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Income Taxes
9 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective tax rate on pretax earnings for the nine months ended September 30, 2012 was approximately 24 percent compared to approximately 26 percent for the first nine months of 2011. The effective tax rate for the nine months ended September 30, 2012 includes tax benefits of $60 million or 37.7 percent on the $159 million charge for environmental remediation costs, $45 million or 21.4 percent on the $208 million business restructuring charge, $2 million or 28.6 percent on the acquisition-related expenses of $6 million, $1 million or 7.5 percent on costs related to the separation and merger of $13 million. The separation and merger of PPG's commodity chemicals business with Georgia Gulf (Refer to Note 20, "Separation and Merger Transaction") is expected to be generally tax free to PPG, as a result of this, the deductibility for U.S. federal tax purposes of the costs associated with the transaction is expected to be limited. We currently estimate that approximately 20 percent of the separation and merger costs incurred to date will be tax deductible. The effective rate for the first nine months of 2011 included the impact of the non-taxable bargain purchase gain resulting from the Equa-Chlor acquisition. The effective tax rate on the remaining pre-tax earnings was approximately 25 percent for the first nine months of 2012 compared to approximately 26 percent for the first nine months of 2011.
The Company files federal, state and local income tax returns in numerous domestic and foreign jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. The Company is no longer subject to examinations by tax authorities in any major tax jurisdiction for years before 2003. Additionally, the Internal Revenue Service (“IRS”) has completed its examination of the Company’s U.S. federal income tax
returns filed for years through 2009. The IRS is currently conducting its examination of the Company's U.S. federal income tax return for 2010, which is expected to be completed during 2013.