Income taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income before income taxes

Income before income taxes

	U.S.		Non-U.S.		Total
2012	$	319	$	1,616	$	1,935
2011	1,791		1,164		2,955
2010	3,769		782		4,551

Provision (benefit) for income taxes

Provision (benefit) for income taxes

	U.S. Federal			Non-U.S.			U.S. State			Total
2012:
Current	$	(43	)	$	156		$	(2	)	$	111
Deferred	—			65			—			65
Total	$	(43	)	$	221		$	(2	)	$	176
2011:
Current	$	692		$	138		$	8		$	838
Deferred	(154		)	24			11			(119		)
Total	$	538		$	162		$	19		$	719
2010:
Current	$	1,401		$	92		$	18		$	1,511
Deferred	(188		)	(2		)	2			(188		)
Total	$	1,213		$	90		$	20		$	1,323

Principal reconciling items from income tax computed at statutory federal rate

Principal reconciling items from income tax computed at the statutory federal rate follow:

	2012			2011			2010
Computed tax at statutory rate	$	677		$	1,034		$	1,593
Non-U.S. effective tax rates	(345		)	(245		)	(184		)
U.S. tax benefit for manufacturing	(158		)	(31		)	(63		)
Impact of changes to uncertain tax positions	(88		)	—			—
Non-deductible expenses	42			27			10
U.S. R&D tax credit	—			(58		)	(54		)
Other	48			(8		)	21
Total provision for income taxes	$	176		$	719		$	1,323

Primary components of deferred income tax assets and liabilities

The primary components of deferred income tax assets and liabilities were as follows:

	December 31,
	2012			2011
Deferred income tax assets:
Inventories and related reserves	$	734		$	913
Deferred loss and tax credit carryforwards	382			400
Stock-based compensation	366			357
Postretirement benefit costs recognized in AOCI	357			431
Accrued expenses	331			322
Other	209			122
	2,379			2,545
Less valuation allowance	(221		)	(178		)
	2,158			2,367
Deferred income tax liabilities:
Acquisition-related intangibles and fair-value adjustments	(921		)	(1,030		)
Accrued retirement costs (defined benefit and retiree health care)	(243		)	(180		)
Property, plant and equipment	(131		)	(141		)
International earnings	(102		)	(92		)
Other	(11		)	(36		)
	(1,408		)	(1,479		)
Net deferred income tax asset	$	750		$	888

Deferred tax assets and liabilities

The deferred income tax assets and liabilities based on tax jurisdictions are presented on the Consolidated balance sheets as follows:

	December 31,
	2012			2011
Current deferred income tax assets	$	1,044		$	1,174
Noncurrent deferred income tax assets	280			321
Current deferred income tax liabilities	(2		)	—
Noncurrent deferred income tax liabilities	(572		)	(607		)
Net deferred income tax asset	$	750		$	888

Summary of income tax contingencies

The changes in the total amounts of uncertain tax positions are summarized as follows:

	2012			2011			2010
Balance, January 1	$	210		$	103		$	56
Additions based on tax positions related to the current year	12			15			12
Additions from the acquisition of National	—			132			—
Additions for tax positions of prior years	45			3			50
Reductions for tax positions of prior years	(92		)	(39		)	(12		)
Settlements with tax authorities	39			(4		)	(3		)
Expiration of the statute of limitations for assessing taxes	(30		)	—			—
Balance, December 31	$	184		$	210		$	103
Interest income (expense) recognized in the year ended December 31	$	32		$	1		$	(2	)
Interest receivable (payable) as of December 31	$	8		$	(3	)	$	5