Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Components Of Earnings Before Income Taxes by Geographic Region



	2012		2011		2010
	(In millions)

United States	$	1,035	$	2,035	$	1,453
Foreign		730		980		1,132
	$	1,765	$	3,015	$	2,585

Significant Components Of Income Taxes



	2012		2011		2010
	(In millions)
Current
Federal	$	300	$	251	$	422
State		21		10		18
Foreign		118		222		195
Deferred
Federal		66		483		107
State		9		43		(4)
Foreign		9		(12)		(72)
	$	523	$	997	$	666

Significant Components Of Deferred Tax Liabilities And Assets



	2012		2011
	(In millions)
Deferred tax liabilities
Property, plant, and equipment	$	1,085	$	1,016
Equity in earnings of affiliates		334		255
Inventories		81		324
Other		150		104
	$	1,650	$	1,699

Deferred tax assets
Pension and postretirement benefits	$	487	$	307
Stock compensation		63		58
Foreign tax credit carryforwards		31		46
Foreign tax loss carryforwards		241		220
State tax attributes		67		57
Other		126		129
Gross deferred tax assets		1,015		817
Valuation allowances		(145)		(95)
Net deferred tax assets	$	870	$	722

Net deferred tax liabilities	$	780	$	977
Current deferred tax assets (liabilities) included in other assets (accrued expenses and other payables)		(60)		(118)
Non-current deferred tax liabilities	$	720	$	859

Reconciliation Of The Statutory Federal Income Tax Rate To The Company's Effective Tax Rate On Earnings



	2012		2011		2010

Statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of
federal tax benefit	1.4		1.1		0.3
Foreign earnings taxed at rates
other than the U.S. statutory rate	(4.2)		(4.9)		(8.2)
Foreign currency remeasurement	(3.3)		0.9		(0.7)
Other	0.7		1.0		(0.6)
Effective rate	29.6	%	33.1	%	25.8	%

Unrecognized Tax Benefits



	Unrecognized Tax Benefits
	2012		2011
	(In millions)

Beginning balance	$	79	$	84
Additions related to current year’s tax positions		-		4
Additions related to prior years’ tax positions		26		–
Reductions related to prior years’ tax positions		(21)		(7)
Settlements with tax authorities		(4)		(2)
Ending balance	$	80	$	79

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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