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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Components of Profit before income taxes
The components of Profit before income taxes for the years ended December 31, were as follows: 
(Millions of dollars)
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
U.S.
 
$
94

 
$
38

 
$
49

Non-U.S.
 
624

 
553

 
455

Total
 
$
718

 
$
591

 
$
504

 
 
 
 
 
 
 
Components of the Provision for income taxes
The components of the Provision for income taxes were as follows for the years ended December 31: 
(Millions of dollars)
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
Current income tax provision (benefit):
 
 
 
 
 
 
U.S.
 
$
(14
)
 
$
14

 
$
(14
)
Non-U.S.
 
183

 
179

 
164

State (U.S.)
 
—

 
(2
)
 
2

 
 
169

 
191

 
152

 
 
 
 
 
 
 
Deferred income tax provision (benefit):
 
 

 
 

 
 

U.S.
 
18

 
(13
)
 
(5
)
Non-U.S.
 
(12
)
 
(27
)
 
(32
)
State (U.S.)
 
(1
)
 
(3
)
 
(4
)
 
 
5

 
(43
)
 
(41
)
 
 
 
 
 
 
 
Total Provision for income taxes
 
$
174

 
$
148

 
$
111

 
 
 
 
 
 
 
Reconciliation of the U.S. federal statutory rate to effective rate
The actual Provision for income taxes differs from the Provision for income taxes that would result from applying the U.S. statutory rate to Profit before income taxes for the years ended December 31, for the reasons set forth in the following reconciliation: 
(Millions of dollars)
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
Taxes computed at U.S. statutory rates
 
$
251

 
35.0
 %
 
$
207

 
35.0
 %
 
$
176

 
35.0
 %
(Decreases) increases in taxes resulting from:
 
 
 
 
 
 

 
 

 
 

 
 

State Income Tax, net of Federal Tax
 
(1
)
 
(0.1
)%
 
(3
)
 
(0.5
)%
 
(1
)
 
(0.2
)%
Prior Year Non-U.S. tax and interest adjustment – Other
 
—

 
—
 %
 
—

 
—
 %
 
(15
)
 
(3.0
)%
Subsidiaries' results subject to tax rates other than U.S. statutory rates
 
(69
)
 
(9.6
)%
 
(50
)
 
(8.6
)%
 
(46
)
 
(9.1
)%
Other, net
 
(7
)
 
(1.0
)%
 
(6
)
 
(1.0
)%
 
(3
)
 
(0.6
)%
Provision for income taxes
 
$
174

 
24.3
 %
 
$
148

 
24.9
 %
 
$
111

 
22.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred income tax assets and liabilities
The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: 
(Millions of dollars)
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
Assets:
 
 
 
 
 
 
Deferred and refundable income taxes
 
$
97

 
$
104

 
$
84

Liabilities:
 
 

 
 

 
 

Deferred income taxes and other liabilities
 
(505
)
 
(539
)
 
(584
)
Deferred income taxes, net
 
$
(408
)
 
$
(435
)
 
$
(500
)
 
 
 
 
 
 
 
 
Differences between accounting rules and income tax laws cause differences between the bases of certain assets and liabilities for financial reporting and income tax purposes.  The income tax effects of these differences, to the extent they are temporary, are recorded as deferred income tax assets and liabilities netted by tax jurisdiction and taxpayer.

Our consolidated deferred income taxes consisted of the following components as of December 31: 
(Millions of dollars)
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
Deferred tax assets:
 
 
 
 
 
 
Allowance for credit losses
 
$
139

 
$
156

 
$
114

Tax credit carryforwards
 
—

 
—

 
13

Net operating loss carryforwards
 
56

 
59

 
69

 
 
195

 
215

 
196

 
 
 
 
 
 
 
Deferred income tax liabilities (primarily lease basis differences)
 
(461
)
 
(468
)
 
(494
)
 
 
 
 
 
 
 
Valuation allowance for deferred income tax assets
 
(9
)
 
(9
)
 
(9
)
 
 
 
 
 
 
 
Deferred income tax on translation adjustment
 
(133
)
 
(173
)
 
(193
)
 
 
 
 
 
 
 
Deferred income taxes, net
 
$
(408
)
 
$
(435
)
 
$
(500
)
 
 
 
 
 
 
 
Summary of net operating loss carryforwards
As of December 31, 2013, amounts and expiration dates of net operating loss (NOL) carryforwards in various U.S. state taxing jurisdictions were: 
(Millions of dollars)
 
 
 
 
 
 
 
 
2014
 
2015
 
2016
 
2017
 
2018-2029
 
Total
$
—

 
$
—

 
$
—

 
$
6

 
$
212

 
$
218

 
The gross deferred income tax asset associated with these NOL carryforwards is $17 million as of December 31, 2013, partially offset by a valuation allowance of $6 million.  The valuation allowance indicates the loss carryforwards are likely to expire prior to utilization.
 
In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns.  In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis.
 
As of December 31, 2013, amounts and expiration dates of NOL carryforwards in various non-U.S. taxing jurisdictions were: 
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
2014
 
2015
 
2016
 
2017
 
2018-2029
 
Unlimited
 
Total
$
2

 
$
3

 
$
1

 
$
1

 
$
32

 
$
137

 
$
176

 
Valuation allowances totaling $3 million have been recorded at certain non-U.S. subsidiaries that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets.
Schedule of unrecognized tax benefits
A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: 
(Millions of dollars)
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
Reconciliation of unrecognized income tax benefits(1):
 
 
 
 
 
 
Balance at beginning of year
 
$
2

 
$
—

 
$
7

Additions for income tax positions related to prior year
 
—

 
2

 
—

Reductions for income tax positions related to prior year
 
—

 
—

 
(7
)
Reductions for income tax positions related to settlements(2)
 
(2
)
 
—

 
—

Balance at end of year
 
$
—

 
$
2

 
$
—

 
 
 
 
 
 
 
Amount that, if recognized, would impact the effective tax rate
 
$
—

 
$
2

 
$
—

 
 
 
 
 
 
 
(1) Foreign currency translation amounts are included within each line as applicable.
(2) Includes cash payment or other reduction of assets to settle liability.