Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Data from Continuing Operations

Income tax data from our continuing operations is as follows (in millions):

	Year Ended December 31,
	2013			2012			2011
Pretax income
U.S.	$	462		$	356		$	165
Foreign		366			262			260
	$	828		$	618		$	425
Provision (benefit) for income tax
Current:
U.S. federal	$	77		$	26		$	(215	)
State and local		3			22			(21	)
Foreign		118			118			88
		198			166			(148	)
Deferred:
U.S. federal		69			(25	)		62
State and local		13			(2	)		(11	)
Foreign		(17	)		9			22
		65			(18	)		73
	$	263		$	148		$	(75	)

Composition of Net Deferred Tax Balances

Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The composition of net deferred tax balances were as follows (in millions):

	December 31,
	2013			2012
Current deferred tax assets	$	211		$	290
Long-term deferred tax assets		591			660
Current deferred tax liabilities (1)		(17	)		(27	)
Long-term deferred tax liabilities		(48	)		(85	)
Deferred income taxes	$	737		$	838

(1) Included in the accrued taxes and other line item in the consolidated balance sheets.

Deferred Tax Assets (Liabilities)

The tax effect of the temporary differences and carryforward items that give rise to deferred tax assets (liabilities) were as follows (in millions):

	December 31,
	2013			2012
Plant, property and equipment	$	(41	)	$	(43	)
Intangibles		(51	)		(70	)
Inventories		52			73
Deferred gains		338			366
Investments		225			208
Receivables (net of reserves)		(22	)		47
Accrued expenses and other reserves		140			182
Employee benefits		84			81
Net operating loss, capital loss and tax credit carryforwards		270			223
Other		41			22
		1,036			1,089
Less valuation allowance		(299	)		(251	)
Deferred income taxes	$	737		$	838

Reconciliation of Tax Provision

A reconciliation of our tax provision at the U.S. statutory rate to the provision for income tax as reported is as follows (in millions):

	Year Ended December 31,
	2013			2012			2011
Tax provision at U.S. statutory rate	$	290		$	216		$	149
U.S. state and local income taxes		19			6			(19	)
Net U.S. tax on repatriation of foreign earnings		5			3			25
Foreign tax rate differential		(81	)		(77	)		(98	)
Foreign withholding tax		26			34			22
Tax/(benefit) on capital gains		—			(1	)		334
Change in tax law		(31	)		—			—
Change in asset basis		(2	)		(13	)		(130	)
Change in uncertain tax positions		20			15			22
Tax settlements		—			(1	)		(25	)
Tax/(benefits) on asset dispositions		(7	)		(41	)		(51	)
Change in valuation allowances		48			21			(304	)
Other		(24	)		(14	)		—
Provision for income tax (benefit)	$	263		$	148		$	(75	)

Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in millions):

	Year Ended December 31,
	2013			2012			2011
Beginning of year	$	258		$	221		$	585
Additions based on tax positions related to the current year		21			14			20
Additions for tax positions of prior years		40			29			33
Settlements with tax authorities		—			(4	)		(407	)
Reductions for tax positions in prior years		(19	)		(1	)		(6	)
Reductions due to the lapse of applicable statutes of limitations		(39	)		(1	)		(4	)
End of year	$	261		$	258		$	221