Income Taxes

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision relating to continuing operations consists of the following: 

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
(millions)
Current	$	56		$	39		$	100		$	36
Deferred	59			48			100			54
Total Income Tax Provision	$	115		$	87		$	200		$	90
Effective Tax Rate	29		%	24		%	28		%	28		%

Our effective tax rate for the first six months of 2012 was the same as the first six months of 2011. During the second quarter of 2012, we recognized income tax expense of $13 million with respect to a reserve for uncertain tax positions related to prior years.

During the six months of 2011, we increased the valuation allowance against our deferred tax asset for foreign tax credits by $14 million resulting in a corresponding increase in income tax expense.

In our major tax jurisdictions, the earliest years remaining open to examination are as follows: US – 2008, Equatorial Guinea – 2007, Israel – 2008, UK – 2010, the Netherlands – 2009, and China – 2006.

See Note 3. Acquisitions and Divestitures for income taxes related to discontinued operations.