Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013



	Income before income taxes
	2013		2012		2011
Ireland	$	184	$	—	$	—
Foreign	1,700		1,251		1,553
Total income before income taxes	$	1,884	$	1,251	$	1,553

Income tax expense (benefit)



	Income tax expense (benefit)
	2013			2012			2011
Current
Ireland	$	17		$	—		$	—
United States
Federal	89			1			85
State and local	7			5			2
Foreign - other	244			130			186
Total current income tax expense	357			136			273

Deferred
Ireland	—			—			—
United States
Federal	(295		)	39			(2		)
State and local	(23		)	2			8
Foreign - other	(28		)	(146		)	(78		)
Total deferred income tax benefit	(346		)	(105		)	(72		)
Total income tax expense	$	11		$	31		$	201

Reconciliations of income taxes from the appropriate statutory rate

Reconciliations of income taxes from the Ireland national statutory rate of 25% in 2013, and the United States federal statutory rate of 35% in 2012 and 2011, to the consolidated effective income tax rate follow:



	2013		2012		2011
Income taxes at the applicable statutory rate	25.0	%	35.0	%	35.0	%

Ireland tax on trading income	(1.4	)%	—	%	—	%

United States operations
United States income (loss)	(2.8	)%	—	%	—	%
State and local income taxes	(0.5	)%	0.6	%	0.2	%
Deductible dividends	—	%	(0.7	)%	(0.5	)%
Deductible interest	(0.3	)%	(0.8	)%	(0.5	)%
Credit for research activities	(2.0	)%	—	%	(1.0	)%
Impact of U.S. Health Care Reform and Education Reconciliation Act and pre-funding on taxation associated with Medicare Part D	—	%	—	%	(0.9	)%
Other - net	2.1	%	2.7	%	0.5	%

Other foreign operations
United States foreign tax credit	(1.8	)%	(12.4	)%	(2.3	)%
Other foreign operations (earnings taxed at other than the applicable statutory tax rate)	(17.6	)%	(14.9	)%	(15.5	)%
Other foreign operations - other items	0.2	%	—	%	—	%

Worldwide operations
Adjustments to tax liabilities	(1.1	)%	(5.7	)%	(0.8	)%
Adjustments to valuation allowances	0.8	%	(1.3	)%	(1.3	)%
Effective income tax expense rate	0.6	%	2.5	%	12.9	%

Worldwide income tax payments

Worldwide income tax payments follow:



2013	$	272
2012	254
2011	191

Components of current and long-term deferred income taxes

Components of current and long-term deferred income taxes follow:



	2013						2012
	Current assets and liabilities			Long-term assets and liabilities			Current assets and liabilities			Long-term assets and liabilities
Accruals and other adjustments
Employee benefits	$	116		$	657		$	92		$	857
Depreciation and amortization	(2		)	(2,294		)	(3		)	(2,793		)
Other accruals and adjustments	497			368			495			297
Other items	—			—			—			145
United States federal income tax loss carryforwards	—			—			—			6
United States federal income tax credit carryforwards	—			161			—			156
United States state and local tax loss carryforwards and tax credit carryforwards	—			73			—			71
Other foreign tax loss carryforwards	—			1,708			—			1,591
Other foreign income tax credit carryforwards	—			63			—			67
Valuation allowance for income tax loss and income tax credit carryforwards	—			(1,738		)	(61		)	(1,521		)
Other valuation allowances	(34		)	(71		)	(7		)	(71		)
Total deferred income taxes	$	577		$	(1,073	)	$	516		$	(1,195	)

United States federal income tax loss carryforwards and income tax credit carryforwards and expiration dates

These carryforwards and their expiration dates are summarized below:



	2014 through 2018		2019 through 2023		2024 through 2028		2029 through 2033		Not subject to expiration		Valuation allowance
United States federal income tax loss carryforwards	$	1	$	—	$	—	$	—	$	—	$	—
United States federal income tax credit carryforwards	3		70		—		69		19		(51		)

United States state and local tax loss carryforwards and tax credit carryforwards and expiration dates

These carryforwards and their expiration dates are summarized below:



	2014 through 2018		2019 through 2023		2024 through 2028		2029 through 2033		Not subject to expiration		Valuation allowance
United States state and local assets for income tax loss carryforwards - net of federal tax effect	$	4	$	15	$	13	$	5	$	—	$	(15	)
United States state and local income tax credit carryforwards - net of federal tax effect	11		9		7		3		6		(16		)

Other foreign subsidiaries tax loss carryforwards and income tax credit carryforwards and expiration dates

These carryforwards and their expiration dates are summarized below:



	2014 through 2018		2019 through 2023		2024 through 2028		2029 through 2033		Not subject to expiration		Valuation allowance
Other foreign income tax loss carryforwards	$	136	$	130	$	48	$	18	$	7,654	$	—
Other foreign deferred income tax assets for income tax loss carryforwards	35		32		14		5		1,622		(1,646		)
Other foreign income tax credit carryforwards	39		13		2		—		9		(10		)

Summary of gross unrecognized income tax benefits

A summary of gross unrecognized income tax benefits follows:



	2013			2012			2011
Balance at January 1	$	444		$	236		$	224
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	13			—			—
Other increases	7			1			3
Other decreases, including currency translation	(7		)	—			(14		)
Balances related to acquired businesses	2			177			2
Increases as a result of positions taken during the current year	35			36			31
Decreases relating to settlements with tax authorities	(6		)	—			(2		)
Decreases as a result of a lapse of the applicable statute of limitations	(9		)	(6		)	(8		)
Balance at December 31	$	479		$	444		$	236