General Motors 2013 Annual Report Download - page 111

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,
2013 2012 2011
Current income tax expense (benefit)
U.S. federal ......................................................................... $ (34) $ 6 $(134)
U.S. state and local ................................................................... 88 78 58
Non-U.S. ........................................................................... 512 646 275
Total current income tax expense ....................................................... 566 730 199
Deferred income tax expense (benefit)
U.S. federal ......................................................................... 1,049 (28,965) 8
U.S. state and local ................................................................... 137 (3,415) (28)
Non-U.S. ........................................................................... 375 (3,181) (289)
Total deferred income tax expense (benefit) ............................................... 1,561 (35,561) (309)
Total income tax expense (benefit) ...................................................... $ 2,127 $(34,831) $(110)
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 primarily as a result of earnings in foreign
subsidiaries and corporate joint ventures which are deemed indefinitely reinvested of $2.6 billion and $1.4 billion at December 31,
2013 and 2012. Additional basis differences in investments in nonconsolidated China JVs exist of $4.1 billion at December 31, 2013
and 2012 primarily related to fresh-start reporting. 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,
2013 2012 2011
Income tax expense (benefit) at U.S. federal statutory income tax rate ........................ $ 1,977 $(10,590) $ 2,094
State and local tax expense .......................................................... 145 254 215
Non-U.S. income taxed at other than 35% .............................................. (168) 908 (172)
Foreign tax credit election change .................................................... — (1,075) —
U.S. tax on Non-U.S. income ........................................................ 543 713 (122)
Change in valuation allowance ....................................................... 182 (33,917) (2,386)
Change in tax laws ................................................................ 146 67 (33)
Research incentives ............................................................... (490) (68) (45)
Gain on sale of New Delphi equity interests ............................................ — — 599
Goodwill impairment .............................................................. 124 8,705 377
Settlements of prior year tax matters .................................................. (473) — (56)
VEBA contribution ................................................................ — — (476)
Foreign currency remeasurement ..................................................... (21) (36) 59
Pension contribution ............................................................... — — (127)
U.S. salaried pension plan settlement .................................................. — 541 —
Other adjustments ................................................................. 162 (333) (37)
Total income tax expense (benefit) ................................................... $ 2,127 $(34,831) $ (110)
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