Income Taxes

9 Months Ended

Sep. 30, 2011

Disclosure Text Block [Abstract]

Income Taxes

12.  Income Taxes

The following is a summary of income tax expense (benefit) and effective tax rates.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
millions except percentages	2011			2010			2011			2010
Income tax expense (benefit)	$	(1,468)		$	94		$	(762)		$	660
Effective tax rate		33	%		109	%		25	%		49	%

The Company reported a loss before income taxes for the three and nine months ended September 30, 2011.As a result, items that ordinarily increase or decrease the tax rate will have the opposite effect. The decrease from the 35% statutory rate for the three and nine months ended September 30, 2011, is primarily attributable to tax expense associated with the accrual of the Algerian exceptional profits tax (which is non-deductible for Algerian income tax purposes), U.S. tax on foreign income, foreign tax rates in excess of the U.S. statutory rate and valuation allowances on foreign losses. The decrease from the 35% statutory rate for the nine months ended September 30, 2011, is also attributable to items resulting from business acquisitions.The decrease from the 35% statutory rate for the three and nine months ended September 30, 2011, is partially offsetby U.S. income tax benefits associated with foreign losses andthe restructuring of foreign operations, state income taxes,and other items.

The increase from the 35% statutory rate for the three and nine months ended September 30, 2010, is primarily attributable to tax expense associated with the accrual of the Algerian exceptional profits tax, U.S. tax on foreign income, foreign tax ratesin excess of the U.S. statutory rate, valuation allowances on foreign losses, and unfavorable resolution of tax contingencies. The increase from the 35% statutory rate for the three and nine months ended September 30,2010, is partially reduced by U.S. income tax benefits associated with foreign losses, the federal manufacturing deduction, and other items.