Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Expense (Benefit) [Abstract]

Earnings From Continuing Operations Before Income Taxes

Components of earnings from continuing operations before income taxes are as follows:

Years ended December 31	2012		2011		2010
United States	$	851	$	462	$	368
Other nations	364		276		296
	$	1,215	$	738	$	664

Income Tax Expense (Benefit)

Components of income tax expense (benefit) are as follows:

Years ended December 31	2012			2011			2010
United States	$	5		$	2		$	(45	)
Other nations	89			30			183
States (U.S.)	1			3			74
Current income tax expense	95			35			212
United States	296			(118		)	373
Other nations	(12		)	111			(54		)
States (U.S.)	(42		)	(31		)	(128		)
Deferred income tax expense (benefit)	242			(38		)	191
Total income tax expense (benefit)	$	337		$	(3	)	$	403

Federal Statutory Tax Rate And Income Tax Expense

Differences between income tax expense computed at the U.S. federal statutory tax rate of 35% and income tax expense (benefit) as reflected in the consolidated statements of operations are as follows:

Years ended December 31	2012			2011			2010
Income tax expense at statutory rate	$	425		$	258		$	232
Taxes on non-U.S. earnings	(10		)	(23		)	(10		)
State income taxes	(27		)	(2		)	(35		)
Valuation allowances	(60		)	(237		)	(18		)
Tax on undistributed non-U.S. earnings	30			51			287
Other provisions	(7		)	(17		)	(45		)
Research credits	—			(11		)	(6		)
Tax law changes	—			—			18
Section 199 deduction	(14		)	(22		)	(20		)
	$	337		$	(3	)	$	403

Components Of Deferred Tax Assets And Liabilities

Significant components of deferred tax assets (liabilities) are as follows:

December 31	2012			2011
Inventory	$	1		$	38
Accrued liabilities and allowances	134			254
Employee benefits	1,544			1,279
Capitalized items	254			290
Tax basis differences on investments	28			44
Depreciation tax basis differences on fixed assets	19			13
Undistributed non-U.S. earnings	(150		)	(275		)
Tax carryforwards	1,155			1,438
Business reorganization	12			13
Warranty and customer reserves	45			44
Deferred revenue and costs	310			218
Valuation allowances	(308		)	(366		)
Deferred charges	36			39
Other	(63		)	(46		)
	$	3,017		$	2,983

Summary Of Tax Credit Carryforwards

Tax carryforwards are as follows:

December 31, 2012	Gross Tax Loss		Tax Effected		Expiration Period
United States:
U.S. tax losses	$	94	$	33	2018-2032
Foreign tax credits	n/a		400		2017-2019
General business credits	n/a		214		2024-2032
Minimum tax credits	n/a		104		Unlimited
State tax losses	2,245		54		2013-2031
State tax credits	n/a		27		2013-2026
Non-U.S. Subsidiaries:
Canada tax losses	35		9		Unlimited
China tax losses	429		107		2013-2017
Japan tax losses	128		47		2017-2021
United Kingdom tax losses	93		21		Unlimited
Germany tax losses	177		53		Unlimited
Singapore tax losses	80		14		Unlimited
Other subsidiaries tax losses	62		15		Various
Canada tax credits	n/a		23		2024-2032
Spain tax credits	n/a		29		2017-2021
Other subsidiaries tax credits	n/a		5		Various
			$	1,155

Unrecognized Tax Benefits, Including Those Attributable To Discontinued Operations

A roll-forward of unrecognized tax benefits is as follows:

	2012			2011
Balance at January 1	$	191		$	198
Additions based on tax positions related to current year	11			45
Additions for tax positions of prior years	11			38
Reductions for tax positions of prior years	(24		)	(63		)
Settlements and agreements	(24		)	(22		)
Lapse of statute of limitations	(4		)	(5		)
Balance at December 31	$	161		$	191

Summary Of Open Tax Years By Major Jurisdiction

The IRS is currently examining the Company's 2010 and 2011 tax years. The Company also has several state and non-U.S. audits pending. A summary of open tax years by major jurisdiction is presented below:

Jurisdiction	Tax Years
United States	2008—2012
China	2002—2012
France	2009—2012
Germany	2008—2012
India	1997—2012
Israel	2007—2012
Japan	2009—2012
Malaysia	2007—2012
Singapore	2007—2012
United Kingdom	2005—2012