v2.4.0.8

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

Components of the provision (benefit) for income taxes

The components of our provision (benefit) for income taxes were as follows (in millions):

		Years ended December 31,
		2013			2012			2011
Current tax expense		$	267		$	183		$	386
Deferred tax benefit		(9		)	(133		)	(62		)
Income tax expense		$	258		$	50		$	324

Reconciliation of the differences between income tax expense computed at the Swiss holding company statutory rate and the reported provision for income taxes

The following is a reconciliation of the differences between the income tax expense for our continuing operations computed at the Swiss holding company federal statutory rate of 7.83 percent and our reported provision for income taxes (in millions):

		Years ended December 31,
		2013			2012			2011
Income tax expense at the Swiss federal statutory rate		$	130		$	68		$	(426	)
Taxes on earnings subject to rates different than the Swiss federal statutory rate		185			141			221
Taxes on impairment loss subject to rates different than the Swiss federal statutory rate		5			5			409
Taxes on asset sales subject to rates different than the Swiss federal statutory rate		9			(1		)	—
Taxes on litigation matters subject to rates different than the Swiss federal statutory rate		(33		)	59			78
Changes in unrecognized tax benefits, net		(62		)	(179		)	40
Change in valuation allowance		37			1			19
Benefit from foreign tax credits		(18		)	(38		)	(28		)
Taxes on asset acquisition costs at rates lower than the Swiss federal statutory rate		—			—			8
Other, net		5			(6		)	3
Income tax expense		$	258		$	50		$	324

Significant components of deferred tax assets and liabilities

The significant components of our deferred tax assets and liabilities were as follows (in millions):

		December 31,
		2013			2012
Deferred tax assets
Net operating loss carryforwards		$	369		$	380
Tax credit carryforwards		21			41
Accrued payroll expenses not currently deductible		98			95
Deferred income		62			86
Valuation allowance		(247		)	(210		)
Loss contingencies		36			—
Professional fees		89			66
Other		28			43
Total deferred tax assets		456			501
Deferred tax liabilities
Depreciation and amortization		(650		)	(688		)
Other		(29		)	(37		)
Total deferred tax liabilities		(679		)	(725		)
Net deferred tax liabilities		$	(223	)	$	(224	)

Valuation allowance for non-current deferred tax assets

The valuation allowance for our non-current deferred tax assets was as follows (in millions):

		December 31,
		2013			2012
Valuation allowance for non-current deferred tax assets		$	247		$	210

Reconciliation of unrecognized tax benefits, excluding interest and penalties

The changes to our liabilities related to unrecognized tax benefits, excluding interest and penalties that we recognize as a component of income tax expense, were as follows (in millions):

		Years ended December 31,
		2013			2012			2011
Balance, beginning of period		$	382		$	515		$	485
Additions for current year tax positions		24			58			45
Additions for prior year tax positions		10			25			29
Reductions for prior year tax positions		(72		)	(24		)	—
Settlements		(6		)	(120		)	(42		)
Reductions related to statute of limitation expirations		(12		)	(72		)	(2		)
Balance, end of period		$	326		$	382		$	515

Schedule of unrecognized tax benefits, including related interest and penalties

The liabilities related to our unrecognized tax benefits, including related interest and penalties that we recognize as a component of income tax expense, were as follows (in millions):

		December 31,
		2013			2012
Unrecognized tax benefits, excluding interest and penalties		$	326		$	382
Interest and penalties		176			199
Unrecognized tax benefits, including interest and penalties		$	502		$	581

X

- Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 55

-Paragraph 217

-URI http://asc.fasb.org/extlink&oid=32707879&loc=d3e36027-109320



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 15A

-URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 15

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

+ Details

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Valuation Allowance

-URI http://asc.fasb.org/extlink&oid=6528051

+ Details

Name:	us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration