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Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

For the years ended December 31, income from continuing operations before income taxes consisted of the following:



In millions	2011			2010			2009
(Loss) income before income taxes
United States	$	(255	)	$	(102	)	$	(168	)
Foreign	304			195			230
Total income from continuing operations before income taxes	$	49		$	93		$	62

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

For the years ended December 31, income tax (benefit) expense consisted of the following:



In millions	2011			2010			2009
Income tax (benefit) expense
Current
Federal	$	2		$	(8	)	$	1
State	1			1			7
Foreign	61			44			67
Deferred
Federal	(64		)	(23		)	(50		)
State	(2		)	(1		)	(6		)
Foreign	2			(39		)	(22		)
Total income tax (benefit) expense	$	—		$	(26	)	$	(3	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31:



In millions	2011			2010			2009
Income tax (benefit) expense at the U.S. federal tax rate of 35%	$	17		$	32		$	22
Foreign income tax differential	(19		)	(23		)	(33		)
U.S. permanent book/tax differences	4			2			(1		)
Tax audit settlements	(12		)	—			—
Change in liability for unrecognized tax benefits	2			4			11
Nondeductible transaction costs	4			—			—
Federal capital loss valuation allowance	5			—			—
Japan valuation allowance release	—			(40		)	—
Other, net	(1		)	(1		)	(2		)
Total income tax (benefit) expense	$	—		$	(26	)	$	(3	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income tax assets and liabilities included in the Consolidated Balance Sheets as of December 31 were as follows:



In millions	2011			2010
Deferred income tax assets
Employee pensions and other benefits	$	658		$	540
Other balance sheet reserves and allowances	148			170
Tax loss and credit carryforwards	376			341
Capitalized research and development	67			57
Property, plant and equipment	49			18
Intangibles	—			5
Other	56			47
Total deferred income tax assets	1,354			1,178
Valuation allowance	(412		)	(410		)
Net deferred income tax assets	942			768
Deferred income tax liabilities
Intangibles	81			—
Capitalized software	10			11
Other	9			7
Total deferred income tax liabilities	100			18
Total net deferred income tax assets	$	842		$	750

Summary of Income Tax Contingencies [Table Text Block]

The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended December 31:



In millions	2011			2010
Gross unrecognized tax benefits - January 1	$	285		$	288
Increases related to tax positions from prior years	18			16
Decreases related to tax positions from prior years	(28		)	(23		)
Increases related to tax provisions taken during the current year	23			30
Settlements with tax authorities	(33		)	(11		)
Lapses of statutes of limitation	(13		)	(15		)
Total gross unrecognized tax benefits - December 31	$	252		$	285

- 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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