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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
63
NOTE 12
TAXES
The components of income before (provision) benet for income taxes
are as follows:
(dollars in millions)
Years Ended December 31, 2013 2012 2011
Domestic $ 28,833 $ 9,316 $ 9,724
Foreign 444 581 759
Total $ 29,277 $ 9,897 $ 10,483
The components of the provision (benet) for income taxes are as follows:
(dollars in millions)
Years Ended December 31, 2013 2012 2011
Current
Federal $ (197) $ 223 $ 193
Foreign (59) (45) 25
State and Local 201 114 290
Total (55) 292 508
Deferred
Federal 5,060 (559) 270
Foreign 8 10 (38)
State and Local 717 (403) (455)
Total 5,785 (952) (223)
Total income tax provision (benet) $ 5,730 $ (660) $ 285
The following table shows the principal reasons for the difference
between the eective income tax rate and the statutory federal income
tax rate:
Years Ended December 31, 2013 2012 2011
Statutory federal income tax rate 35.0 % 35.0 % 35.0 %
State and local income tax rate, net of
federal tax benets 2.1 (1.9) (1.0)
Aordable housing credit (0.6) (1.9) (1.8)
Employee benets including ESOP
dividend (0.4) (1.1) (1.4)
Equity in earnings from unconsolidated
businesses (0.3) (1.4) (1.9)
Noncontrolling interests (14.3) (33.7) (23.0)
Other, net (1.9) (1.7) (3.2)
Eective income tax rate 19.6 % (6.7)% 2.7 %
The eective income tax rate for 2013 was 19.6% compared to (6.7)%
for 2012. The increase in the eective income tax rate and provision for
income taxes was primarily due to higher income before income taxes
as a result of severance, pension and benet credits recorded during
2013 compared to lower income before income taxes as a result of sever-
ance, pension and benet charges as well as early debt redemption costs
recorded during 2012.
The eective income tax rate for 2012 was (6.7)% compared to 2.7% for
2011. The negative eective income tax rate for 2012 and the decrease
in the provision for income taxes during 2012 compared to 2011 was
primarily due to lower income before income taxes as a result of higher
severance, pension and benet charges as well as early debt redemption
costs recorded during 2012.
The amounts of cash taxes paid are as follows:
(dollars in millions)
Years Ended December 31, 2013 2012 2011
Income taxes, net of amounts refunded $ 422 $ 351 $ 762
Employment taxes 1,282 1,308 1,328
Property and other taxes 2,082 1,727 1,883
Total $ 3,786 $ 3,386 $ 3,973