Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Taxes on income

For financial reporting purposes, income before income taxes includes the following components: 

For the Years Ended December 31,
(In millions of dollars)	2013		2012			2011
Income before income taxes:
U.S.	$	407	$	398		$	121
Other	1,566		1,298			1,283
	$	1,973	$	1,696		$	1,404
The expense (benefit) for income taxes is comprised of:
Income taxes:
Current–
U.S. Federal	$	102	$	42		$	7
Other national governments	264		336			289
U.S. state and local	45		24			24
	411		402			320
Deferred–
U.S. Federal	12		(18		)	5
Other national governments	149		89			90
U.S. state and local	22		19			7
	183		90			102
Total income taxes	$	594	$	492		$	422

Deferred income tax assets and liabilities

The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:  

December 31,
(In millions of dollars)	2013		2012
Deferred tax assets:
Accrued expenses not currently deductible	$	570	$	589
Differences related to non-U.S. operations (a)	140		159
Accrued retirement & postretirement benefits—non-U.S. operations	—		107
Accrued retirement benefits U.S.	297		604
Net operating losses (b)	79		104
Income currently recognized for tax	74		75
Foreign tax credit carryforwards	157		224
Other	90		77
	$	1,407	$	1,939

Deferred tax liabilities:
Unrealized investment holding gains	$	2	$	2
Differences related to non-U.S. operations	112		107
Depreciation and amortization	273		245
Accrued retirement & postretirement benefits - non-U.S. operations	89		—
Other	3		4
	$	479	$	358

(a) Net of valuation allowances of $12 million in 2013 and $7 millionin 2012.

(b) Net of valuation allowances of $70 million in 2013 and $65 million in 2012.

December 31,
(In millions of dollars)	2013			2012
Balance sheet classifications:
Current assets	$	482		$	410
Other assets	$	626		$	1,223
Current liabilities	$	(18	)	$	(18	)
Other liabilities	$	(162	)	$	(34	)

U.S. Federal statutory income tax rate

A reconciliation from the U.S. Federal statutory income tax rate to the Company’s effective income tax rate is shown below.

For the Years Ended December 31,	2013		2012		2011
U.S. Federal statutory rate	35.0	%	35.0	%	35.0	%
U.S. state and local income taxes—net of U.S. Federal income tax benefit	2.1		1.9		1.6
Differences related to non-U.S. operations	(6.0	)	(6.1	)	(6.5	)
Other	(1.0	)	(1.8	)	—
Effective tax rate	30.1	%	29.0	%	30.1	%

Unrecognized tax benefits

Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011:

(In millions of dollars)	2013			2012			2011
Balance at January 1,	$	117		$	143		$	199
Additions, based on tax positions related to current year	16			26			7
Additions for tax positions of prior years	35			35			39
Reductions for tax positions of prior years	(7		)	(41		)	(91		)
Settlements	(3		)	(6		)	(6		)
Lapses in statutes of limitation	(30		)	(40		)	(5		)
Balance at December 31,	$	128		$	117		$	143