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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
The (Provision for) Benefit from Income Taxes
Our provision for income taxes for the last three fiscal years consists of:
 
($ in millions)
2013
 
2012
 
2011
Current
-U.S. Federal
$
(139
)
 
$
6

 
$
53

 
-U.S. State
(17
)
 
(8
)
 
—

 
-Non-U.S.
(44
)
 
(34
)
 
(55
)
 
 
(200
)
 
(36
)
 
(2
)
 
 
 
 
 
 
 
Deferred
-U.S. Federal
(68
)
 
(211
)
 
(116
)
 
-U.S. State
(10
)
 
(30
)
 
(10
)
 
-Non-U.S.
7

 
(1
)
 
(30
)
 
 
(71
)
 
(242
)
 
(156
)
 
 
$
(271
)
 
$
(278
)
 
$
(158
)
Unrecognized Tax Benefits Reconciliation
The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2011 to the end of 2013:
($ in millions)
Amount
Unrecognized tax benefit at beginning of 2011
$
39

Change attributable to tax positions taken during a prior period
(10
)
Change attributable to withdrawal of tax positions previously taken or expected to be taken
(6
)
Change attributable to tax positions taken during the current period
19

Decrease attributable to lapse of statute of limitations
(3
)
Unrecognized tax benefit at year-end of 2011
39

Change attributable to tax positions taken during the current period
12

Decrease attributable to settlements with taxing authorities
(20
)
Decrease attributable to lapse of statute of limitations
(2
)
Unrecognized tax benefit at year-end of 2012
29

Change attributable to tax positions taken during the current period
8

Decrease attributable to settlements with taxing authorities
(2
)
Decrease attributable to lapse of statute of limitations
(1
)
Unrecognized tax benefit at year-end of 2013
$
34
Schedule of Deferred Tax Assets and Liabilities
We had the following total deferred tax assets and liabilities at year-end 2013 and year-end 2012:
 
($ in millions)
At Year-End 2013
 
At Year-End 2012
Deferred tax assets
$
926

 
$
950

Deferred tax liabilities
(60
)
 
(25
)
Net deferred taxes
$
866

 
$
925



The following table details the composition of our net deferred tax balances at year-end 2013 and year-end 2012:
 
($ in millions)
Balance Sheet Caption
 
At Year-End 2013
 
At Year-End 2012
Current deferred taxes, net
 
$
252

 
$
280

Long-term deferred taxes, net
 
647

 
676

Current liabilities, other
 
(19
)
 
(13
)
Long-term liabilities, other
 
(14
)
 
(18
)
Net deferred taxes
 
$
866

 
$
925


The following table shows the tax effect of each type of temporary difference and carry-forward that gave rise to a significant portion of our deferred tax assets and liabilities as of year-end 2013 and year-end 2012:
 
($ in millions)
At Year-End 2013
 
At Year-End 2012
Employee benefits
$
340

 
$
321

Net operating loss carry-forwards
293

 
294

Tax credits
273

 
328

Reserves
61

 
63

Frequent guest program
30

 
43

Self-insurance
23

 
19

Deferred income
23

 
4

Joint venture interests
(23
)
 
(11
)
Property, equipment, and intangible assets
(37
)
 
(14
)
Other, net
48

 
23

Deferred taxes
1,031

 
1,070

Less: valuation allowance
(165
)
 
(145
)
Net deferred taxes
$
866

 
$
925


 
Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations
The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years:
 
2013
 
2012
 
2011
U.S. statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
U.S. state income taxes, net of U.S. federal tax benefit
2.6

 
2.6

 
2.3

Nondeductible expenses
0.5

 
0.3

 
1.8

Non-U.S. income
(5.7
)
 
(3.9
)
 
(0.9
)
Change in valuation allowance (1)
0.3

 
(0.2
)
 
8.9

Tax credits
(0.4
)
 
(0.4
)
 
(1.0
)
Other, net
(2.1
)
 
(0.7
)
 
(1.7
)
Effective rate
30.2
 %
 
32.7
 %
 
44.4
 %
 
(1) 
Primarily for the 2011 additional impairment of certain deferred tax assets transferred to MVW, as discussed earlier in this footnote.