GE 2013 Annual Report Download - page 113

GE 2013 ANNUAL REPORT 111
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In 2014, we estimate that we will amortize $395 million of
prior service cost and $170 million of net actuarial gain from
shareowners’ equity into retiree benefi t plans cost. Comparable
amortized amounts in 2013 were $393 million of prior service
cost and $45 million of net actuarial gain.
ESTIMATED FUTURE BENEFIT PAYMENTS
(In millions) 2014 2015 2016 2017 2018
2019–
2023
$725 $725 $725 $725 $725 $3,500
Postretirement Benefit Plans
2013 COST OF POSTRETIREMENT BENEFIT PLANS AND CHANGES IN
OTHER COMPREHENSIVE INCOME
Total
postretirement
(In millions) benefit plans
Principal
pension
plans
Other
pension
plans
Retiree
benefit
plans
Cost of postretirement
benefit plans $ 5,977 $ 4,405 $ 645 $ 927
Changes in other
comprehensive income
Prior service cost—
current year 11 — 11 —
Net actuarial gain—
current year (a) (12,263) (9,218) (1,151) (1,894)
Prior service cost
amortization (646) (246) (7) (393)
Net actuarial gain (loss)
amortization (3,962) (3,664) (343) 45
Total changes in other
comprehensive income (16,860) (13,128) (1,490) (2,242)
Cost of postretirement
benefit plans and
changes in other
comprehensive income $ (10,883) $ (8,723) $ (845) $ (1,315)
(a) Principally associated with discount rate changes and plan asset gains in excess
of expected return on plan assets.
Note 13.
All Other Liabilities
This caption includes liabilities for various items including non-
current compensation and benefi ts, deferred income, interest
on tax liabilities, unrecognized tax benefi ts, environmental
remediation, asset retirement obligations, derivative instruments,
product warranties and a variety of sundry items.
Accruals for non-current compensation and benefi ts
amounted to $27,853 million and $40,318 million at December
31, 2013 and 2012, respectively. These amounts include
postretirement benefi ts, pension accruals, and other com-
pensation and benefi t accruals such as deferred incentive
compensation. See Note 12.
We are involved in numerous remediation actions to clean up
hazardous wastes as required by federal and state laws. Liabilities
for remediation costs exclude possible insurance recoveries
and, when dates and amounts of such costs are not known, are
not discounted. When there appears to be a range of possible
costs with equal likelihood, liabilities are based on the low end
of such range. It is reasonably possible that our environmental
remediation exposure will exceed amounts accrued. However,
due to uncertainties about the status of laws, regulations, tech-
nology and information related to individual sites, such amounts
are not reasonably estimable. Total reserves related to environ-
mental remediation and asbestos claims, were $2,612 million at
December 31, 2013.
Note 14.
Income Taxes
PROVISION FOR INCOME TAXES
(In millions) 2013 2012 2011
GE
Current tax expense $ 4,239 $ 2,307 $ 5,166
Deferred tax expense (benefit)
from temporary differences (2,571) (294) (327)
1,668 2,013 4,839
GECC
Current tax expense (benefit) (268) 1,379 783
Deferred tax expense (benefit)
from temporary differences (724) (858) 123
(992) 521 906
CONSOLIDATED
Current tax expense 3,971 3,686 5,949
Deferred tax expense (benefit)
from temporary differences (3,295) (1,152) (204)
Total $ 676 $ 2,534 $ 5,745
GE and GECC fi le a consolidated U.S. federal income tax return.
This enables GE to use GECC tax deductions and credits to reduce
the tax that otherwise would have been payable by GE. The GECC
effective tax rate for each period refl ects the benefi t of these tax
reductions in the consolidated return. GE makes cash payments
to GECC for these tax reductions at the time GE’s tax payments
are due.
Consolidated U.S. earnings from continuing operations
before income taxes were $6,099 million, $8,309 million and
$10,206 million in 2013, 2012 and 2011, respectively. The
corresponding amounts for non-U.S.-based operations were
$10,052 million, $9,072 million and $9,953 million in 2013, 2012
and 2011, respectively.
Consolidated current tax expense includes amounts appli-
cable to U.S. federal income taxes of $85 million, $685 million
and $1,079 million in 2013, 2012 and 2011, respectively, including
the benefi t from GECC deductions and credits applied against
GE’s current U.S. tax expense. Consolidated current tax expense
amounts applicable to non-U.S. jurisdictions were $3,659 million,
$2,871 million and $4,624 million in 2013, 2012 and 2011, respec-
tively. Consolidated deferred taxes related to U.S. federal income
taxes were an expense (benefi t) of $(2,315) million, $(414) mil-
lion and $1,529 million in 2013, 2012 and 2011, respectively, and
amounts applicable to non-U.S. jurisdictions of an expense (ben-
efi t) of $(1,038) million, $(773) million and $(2,077) million in 2013,
2012 and 2011, respectively.
Deferred income tax balances refl ect the effects of tempo-
rary differences between the carrying amounts of assets and
liabilities and their tax bases, as well as from net operating loss
and tax credit carryforwards, and are stated at enacted tax rates