Income Taxes

The provision for income taxes differs from the amount of income tax determined by applying the U.S. statutory federal income tax rate to pre-tax income as a result of the following items:



	Three Months Ended						Nine Months Ended
	September 30						September 30
	2013			2012			2013			2012
U.S. statutory rate at 35%	$	68		$	81		$	174		$	196
Tax on foreign income	(21		)	(23		)	(52		)	(55		)
Valuation allowance	(1		)	45			—			48
Tax law changes	18			2			18			2
Other items, net	3			(216		)	6			(219		)
Income tax provision	$	67		$	(111	)	$	146		$	(28	)

Tax law changes for the three and nine months ended September 30, 2013 include charges of $9 to reduce the value of the Company's deferred tax assets due to a recently enacted reduction in U.K. corporate income tax rates and $9 to recognize the impact of a tax law change in Greece. In the third quarter of 2013, the government of Greece enacted a tax law change which eliminates a company's ability to maintain tax-free reserves as of January 1, 2015. The law is unclear whether tax-free reserves that remain undistributed at January 1, 2015 will be automatically subjected to taxation and the applicable rate, if any, that would apply. A Committee has been established to review the law and to provide interpretive guidance. Based on the Company’s current interpretation of the law, it has recognized a liability for potential taxation of its tax-free reserves. When additional guidance is issued, it is possible that the Company may be required to adjust its reserve.

Other items for the three and nine months ended September 30, 2012 include a net benefit of $169 primarily related to the recognition of previously unrecognized U.S. foreign tax credits. In the third quarter of 2012, the Company committed to a formal repatriation plan which allowed it to claim these credits on its 2012 income tax return and determined that it would amend its 2003 U.S. income tax return to claim foreign taxes paid as a credit rather than as a tax deduction.