2013 | 2012 | 2011 | |||||||
Current tax expense (benefit) on continuing operations: | |||||||||
U.S. federal | $ | 160 | $ | 121 | $ | 353 | |||
U.S. state and local | 23 | 16 | (20 | ) | |||||
International | 677 | 663 | 482 | ||||||
Total current tax expense on continuing operations | 860 | 800 | 815 | ||||||
Deferred tax expense (benefit) on continuing operations: | |||||||||
U.S. federal | (193 | ) | (105 | ) | (143 | ) | |||
U.S. state and local | (65 | ) | (46 | ) | (4 | ) | |||
International | 24 | (33 | ) | (21 | ) | ||||
Total deferred tax (benefit) expense on continuing operations | (234 | ) | (184 | ) | (168 | ) | |||
Provision for income taxes on continuing operations | $ | 626 | $ | 616 | $ | 647 |
2013 | 2012 | |||||||||||
Asset | Liability | Asset | Liability | |||||||||
Depreciation | $ | — | $ | 1,707 | $ | — | $ | 1,696 | ||||
Accrued employee benefits | 3,754 | 512 | 5,198 | 167 | ||||||||
Other accrued expenses | 818 | 87 | 723 | 65 | ||||||||
Inventories | 275 | 151 | 231 | 105 | ||||||||
Unrealized exchange gains/losses | 65 | — | — | 37 | ||||||||
Tax loss/tax credit carryforwards/backs | 2,615 | — | 2,733 | — | ||||||||
Investment in subsidiaries and affiliates | 189 | 245 | 78 | 92 | ||||||||
Amortization of intangibles | 109 | 1,372 | 58 | 1,335 | ||||||||
Other | 316 | 159 | 244 | 265 | ||||||||
Valuation allowance | (1,764 | ) | — | (1,914 | ) | — | ||||||
$ | 6,377 | $ | 4,233 | $ | 7,351 | $ | 3,762 | |||||
Net deferred tax asset | $ | 2,144 | $ | 3,589 |
2013 | 2012 | 2011 | ||||
Statutory U.S. federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % |
Exchange gains/losses1 | 0.8 | 0.1 | (0.8 | ) | ||
Domestic operations | (3.2 | ) | (2.3 | ) | (2.5 | ) |
Lower effective tax rates on international operations-net2 | (12.3 | ) | (10.9 | ) | (11.6 | ) |
Tax settlements | (0.2 | ) | (2.0 | ) | (0.2 | ) |
Sale of a business | — | — | (2.3 | ) | ||
U.S. research & development credit 2 | (2.2 | ) | — | (0.9 | ) | |
17.9 | % | 19.9 | % | 16.7 | % |
1. | Principally reflects the impact of non-taxable exchange gains and losses resulting from remeasurement of foreign currency-denominated monetary assets and liabilities. Further information about the company's foreign currency hedging program is included in Note 20 under the heading Foreign Currency Risk. |
2. | On January 2, 2013, U.S. tax law was enacted which extended through 2013 (and retroactive to 2012) several expired or expiring temporary business tax provisions. In accordance with GAAP, this extension was taken into account in the quarter in which the legislation was enacted (i.e. first quarter 2013). |
2013 | 2012 | 2011 | |||||||
U.S. (including exports) | $ | 962 | $ | 640 | $ | 718 | |||
International | 2,527 | 2,448 | 3,161 | ||||||
$ | 3,489 | $ | 3,088 | $ | 3,879 |
2013 | 2012 | 2011 | |||||||
Total unrecognized tax benefits as of January 1 | $ | 805 | $ | 800 | $ | 693 | |||
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken during the prior period | (28 | ) | (94 | ) | (82 | ) | |||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken during the prior period | 76 | 73 | 170 | ||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken during the current period | 92 | 78 | 79 | ||||||
Amount of decreases in the unrecognized tax benefits relating to settlements with taxing authorities | (19 | ) | (29 | ) | (6 | ) | |||
Reduction to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (6 | ) | (10 | ) | (32 | ) | |||
Exchange gain (loss) | (19 | ) | (13 | ) | (22 | ) | |||
Total unrecognized tax benefits as of December 31 | $ | 901 | $ | 805 | $ | 800 | |||
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ | 778 | $ | 693 | $ | 683 | |||
Total amount of interest and penalties recognized in the Consolidated Income Statements | $ | 16 | $ | 4 | $ | 7 | |||
Total amount of interest and penalties recognized in the Consolidated Balance Sheets | $ | 122 | $ | 116 | $ | 113 |