GE 2013 Annual Report Download - page 115

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GE 2013 ANNUAL REPORT 113
    
A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate is provided below.
RECONCILIATION OF U.S. FEDERAL STATUTORY INCOME TAX RATE TO ACTUAL INCOME TAX RATE
Consolidated GE GECC
2013 2012 2011 2013 2012 2011 2013 2012 2011
U.S. federal statutory income tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Increase (reduction) in rate resulting
from inclusion of after-tax earnings
of GECC in before-tax earnings of GE — — — (16.9) (15.3) (11.9) — — —
Tax on global activities including exports (a) (24.7) (12.5) (10.4) (4.1) (4.3) (5.2) (45.0) (18.4) (14.7)
NBCU gain (0.7) — 9.3 (0.7) — 9.8 — — —
Business Property disposition — (1.9) — — — — — (4.2) —
U.S. business credits (b) (3.6) (2.6) (3.2) (1.5) (0.7) (1.5) (4.6) (4.3) (4.7)
All other—net (1.8) (3.4) (2.2) (2.0) (2.7) (0.9) 1.0 (1.5) (3.5)
(30.8) (20.4) (6.5) (25.2) (23.0) (9.7) (48.6) (28.4) (22.9)
Actual income tax rate 4.2% 14.6% 28.5% 9.8% 12.0% 25.3% (13.6)% 6.6% 12.1%
(a) Included (6.0)% and (13.3)% in consolidated and GECC, respectively, related to the sale of 68.5% of our Swiss consumer finance bank, Cembra Money Bank AG (Cembra),
through an initial public offering in 2013.
(b) U.S. general business credits, primarily the credit for manufacture of energy-efficient appliances, the credit for energy produced from renewable sources, the advanced
energy project credit, the low-income housing credit and the credit for research performed in the U.S.
DEFERRED INCOME TAXES
Aggregate deferred income tax amounts are summarized below.
December 31 (In millions) 2013 2012
ASSETS
GE $ 15,284 $ 19,745
GECC 13,224 11,876
28,508 31,621
LIABILITIES
GE (10,223) (13,799)
GECC (18,010) (17,876)
(28,233) (31,675)
Net deferred income tax asset (liability) $ 275 $ (54)
Principal components of our net asset (liability) representing
deferred income tax balances are as follows:
December 31 (In millions) 2013 2012
GE
Provision for expenses (a) $ 5,934 $ 6,503
Principal pension plans 3,436 6,567
Retiree insurance plans 3,154 3,800
Non-U.S. loss carryforwards (b) 874 942
Contract costs and estimated earnings (3,550) (3,087)
Intangible assets (2,268) (2,269)
Depreciation (1,079) (698)
Investment in global subsidiaries (1,077) (921)
Investment in NBCU LLC — (4,937)
Other—net (363) 46
5,061 5,946
GECC
Operating leases (6,284) (6,141)
Financing leases (4,075) (4,506)
Intangible assets (1,943) (1,666)
Cash flow hedges (163) (115)
Net unrealized gains (losses) on securities (145) (314)
Non-U.S. loss carryforwards (b) 3,791 3,049
Allowance for losses 2,640 1,975
Investment in global subsidiaries 1,883 1,689
Other—net (490) 29
(4,786) (6,000)
Net deferred income tax asset (liability) $ 275 $ (54)
(a) Represented the tax effects of temporary differences related to expense
accruals for a wide variety of items, such as employee compensation and
benefits, other pension plan liabilities, interest on tax liabilities, product
warranties and other sundry items that are not currently deductible.
(b) Net of valuation allowances of $2,089 million and $1,712 million for GE and
$862 million and $628 million for GECC, for 2013 and 2012, respectively. Of the
net deferred tax asset as of December 31, 2013, of $4,665 million, $30 million
relates to net operating loss carryforwards that expire in various years ending
from December 31, 2014 through December 31, 2016; $478 million relates to net
operating losses that expire in various years ending from December 31, 2017
through December 31, 2030, and $4,157 million relates to net operating loss
carryforwards that may be carried forward indefinitely.