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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income (loss) before income taxes and noncontrolling interest | Income (loss) before income taxes and noncontrolling interest consisted of the following:
| Years ended December 31
In millions | 2013 | 2012 | 2011
Federal (1) | $ | 328.7 |  | $ | 39.2 |  | $ | (31.5 | )
International | 397.7 |  | (223.2 | ) | 74.7 |
Income (loss) before income taxes and noncontrolling interest | $ | 726.4 |  | $ | (184.0 | ) | $ | 43.2 |
(1) | As a result of the Merger, “Federal” reflects income (loss) before income taxes and noncontrolling interest for Switzerland in 2013 and 2012 and for the U.S. in 2011.
Provision for Income Taxes | The provision (benefit) for income taxes consisted of the following:
| Years ended December 31
In millions | 2013 | 2012 | 2011
Currently payable |  |  |
Federal (1) | $ | 17.4 |  | $ | 6.5 |  | $ | 51.2 |
State | — |  | — |  | 7.0 |
International (2) | 111.2 |  | 61.0 |  | 23.9 |
Total current taxes | 128.6 |  | 67.5 |  | 82.1 |
Deferred |  |  |
Federal (1) | 18.9 |  | 1.3 |  | (26.2 | )
International (2) | 36.3 |  | (148.2 | ) | (9.5 | )
Total deferred taxes | 55.2 |  | (146.9 | ) | (35.7 | )
Total provision (benefit) for income taxes | $ | 183.8 |  | $ | (79.4 | ) | $ | 46.4 |
(1) | As a result of the Merger, “Federal” represents Swiss taxes for 2013 and 2012 and U.S. taxes for 2011.
(2) | As a result of the Merger, "International" represents non-Swiss taxes for 2013 and 2012 and non-U.S. taxes for 2011
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate | Reconciliations of the federal statutory income tax rate to our effective tax rate were as follows:
| Years ended December 31
Percentages | 2013 | 2012 | 2011
Federal statutory income tax rate (1) | 7.8 | 7.8 |  | 35.0 |
Tax effect of international operations (2) | 10.5 | 23.6 |  | (25.3 | )
Change in valuation allowances | 5.5 | — |  | — |
Withholding taxes | 1.0 | — |  | — |
Interest limitations | 0.5 | — |  | — |
Non-deductible transaction costs | — | (4.7 | ) | — |
Impact of debt-financing | — | 10.8 |  | — |
Resolution of tax audits | — | 5.6 |  | — |
Goodwill | — | — |  | 104.4 |
Domestic manufacturing deduction | — | — |  | (8.4 | )
State income taxes, net of federal tax benefit | — | — |  | 4.3 |
All other, net | — | — |  | (2.7 | )
Effective tax rate | 25.3 | 43.1 |  | 107.3 |
(1) | As a result of the Merger, the statutory rate for 2013 and 2012 reflects the Swiss statutory rate of 7.8 percent. For 2011, the statutory rate reflects the U.S. statutory rate of 35 percent.
(2) | As a result of the Merger, the tax effect of international operations for 2013 and 2012 consists of non-Swiss jurisdictions. For 2011, the tax effect of international operations consists of non-U.S. jurisdictions.
Reconciliations of Gross Unrecognized Tax Benefits | Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows:
| Years ended December 31
In millions | 2013 | 2012 | 2011
Beginning balance | $ | 53.4 |  | $ | 26.5 |  | $ | 24.3 |
Gross increases for tax positions in prior periods | 12.2 |  | 2.2 |  | 2.1 |
Gross decreases for tax positions in prior periods | (0.6 | ) | (0.6 | ) | (0.2 | )
Gross increases based on tax positions related to the current year | 2.7 |  | 13.6 |  | 3.2 |
Gross decreases related to settlements with taxing authorities | (5.1 | ) | (13.2 | ) | (2.5 | )
Reductions due to statute expiration | (1.8 | ) | (0.4 | ) | (0.4 | )
Gross increases due to acquisitions | — |  | 25.3 |  | — |
Ending balance | $ | 60.8 |  | $ | 53.4 |  | $ | 26.5 |
Deferred Taxes | Deferred taxes were recorded in the Consolidated Balance Sheets as follows:
| December 31
In millions | 2013 | 2012
Other current assets | $ | 162.0 |  | $ | 82.6 |
Other non-current assets | 93.6 |  | 68.7 |
Deferred tax liabilities | 580.6 |  | 421.9 |
Net deferred tax liabilities | $ | 325.0 |  | $ | 270.6 |
Tax Effects of Major Items Recorded as Deferred Tax Assets and Liabilities | The tax effects of the major items recorded as deferred tax assets and liabilities were as follows:
| December 31
In millions | 2013 | 2012
Deferred tax assets |  |
Accrued liabilities and reserves | $ | 194.8 |  | $ | 172.8 |
Pension and other post-retirement benefits | 77.3 |  | 73.7 |
Employee compensation & benefits | 84.4 |  | 94.5 |
Tax loss and credit carryforwards | 355.0 |  | 377.8 |
Other | — |  | 9.4 |
Total deferred tax assets | 711.5 |  | 728.2 |
Valuation allowance | 237.4 |  | 174.4 |
Deferred tax assets, net of valuation allowance | 474.1 |  | 553.8 |
Deferred tax liabilities |  |
Property, plant and equipment | 60.4 |  | 80.3 |
Goodwill and other intangibles | 708.8 |  | 744.1 |
Other liabilities | 29.9 |  | — |
Total deferred tax liabilities | 799.1 |  | 824.4 |
Net deferred tax liabilities | $ | 325.0 |  | $ | 270.6 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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