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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of income before income taxes and provision for income taxes

(in millions)	2013			2012			2011
Income before income taxes:
United States	$	138		$	91		$	158
Foreign	409			510			435
Total	$	547		$	601		$	593
Provision for income taxes:
Current tax expense
US federal	$	5		$	3		$	9
State and local	3			1			2
Foreign	106			166			141
Total current	$	114		$	170		$	152
Deferred tax expense (benefit)
US federal	$	11		$	(5	)	$	10
State and local	(2		)	2			3
Foreign	21			—			5
Total deferred	$	30		$	(3	)	$	18
Total provision for income taxes	$	144		$	167		$	170

Schedule of tax effects of temporary differences between financial reporting basis and tax basis of assets and liabilities

(in millions)	2013			2012
Deferred tax assets attributable to:
Employee benefit accruals	$	23		$	19
Pensions and postretirement plans	24			65
Derivative contracts	20			10
Net operating loss carryforwards	16			23
Foreign tax credit carryforwards	11			24
Other	42			53
Gross deferred tax assets	$	136		$	194
Valuation allowance	(3		)	(9		)
Net deferred tax assets	$	133		$	185
Deferred tax liabilities attributable to:
Property, plant and equipment	$	200		$	202
Identified intangibles	57			59
Gross deferred tax liabilities	$	257		$	261
Net deferred tax liabilities	$	124		$	76

Schedule of reconciliation of US federal statutory tax rate to effective tax rate

	2013		2012		2011
Provision for tax at US statutory rate	35.00	%	35.00	%	35.00	%
Tax rate difference on foreign income	(5.28	)	(3.86	)	(3.62	)
State and local taxes — net	0.35		0.79		0.58
Change in valuation allowance — foreign tax credits	—		—		(0.62	)
Reversal of Korea valuation allowance	—		(2.52	)	—
Reversal of Chile valuation allowance	—		(0.06	)	(0.09	)
Non-deductible National Starch acquisition costs	—		0.04		0.04
NAFTA Award	—		—		(3.45	)
Other items — net	(3.74	)	(1.61	)	0.83
Provision at effective tax rate	26.33	%	27.78	%	28.67	%

Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest and penalties

(in millions)	2013			2012
Balance at January 1	$	37		$	35
Additions for tax positions related to prior years	5			3
Reductions for tax positions related to prior years	(6		)	—
Additions based on tax positions related to the current year	1			6
Reductions related to a lapse in the statute of limitations	(3		)	(7		)
Balance at December 31	$	34		$	37

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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