Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Reconciliation of Statutory U.S. Corporate Federal Income Tax Rate to Effective Income Tax Rate

The following table presents a reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective income tax rate:

		2012		2011		2010
U.S. federal income tax rate		35.00	%	35.00	%	35.00	%
Changes in rate due to:
	U.S. State and local taxes	0.64		0.67		1.14
	U.S. tax benefit on foreign dividends	(1.49	)	(0.96	)	0.17
	Taxes on non-U.S. earnings	(9.70	)	(10.88	)	(8.13	)
	PPG dividends paid to the ESOP	(0.18	)	(0.41	)	(0.57	)
	U.S. tax incentives	(1.92	)	(1.79	)	(1.75	)
	Significant audit settlements	—		(1.42	)	—
	Other	(1.45	)	1.07		(1.18	)
	One-time charge, tax law change	—		—		6.64
	Effective income tax rate	20.90	%	21.28	%	31.32	%

Components of Income Tax Expense

The following table gives details of income tax expense reported in the accompanying consolidated statement of income.

(Millions)		2012			2011			2010
Current income tax expense
	U.S. federal	$	228		$	107		$	24
	Non-U.S.	190			164			162
	U.S. State and local	15			8			10
	Total current income tax	433			279			196
Deferred income tax expense
	U.S. federal	(150		)	(3		)	65
	Non-U.S.	(48		)	(17		)	2
	U.S. State and local	(14		)	1			11
	One-time charge, tax law change	—			—			73
	Total deferred income tax	(212		)	(19		)	151
	Total	$	221		$	260		$	347

Net deferred income tax assets and liabilities

Net deferred income tax assets and liabilities as of December 31, 2012 and 2011, were as follows:

(Millions)		2012			2011
Deferred income tax assets related to
	Employee benefits	$	1,000		$	963
	Contingent and accrued liabilities	598			524
	Operating loss and other carry-forwards	223			183
	Inventories	21			29
	Property	5			3
	Derivatives	38			95
	Other	41			97
	Valuation allowance	(138		)	(134		)
	Total	1,788			1,760
Deferred income tax liabilities related to
	Property	405			500
	Intangibles	452			460
	Employee benefits	69			64
	Other	3			63
	Total	929			1,087
	Deferred income tax assets – net	$	859		$	673

Unrecognized Tax Benefits

The activity in the accrued liability for unrecognized tax benefits for the three years ended December 31, 2012 is as follows:

(Millions)	2012			2011			2010
Balance at January 1	$	107		$	111		$	108
Additions based on tax positions related to the current year	12			15			7
Additions for tax positions of prior years	2			17			15
Reductions for tax positions of prior years	(12		)	(19		)	(5		)
Pre-acquisition unrecognized tax benefits	2			—			—
Reductions for expiration of the applicable statute of limitations	(6		)	(7		)	(6		)
Settlements	(23		)	(8		)	(2		)
Currency	—			(2		)	(6		)
Balance at December 31	$	82		$	107		$	111