| Income Taxes |
| | | | | | | | | | | | | | | | 2012 | | 2011 | | 2010 | Income before income taxes | | | | | | U.S. | | $ | 3,234 |
| | $ | 3,964 |
| | $ | 4,008 |
| Foreign | | 5,070 |
| | 4,870 |
| | 4,224 |
| | | $ | 8,304 |
| | $ | 8,834 |
| | $ | 8,232 |
| Provision for income taxes | | | | | | Current: | U.S. Federal | $ | 911 |
| | $ | 611 |
| | $ | 932 |
| | Foreign | 940 |
| | 882 |
| | 728 |
| | State | 153 |
| | 124 |
| | 137 |
| | | 2,004 |
| | 1,617 |
| | 1,797 |
| Deferred: | U.S. Federal | 154 |
| | 789 |
| | 78 |
| | Foreign | (95 | ) | | (88 | ) | | 18 |
| | State | 27 |
| | 54 |
| | 1 |
| | | 86 |
| | 755 |
| | 97 |
| | | $ | 2,090 |
| | $ | 2,372 |
| | $ | 1,894 |
| Tax rate reconciliation | | | | | | U.S. Federal statutory tax rate | 35.0 | % | | 35.0 | % | | 35.0 | % | State income tax, net of U.S. Federal tax benefit | 1.4 |
| | 1.3 |
| | 1.1 |
| Lower taxes on foreign results | (6.9 | ) | | (8.7 | ) | | (9.4 | ) | Tax benefit related to tax court decision | (2.6 | ) | | — |
| | — |
| Acquisitions of PBG and PAS | — |
| | — |
| | (3.1 | ) | Other, net | (1.7 | ) | | (0.8 | ) | | (0.6 | ) | Annual tax rate | 25.2 | % | | 26.8 | % | | 23.0 | % | Deferred tax liabilities | | | | | | Investments in noncontrolled affiliates | $ | 48 |
| | $ | 41 |
| | | Debt guarantee of wholly owned subsidiary | 828 |
| | 828 |
| | | Property, plant and equipment | 2,424 |
| | 2,466 |
| | | Intangible assets other than nondeductible goodwill | 4,388 |
| | 4,297 |
| | | Other | 260 |
| | 184 |
| | | Gross deferred tax liabilities | 7,948 |
| | 7,816 |
| | | Deferred tax assets | | | | | | Net carryforwards | 1,378 |
| | 1,373 |
| | | Stock-based compensation | 378 |
| | 429 |
| | | Retiree medical benefits | 411 |
| | 504 |
| | | Other employee-related benefits | 672 |
| | 695 |
| | | Pension benefits | 647 |
| | 545 |
| | | Deductible state tax and interest benefits | 345 |
| | 339 |
| | | Long-term debt obligations acquired | 164 |
| | 223 |
| | | Other | 863 |
| | 822 |
| | | Gross deferred tax assets | 4,858 |
| | 4,930 |
| | | Valuation allowances | (1,233 | ) | | (1,264 | ) | | | Deferred tax assets, net | 3,625 |
| | 3,666 |
| | | Net deferred tax liabilities | $ | 4,323 |
| | $ | 4,150 |
| | |
| | | | | | | | | | | | | | 2012 |
| | 2011 |
| | 2010 |
| Deferred taxes included within: | | | | | | Assets: | | | | | | Prepaid expenses and other current assets | $ | 740 |
| | $ | 845 |
| | | Liabilities: | | | | | | Deferred income taxes | $ | 5,063 |
| | $ | 4,995 |
| | | | | | | | | Analysis of valuation allowances | | | | | | Balance, beginning of year | $ | 1,264 |
| | $ | 875 |
| | $ | 586 |
| Provision | 68 |
| | 464 |
| | 75 |
| Other (deductions)/additions | (99 | ) | | (75 | ) | | 214 |
| Balance, end of year | $ | 1,233 |
| | $ | 1,264 |
| | $ | 875 |
|
|
| Reserves Rollforward |
A rollforward of our reserves for all federal, state and foreign tax jurisdictions, is as follows: | | | | | | | | | | 2012 |
| | 2011 |
| Balance, beginning of year | $ | 2,167 |
| | $ | 2,022 |
| Additions for tax positions related to the current year | 275 |
| | 233 |
| Additions for tax positions from prior years | 161 |
| | 147 |
| Reductions for tax positions from prior years | (172 | ) | | (46 | ) | Settlement payments | (17 | ) | | (156 | ) | Statute of limitations expiration | (3 | ) | | (15 | ) | Translation and other | 14 |
| | (18 | ) | Balance, end of year | $ | 2,425 |
| | $ | 2,167 |
|
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