Taxes (Tables)

12 Months Ended

Dec. 31, 2013



	Year ended December 31
	2013		2012			2011
Taxes on income
U.S. federal
Current	$	15	$	1,703		$	1,893
Deferred	1,128		673			877
State and local
Current	120		652			596
Deferred	74		(145		)	41
Total United States	1,337		2,883			3,407
International
Current	12,296		15,626			16,548
Deferred	675		1,487			671
Total International	12,971		17,113			17,219
Total taxes on income	$	14,308	$	19,996		$	20,626

Reconciliation between the U.S. statutory federal income tax rate and the company's effective income tax rate

The reconciliation between the U.S. statutory federal income tax rate and the company’s effective income tax rate is detailed in the following table:



	Year ended December 31
	2013			2012			2011
U.S. statutory federal income tax rate	35.0		%	35.0		%	35.0		%
Effect of income taxes from international operations at rates different from the U.S. statutory rate	5.1			7.8			7.5
State and local taxes on income, net of U.S. federal income tax benefit	0.6			0.6			0.9
Prior-year tax adjustments	(0.8	)		(0.2	)		(0.1	)
Tax credits	(0.5	)		(0.4	)		(0.4	)
Effects of changes in tax rates	—			0.3			0.5
Other	0.5			0.1			(0.1	)
Effective tax rate	39.9		%	43.2		%	43.3		%

Composition of deferred tax balances

The reported deferred tax balances are composed of the following:



	At December 31
	2013			2012
Deferred tax liabilities
Properties, plant and equipment	$	25,936		$	24,295
Investments and other	2,272			2,276
Total deferred tax liabilities	28,208			26,571
Deferred tax assets
Foreign tax credits	(11,572		)	(10,817		)
Abandonment/environmental reserves	(6,279		)	(5,728		)
Employee benefits	(3,825		)	(5,100		)
Deferred credits	(2,768		)	(2,891		)
Tax loss carryforwards	(1,016		)	(738		)
Other accrued liabilities	(533		)	(381		)
Inventory	(358		)	(281		)
Miscellaneous	(1,439		)	(1,835		)
Total deferred tax assets	(27,790		)	(27,771		)
Deferred tax assets valuation allowance	17,171			15,443
Total deferred taxes, net	$	17,589		$	14,243

Classification of deferred taxes

At December 31, 2013 and 2012, deferred taxes were classified on the Consolidated Balance Sheet as follows:



	At December 31
	2013			2012
Prepaid expenses and other current assets	$	(1,341	)	$	(1,365	)
Deferred charges and other assets	(2,954		)	(2,662		)
Federal and other taxes on income	583			598
Noncurrent deferred income taxes	21,301			17,672
Total deferred income taxes, net	$	17,589		$	14,243

Changes to the Company's unrecognized tax benefits

The following table indicates the changes to the company’s unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011. The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. Interest and penalties are not included.



	2013			2012			2011
Balance at January 1	$	3,071		$	3,481		$	3,507
Foreign currency effects	(58		)	4			(2		)
Additions based on tax positions taken in current year	276			543			469
Additions/reductions resulting from current-year asset acquisitions/sales	—			—			(41		)
Additions for tax positions taken in prior years	1,164			152			236
Reductions for tax positions taken in prior years	(176		)	(899		)	(366		)
Settlements with taxing authorities in current year	(320		)	(138		)	(318		)
Reductions as a result of a lapse of the applicable statute of limitations	(109		)	(72		)	(4		)
Balance at December 31	$	3,848		$	3,071		$	3,481

Taxes other than on income

Taxes Other Than on Income



	Year ended December 31
	2013		2012		2011
United States
Excise and similar taxes on products and merchandise	$	4,792	$	4,665	$	4,199
Import duties and other levies	4		1		4
Property and other miscellaneous taxes	1,036		782		726
Payroll taxes	255		240		236
Taxes on production	333		328		308
Total United States	6,420		6,016		5,473
International
Excise and similar taxes on products and merchandise	3,700		3,345		3,886
Import duties and other levies	41		106		3,511
Property and other miscellaneous taxes	2,486		2,501		2,354
Payroll taxes	168		160		148
Taxes on production	248		248		256
Total International	6,643		6,360		10,155
Total taxes other than on income	$	13,063	$	12,376	$	15,628

- 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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