General Motors 2012 Annual Report Download - page 152

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Income Tax Expense (Benefit)
The following table summarizes Income tax expense (benefit) (dollars in millions):
Years Ended December 31,
2012 2011 2010
Current income tax expense (benefit)
U.S. federal ...................................................................... $ 6 $(134) $ (10)
U.S. state and local ................................................................ 78 58 (1)
Non-U.S. ........................................................................ 646 275 441
Total current income tax expense ..................................................... 730 199 430
Deferred income tax expense (benefit)
U.S. federal ...................................................................... (28,965) 8 (25)
U.S. state and local ................................................................ (3,415) (28) 8
Non-U.S. ........................................................................ (3,181) (289) 259
Total deferred income tax expense (benefit) ............................................. (35,561) (309) 242
Total income tax expense (benefit) .................................................... $(34,831) $(110) $672
Provisions are made for estimated U.S. and non-U.S. income taxes, less available tax credits and deductions, which may be incurred
on the remittance of our basis differences in investments in foreign subsidiaries and corporate joint ventures not deemed to be
indefinitely reinvested. Taxes have not been provided on basis differences in investments in foreign subsidiaries and corporate joint
ventures which are deemed indefinitely reinvested of $5.5 billion and $6.2 billion at December 31, 2012 and 2011. Quantification of
the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable.
The following table summarizes a reconciliation of Income tax expense (benefit) compared with the amounts at the U.S. federal
statutory rate (dollars in millions):
Years Ended December 31,
2012 2011 2010
Income tax expense (benefit) at U.S. federal statutory income tax rate ........................ $(10,590) $ 2,094 $ 2,008
State and local tax expense .......................................................... 254 215 334
Foreign income taxed at other than 35% ................................................ 908 243 1,579
Foreign tax credit election change ..................................................... (1,075) — —
Taxes on unremitted earnings of subsidiaries ............................................ 100 (537) (10)
Change in valuation allowance ....................................................... (33,917) (2,386) (2,903)
Change in tax laws ................................................................. 67 (33) —
Research incentives ................................................................ (68) (45) (235)
Gain on sale of New Delphi equity interests ............................................. — 599 —
Goodwill impairment ............................................................... 8,705 377 —
Settlements of prior year tax matters ................................................... — (56) (170)
VEBA contribution ................................................................ — (476) —
Foreign currency remeasurement ...................................................... (36) 59 143
Pension contribution ............................................................... — (127) —
U.S. salaried pension plan settlement .................................................. 541 — —
Other adjustments ................................................................. 280 (37) (74)
Total income tax expense (benefit) .................................................... $(34,831) $ (110) $ 672
General Motors Company 2012 ANNUAL REPORT 149