Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Components of Earnings Before Income Taxes

The components of earnings before income taxes were:

	Year Ended December 31,
	2012		2011		2010
	(in millions)
U.S.	$	829.2	$	690.0	$	103.3
Non-U.S.	704.1		609.7		67.5
Total	$	1,533.3	$	1,299.7	$	170.8

Provision for Income Taxes

The provision for income taxes consists of the following:

	Year Ended December 31,
	2012			2011			2010
	(in millions)
Current
U.S. federal	$	388.5		$	307.7		$	287.9
U.S. state	20.4			32.7			32.8
Non-U.S.	110.2			90.1			94.3
Total current	519.1			430.5			415.0
Deferred
U.S. federal	(88.6		)	(59.8		)	(244.2		)
U.S. state	0.1			(18.2		)	13.9
Non-U.S.	0.2			9.1			(18.8		)
Total deferred	(88.3		)	(68.9		)	(249.1		)
Total	$	430.8		$	361.6		$	165.9

Reconciliation of the US Federal Statutory Tax Rate to Effective Tax Rate

The reconciliations of the U.S. federal statutory tax rate to the combined effective tax rate follow:

	2012		2011		2010
Statutory rate of tax expense	35.0	%	35.0	%	35.0	%
State taxes, net of U.S. tax benefit	1.1		1.6		20.4
Tax differential on foreign earnings	(8.8	)	(9.1	)	28.4
Other credits (R&D)	(0.9	)	(2.0	)	(15.9	)
Tax audit settlements/adjustments	1.3		1.5		6.0
Legal settlement	—		—		18.8
Other	0.4		0.8		4.4
Effective tax rate	28.1	%	27.8	%	97.1	%

Significant Components of Deferred Tax Assets and Liabilities

Temporary differences and carryforwards/carrybacks which give rise to a significant portion of deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows:

	2012			2011
	(in millions)
Deferred tax assets
Net operating loss carryforwards/carrybacks	$	66.6		$	44.7
Accrued expenses	114.4			105.6
Capitalized expenses	182.3			136.2
Deferred compensation	41.7			35.7
Medicare, Medicaid and other accrued health care rebates	85.0			69.0
Postretirement medical benefits	17.8			16.1
Capitalized intangible assets	45.0			49.9
Deferred revenue	22.3			17.2
Inventory reserves and adjustments	18.7			14.2
Share-based compensation awards	90.2			86.6
Unbilled costs	23.0			25.5
Pension plans	66.5			67.7
All other	42.8			50.0
	816.3			718.4
Less: valuation allowance	(22.6		)	(14.9		)
Total deferred tax assets	793.7			703.5
Deferred tax liabilities
Depreciation	9.6			15.5
Developed and core technology intangible assets	227.3			188.3
In-process R&D	100.8			107.6
Total deferred tax liabilities	337.7			311.4
Net deferred tax assets	$	456.0		$	392.1

Reconciliation of Unrecognized Tax Benefits

A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of 2012, 2011 and 2010 is as follows:

	2012			2011			2010
	(in millions)
Balance, beginning of year	$	53.0		$	32.5		$	39.3
Gross increase as a result of positions taken in a prior year	20.9			21.8			15.0
Gross decrease as a result of positions taken in a prior year	(12.7		)	(8.5		)	(13.4		)
Gross increase as a result of positions taken in current year	3.4			16.9			10.5
Gross decrease as a result of positions taken in current year	—			(6.0		)	(4.3		)
Decreases related to settlements	(2.7		)	(3.7		)	(14.6		)
Balance, end of year	$	61.9		$	53.0		$	32.5

Tax Years Remaining Subject to Examination by Taxing Authorities

The following tax years remain subject to examination:

Major Jurisdictions	Open Years
U.S. Federal	2005 - 2011
California	2000 - 2011
Brazil	2007 - 2011
Canada	2004 - 2011
France	2010 - 2011
Germany	2006 - 2011
Italy	2007 - 2011
Ireland	2005 - 2011
Spain	2008 - 2011
United Kingdom	2010 - 2011