Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

20. Income Taxes

We recognized total income tax expense from continuing operations of $87 million and $101 million during the three months and nine months ended September 30, 2011, respectively, compared to $48 million and $117 million for the same periods in 2010. A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations is shown in the following table.

	2011						2010
Three months ended September 30, ($ in millions)	Amount			Percent			Amount			Percent
Statutory U.S. federal tax (benefit) expense and rate	$	(43	)		35.0	%	$	114			35.0	%
Change in tax rate resulting from
Effect of valuation allowance change		175			(142.3	)		(54	)		(16.6	)
Foreign tax differential		(34	)		27.6			1			0.3
State and local income taxes, net of federal income tax benefit		(8	)		6.5			(3	)		(0.9	)
Taxes on unremitted foreign earnings		4			(3.3	)		10			3.1
Tax-exempt income		(2	)		1.6			(1	)		(0.3	)
Foreign capital loss		—			—			(25	)		(7.7	)
Other, net		(5	)		4.2			6			1.9
Tax expense and effective tax rate	$	87			(70.7	)%	$	48			14.8	%
	2011						2010
Nine months ended September 30, ($ in millions)	Amount			Percent			Amount			Percent
Statutory U.S. federal tax expense and rate	$	60			35.0	%	$	331			35.0	%
Change in tax rate resulting from
Effect of valuation allowance change		126			73.7			(247	)		(26.1	)
Foreign tax differential		(79	)		(46.2	)		(4	)		(0.4	)
Taxes on unremitted foreign earnings		22			12.9			15			1.6
State and local income taxes, net of federal income tax benefit		(15	)		(8.8	)		2			0.2
Tax-exempt income		(4	)		(2.3	)		(5	)		(0.5	)
Foreign capital loss		—			—			29			3.1
Other, net		(9	)		(5.2	)		(4	)		(0.5	)
Tax expense and effective tax rate	$	101			59.1	%	$	117			12.4	%

During the nine months ended September 30, 2011, we recorded a $101 million reversal of valuation allowance on net deferred tax assets in one of our Canadian subsidiaries. The reversal related to modifications to the legal structure of our Canadian operations. Additionally, we recorded other net increases to our consolidated valuation allowance on deferred tax assets of $180 million, stemming primarily from net pre-tax losses within our U.S.-based operations during the period.