Income Taxes

9 Months Ended

Oct. 01, 2011

Income Taxes [Abstract]

Income Taxes

Note 8 Income taxes

The consolidated effective tax rate for the quarter ended October 1, 2011, of 27% was lower than the prior year's rate of 30%. The consolidated effective tax rate for the year-to-date period ended October 1, 2011 was 28%, compared to the prior year-to-date period ended October 2, 2010 rate of 29%. The effective rate for the third quarter of 2011 benefited from a write off of an investment ina Latin America subsidiary as well as a decrease in the United Kingdom's statutory income tax rate.

As of October 1, 2011, the Company classified $12 million of unrecognized tax positions as a net current liability, representing several income tax positions under examination in various jurisdictions. Management's estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months consists of the current liability balance, expected to be settled within one year, offset by $8 million of projected additions. Management is currently unaware of any issues under review that could result in significant additional payments, accruals or other material deviation in this estimate.

Following is a reconciliation of the Company's total gross unrecognized tax benefits for the year-to-date period ended October 1, 2011; $50 million of this total represents the amount that, if recognized, would affect the Company's effective income tax rate in future periods.

(millions)
January 1, 2011		$	104
Tax positions related to current year:
	Additions		7
Tax positions related to prior years:
	Additions		8
	Reductions		(16)
Settlements			(34)
October 1, 2011		$	69

The Company had the following amounts of income tax related interestaccrued as of January 1, 2011 and October 1, 2011.

(millions)
Interest accrued at January 1, 2011	$	26
Reduction of interest expense recognized for the year-to-date period ended October 1, 2011	$	(2)
Interest accrued at October 1, 2011	$	18