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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective tax rate on pretax income from continuing operations for the six months ended June 30, 2013 was approximately 23 percent and 18 percent for the first six months of 2013 and 2012, respectively. The effective tax rate on pretax income from continuing operations for the six months ended June 30, 2013 includes tax benefits of $4 million or 37.4 percent on environmental remediation; $5 million or 26.7 percent on the settlement loss related to certain legacy pension plans and $8 million or 28.5 percent on certain acquisition-related costs. The tax rate for the first six months of 2013 also includes an after-tax benefit of $10 million for the retroactive impact of U.S. tax law changes that were enacted in early 2013 and that were not included in previously reported 2012 earnings. The effective tax rate on the remaining pre-tax earnings from continuing operations was approximately 24 percent resulting in tax expense for the period of $209 million.
The effective tax rate on pretax earnings from continuing operations for the six months ended June 30, 2012 included tax benefits of $60 million or 37.7 percent for estimated environmental remediation costs primarily at sites in New Jersey, $45 million or 21.4 percent for business restructuring charges and $2 million or 28.6 percent for acquisition-related expenses stemming from the acquisitions of Dyrup in Europe and Colpisa in Latin America. The effective tax rate on the remaining pre-tax earnings from continuing operations was approximately 23 percent resulting in tax expense of $174 million.
The effective tax rate on pretax income from discontinued operations for the six months ended June 30, 2013 was approximately 0.1 percent. The effective tax rate for the six months ended June 30, 2013 includes tax benefits of $1 million or 20 percent related to PPG costs associated with the Transaction. The separation and merger of PPG's commodity chemicals business with a subsidiary of Georgia Gulf (See Note 5) was generally tax free to PPG, as a result of this, the deductibility for U.S. federal tax purposes of the costs associated with the Transaction is expected to be limited. We currently estimate that approximately 20 percent of the associated costs incurred to date will be tax deductible. The effective tax rate on pretax income from discontinued operations for the six months ended June 30, 2012 was approximately 32 percent.
The Company files federal, state and local income tax returns in numerous domestic and foreign jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. The Company is no longer subject to examinations by tax authorities in any major tax jurisdiction for years before 2003. Additionally, the Internal Revenue Service (“IRS”) has completed its examination of the Company’s U.S. federal income tax returns filed for years through 2010. The IRS is currently conducting its examination of the Company's U.S. federal income tax return for 2011, which is expected to be completed during 2014.