General Motors 2014 Annual Report Download - page 117

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,
2014 2013 2012
Current income tax expense (benefit)
U.S. federal ...................................................................... $ (23) $ (34) $ 6
U.S. state and local ................................................................ 154 88 78
Non-U.S. ........................................................................ 671 512 646
Total current income tax expense ..................................................... 802 566 730
Deferred income tax expense (benefit)
U.S. federal ...................................................................... (581) 1,049 (28,965)
U.S. state and local ................................................................ (60) 137 (3,415)
Non-U.S. ........................................................................ 67 375 (3,181)
Total deferred income tax expense (benefit) ............................................. (574) 1,561 (35,561)
Total income tax expense (benefit) .................................................... $ 228 $ 2,127 $(34,831)
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 $3.0 billion and $2.6 billion at December 31,
2014 and 2013. Additional basis differences related to investments in nonconsolidated China JVs exist of $4.1 billion at December 31,
2014 and 2013 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 income tax rate (dollars in millions):
Years Ended December 31,
2014 2013 2012
Income tax expense (benefit) at U.S. federal statutory income tax rate ........................ $ 753 $ 1,977 $(10,590)
State and local tax expense .......................................................... 73 145 254
Non-U.S. income taxed at other than 35% .............................................. (72) (168) 908
Foreign tax credit election change .................................................... — — (1,075)
U.S. tax on Non-U.S. income ........................................................ (8) 543 713
Change in valuation allowance ....................................................... (402) 182 (33,917)
Change in tax laws ................................................................ 602 146 67
Research incentives ............................................................... (279) (490) (68)
Goodwill impairment .............................................................. 41 124 8,705
Settlements of prior year tax matters .................................................. (275) (473) —
Realization of basis differences in affiliates ............................................. (256) — —
Foreign currency remeasurement ..................................................... 124 (21) (36)
U.S. salaried pension plan settlement .................................................. — — 541
Other adjustments ................................................................. (73) 162 (333)
Total income tax expense (benefit) ................................................... $ 228 $ 2,127 $(34,831)
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