Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income before taxes domestic and foreign operations

Income before taxes on income resulted from domestic and foreign operations as follows:

(in millions)	Year Ended December 31,
	2013		2012		2011
Domestic operations	$	868	$	841	$	700
Foreign operations	478		289		300
Total continuing income before taxes	$	1,346	$	1,130	$	1,000

Provision/(benefit) for taxes on income

The provision/(benefit) for taxes on income consists of the following:

(in millions)	Year Ended December 31,
	2013			2012			2011
Federal:
Current	$	209		$	194		$	238
Deferred	51			74			(6		)
Total federal	260			268			232
Foreign:
Current	152			91			93
Deferred	(19		)	(9		)	13
Total foreign	133			82			106
State and local:
Current	40			40			36
Deferred	10			14			—
Total state and local	50			54			36
Total provision for taxes for continuing operations	443			404			374
Provision for discontinued operations	281			11			164
Total provision for taxes	$	724		$	415		$	538

Reconciliation of federal statutory income tax rate

A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for financial reporting purposes is as follows:

	Year Ended December 31,
	2013		2012		2011
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes	2.8		3.6		2.4
Foreign operations	(3.7	)	(2.6	)	(3.0	)
S&P Dow Jones Indices LLC joint venture	(1.9	)	(1.1	)	—
Other, net	0.7		0.9		3.0
Effective income tax rate for continuing operations	32.9	%	35.8	%	37.4	%

Differences between the accounting for income and expenses for financial reporting and income tax

The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes are as follows:

(in millions)	December 31,
	2013			2012
Deferred tax assets:
Postretirement benefits	$	32		$	201
Employee compensation	72			123
Accrued expenses	142			105
Unearned revenue	55			60
Allowance for doubtful accounts	15			17
Loss carryforwards	28			25
Other	10			—
Total deferred tax assets	354			531
Deferred tax liabilities:
Goodwill and intangible assets 1	(379		)	(379		)
Fixed assets	(55		)	(54		)
Other	—			(1		)
Total deferred tax liabilities	(434		)	(434		)
Net deferred income tax (liability) asset before valuation allowance	(80		)	97
Valuation allowance	(5		)	(7		)
Net deferred income tax (liability) asset	$	(85	)	$	90
Reported as:
Current deferred tax assets	$	108		$	117
Current deferred tax liabilities	(10		)	(7		)
Non-current deferred tax assets	22			36
Non-current deferred tax liabilities	(205		)	(56		)
Net deferred income tax (liability) asset	$	(85	)	$	90

¹  See Note 2 – Acquisitions andDivestitures for further discussion regarding the impact related to the S&P Dow Jones Indices LLC.

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)	Years ended December 31,
	2013			2012			2011
Balance at beginning of year	$	74		$	58		$	53
Additions based on tax positions related to the current year	27			14			12
Additions for tax positions of prior years	10			3			3
Reduction for tax positions of prior years	(9		)	(1		)	(10		)
Reduction for settlements	(20		)	—			—
Balance at end of year	$	82		$	74		$	58