Income Taxes (Tables)

12 Months Ended

Jun. 30, 2011

Income Taxes

Components of earnings before income taxes

	2011		2010		2009
	(In millions)
United States	$	2,035	$	1,453	$	1,332
Foreign	980		1,132		1,168
	$	3,015	$	2,585	$	2,500

Significant components of income taxes

	2011			2010			2009
	(In millions)
Current
Federal	$	251		$	422		$	626
State	10			18			28
Foreign	222			195			139
Deferred
Federal	483			107			(4		)
State	43			(4		)	10
Foreign	(12		)	(72		)	13
	$	997		$	666		$	812

Significant components of deferred tax liabilities and assets

	2011			2010
	(In millions)
Deferred tax liabilities
Property, plant, and equipment	$	1,016		$	677
Equity in earnings of affiliates	255			187
Inventories	324			33
Other	104			143
	$	1,699		$	1,040
Deferred tax assets
Pension and postretirement benefits	$	307		$	358
Stock compensation	58			59
Foreign tax credit carryforwards	46			41
Foreign tax loss carryforwards	220			135
State tax attributes	57			50
Other	129			120
Gross deferred tax assets	817			763
Valuation allowances	(95		)	(71		)
Net deferred tax assets	$	722		$	692
Net deferred tax liabilities	$	977		$	348
Current deferred tax assets (liabilities) included in other assets (accrued expenses)	(118		)	91
Non-current deferred tax liabilities	$	859		$	439

Reconciliation of the statutory federal income tax rate to the Company's effective tax rate on earnings

	2011		2010		2009
Statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	1.1		0.3		1.0
Foreign earnings taxed at rates other than the U.S. statutory rate	(4.9	)	(8.2	)	(8.7	)
Foreign currency remeasurement	0.9		(0.7	)	(0.5	)
WIHL Liquidation	—		0.5		6.6
Other	1.0		(1.1	)	(0.9	)
Effective rate	33.1	%	25.8	%	32.5	%

Unrecognized tax benefits

	Unrecognized Tax Benefits
	2011			2010
	(in millions)
Beginning balance	$	84		$	54
Additions related to current year’s tax positions	4			31
Additions related to prior years’ tax positions	—			8
Reductions related to prior years’ tax positions	(7		)	(7		)
Settlements with tax authorities	(2		)	(2		)
Ending balance	$	79		$	84