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Income Taxes
3 Months Ended
Mar. 31, 2013
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]  
Income Taxes
INCOME TAXES
The income tax benefit for the three months ended March 31, 2013 was $67 million compared to income tax expense of $36 million for the three months ended March 31, 2012. In January 2013, the “American Taxpayer Relief Act of 2012” was signed into law, of which the most significant impact to Whirlpool was the reinstatement of the United States energy tax credit for 2012 and 2013. The income tax benefit for the three months ended March 31, 2013 was primarily driven by United States energy tax credits of $75 million related to 2012 production and $9 million related to estimated 2013 production.
The following table summarizes the difference between income tax expense at the United States statutory rate of 35% and the income tax (benefit) expense at effective worldwide tax rates for the periods presented:


Three Months Ended March 31,
Millions of dollars

2013

2012
Earnings before income taxes

$
190


$
133

Income tax expense computed at United States statutory tax rate

$
67


$
47

U.S. government tax incentive - Energy Tax Credits

(84
)


Foreign government tax incentive - BEFIEX

(6
)

(4
)
Other

(44
)

(7
)
Income tax (benefit) expense computed at effective worldwide tax rates

$
(67
)

$
36


Over the next twelve months it is reasonably possible that we will settle unrecognized tax benefits totaling approximately $88 million associated with certain tax examinations and other events.
At the end of each interim period, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjust the quarterly rate as necessary.