended December 31 consists of the following ($ in millions):

	2012		2011			2010
Current:
Federal U.S.	$	290.5	$	(6.3	)	$	362.2
Non-U.S.	197.2		206.0			88.7
State and local	38.9		41.4			22.8
Deferred:
Federal U.S.	175.0		265.9			45.1
Non-U.S.	0.8		(13.3		)	(12.4		)
State and local	9.1		18.8			5.0
Income tax provision	$	711.5	$	512.5		$	511.4

Schedule Of Deferred Income Tax

Deferred income tax assets and liabilities as of December 31 consist of the following ($ in millions):

	2012			2011
Deferred tax assets:
Allowance for doubtful accounts	$	18.2		$	70.9
Inventories	113.9			154.5
Pension and post-retirement benefits	397.8			382.0
Environmental and regulatory compliance	26.5			35.5
Other accruals and prepayments	442.3			425.1
Stock compensation expense	111.1			114.6
Tax credit and loss carryforwards	916.4			864.0
Other	22.0			2.8
Valuation allowances	(382.5		)	(316.6		)
Total deferred tax asset	1,665.7			1,732.8
Deferred tax liabilities:
Property, plant and equipment	(214.2		)	(258.5		)
Insurance, including self–insurance	(381.2		)	(195.9		)
Basis difference in LYONs	(99.7		)	(118.6		)
Goodwill and other intangibles	(2,146.3		)	(2,016.4		)
Deferred service income	(71.6		)	(174.7		)
Unrealized gains on marketable securities	(72.7		)	(56.8		)
Total deferred tax liability	(2,985.7		)	(2,820.9		)
Net deferred tax liability	$	(1,320.0	)	$	(1,088.1	)

Reconciliation Of The Statutory Federal Income Tax Rate To The Effective Tax Rate

The effective income tax rate for the years ended December 31 varies from the statutory federal income tax rate as follows:

	Percentage of Pre-Tax Earnings
	2012		2011		2010
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in tax rate resulting from:
State income taxes (net of Federal income tax benefit)	1.1		1.0		1.4
Foreign income taxed at lower rate than U.S. statutory rate	(14.1	)	(12.8	)	(10.5	)
Resolution of uncertain tax positions/statute expirations	(0.3	)	(2.4	)	(0.6	)
Acquisition costs	0.1		0.4		—
Research and experimentation credits and other	1.8		(0.3	)	(0.3	)
Joint venture formation	—		—		(2.1	)
Effective income tax rate	23.6	%	20.9	%	22.9	%

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows ($ in millions):

	2012			2011			2010
Unrecognized tax benefits, beginning of year	$	518.3		$	517.5		$	439.3
Additions based on tax positions related to the current year	60.8			46.6			62.2
Additions for tax positions of prior years	94.7			77.1			101.8
Reductions for tax positions of prior years	(38.4		)	(59.7		)	(50.0		)
Acquisitions	19.7			85.5			5.7
Lapse of statute of limitations	(20.7		)	(124.3		)	(32.8		)
Settlements	(23.2		)	(21.2		)	(4.9		)
Effect of foreign currency translation	2.0			(3.2		)	(3.8		)
Unrecognized tax benefits, end of year	$	613.2		$	518.3		$	517.5