Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Provision (benefit) for income taxes calculated based on components of earnings (loss) before income taxes

	2012		2011			2010
Continuing operations
U.S.	$	32	$	23		$	(115	)
Non-U.S.		296		(419	)		541
	$	328	$	(396	)	$	426

	2012			2011			2010
Discontinued operations
U.S.	$	—		$	—		$	—
Non-U.S.		(5	)		(2	)		(296	)
	$	(5	)	$	(2	)	$	(296	)

Provision for income taxes

	2012			2011			2010
Current:
U.S.	$	(4	)	$	(12	)	$	—
Non-U.S.		117			139			141
		113			127			141
Deferred:
U.S.		8			11			(10	)
Non-U.S.		(13	)		(53	)		(2	)
		(5	)		(42	)		(12	)
Total:
U.S.		4			(1	)		(10	)
Non-U.S.		104			86			139
Total for continuing operations		108			85			129
Total for discontinued operations		(3	)		(3	)		4
	$	105		$	82		$	133

Reconciliation of the provision for income taxes

	2012			2011			2010
Tax provision on pretax earnings (loss) from continuing operations at statutory U.S. Federal tax rate	$	115		$	(139	)	$	149
Increase (decrease) in provision for income taxes due to:
Differences in income taxes on foreign earnings, losses and remittances					(13	)		(46	)
Goodwill impairment					224
Intraperiod tax allocation—U.S.								(8	)
Changes in valuation allowance		(7	)		15			11
Tax audits and settlements		(1	)		3			21
Other items		1			(5	)		2
Provision for income taxes	$	108		$	85		$	129

Significant components of deferred tax assets and liabilities and deferred taxes included in the Consolidated Balance Sheets

  Significant components of the Company's deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Accrued postretirement benefits	$	89		$	90
Asbestos-related liabilities		161			164
Foreign tax credit		354			338
Operating and capital loss carryovers		486			438
Other credit carryovers		46			51
Accrued liabilities		95			118
Pension liability		237			224
Other		97			70
Total deferred tax assets		1,565			1,493
Deferred tax liabilities:
Property, plant and equipment		120			121
Exchangeable notes		19			23
Intangibles		13
Other		83			44
Total deferred tax liabilities		235			188
Valuation allowance		(1,171	)		(1,176	)
Net deferred taxes	$	159		$	129

        Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2012 and 2011 as follows:

	2012			2011
Prepaid expenses	$	62		$	48
Other assets		284			295
U.S. and foreign income taxes		(5	)		(2	)
Deferred taxes		(182	)		(212	)
Net deferred taxes	$	159		$	129

Reconciliation of the gross unrecognized tax benefits

	2012			2011			2010
Balance at January 1	$	125		$	143		$	120
Additions and reductions for tax positions of prior years		8			(15	)		26
Additions based on tax positions related to the current year		7			30			5
Additions for tax positions of prior years on acquisitions								12
Reductions due to the lapse of the applicable statute of limitations		(21	)		(8	)		(1	)
Reductions due to settlements		(26	)		(18	)		(13	)
Foreign currency translation		4			(7	)		(6	)
Balance at December 31	$	97		$	125		$	143
Unrecognized tax benefits, which if recognized, would impact the Company's effective income tax rate	$	89		$	114		$	125
Accrued interest and penalties at December 31	$	33		$	49		$	36
Interest and penalties included in tax expense for the years ended December 31	$	(6	)	$	18		$	4