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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Before Income Taxes | For the years ended December 31, income before income taxes consisted of the following:
In millions |  | 2013 |  |  | 2012 |  |  | 2011 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 362 |  |  | $ | 388 |  |  | $ | 309 |
Foreign |  |  | 146 |  |  |  | 190 |  |  |  | 172 |
Total income before income taxes |  | $ | 508 |  |  | $ | 578 |  |  | $ | 481 |
Income Tax Expense | For the years ended December 31, income tax expense consisted of the following:
In millions |  | 2013 |  |  | 2012 |  |  | 2011 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 78 |  |  | $ | 50 |  |  | $ | 26 |
State and local |  |  | 10 |  |  |  | 9 |  |  |  | 3 |
Foreign |  |  | 26 |  |  |  | 23 |  |  |  | 29 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 18 |  |  |  | 72 |  |  |  | 64 |
State and local |  |  | 2 |  |  |  | 7 |  |  |  | 8 |
Foreign |  |  | (3 | ) |  |  | (2 | ) |  |  | (2 | )
Total income tax expense |  | $ | 131 |  |  | $ | 159 |  |  | $ | 128 |
The Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate | The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31:
In millions |  | 2013 |  |  | 2012 |  |  | 2011 |
Income tax expense at the U.S. federal tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Foreign income tax differential |  |  | (7.3 | %) |  |  | (8.1 | %) |  |  | (7.4 | %)
State and local income taxes |  |  | 0.4 | % |  |  | 0.7 | % |  |  | 1.3 | %
U.S. permanent book/tax differences |  |  | (1.6 | %) |  |  | (0.5 | %) |  |  | (1.8 | %)
Other, net |  |  | (0.7 | %) |  |  | 0.4 | % |  |  | (0.5 | %)
Total income tax expense |  |  | 25.8 | % |  |  | 27.5 | % |  |  | 26.6 | %
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:
In millions |  | 2013 |  |  | 2012 |
Deferred income tax assets |  |  |  |  |  |  |  |
Employee pensions and other liabilities |  | $ | 57 |  |  | $ | 54 |
Other balance sheet reserves and allowances |  |  | 22 |  |  |  | 27 |
Deferred revenue |  |  | 2 |  |  |  | 4 |
Tax loss and credit carryforwards |  |  | 41 |  |  |  | 41 |
Capitalized research and development |  |  | 5 |  |  |  | 16 |
Other |  |  | 1 |  |  |  | 0 |
Total deferred income tax assets |  |  | 128 |  |  |  | 142 |
Valuation allowance |  |  | (13 | ) |  |  | (9 | )
Net deferred income tax assets |  |  | 115 |  |  |  | 133 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Intangibles and capitalized software |  |  | 117 |  |  |  | 123 |
Property and equipment |  |  | 29 |  |  |  | 26 |
Other |  |  | 0 |  |  |  | 5 |
Total deferred income tax liabilities |  |  | 146 |  |  |  | 154 |
Total net deferred income tax liabilities |  | ($ | 31 | ) |  | ($ | 21 | )
Liability Related to Uncertain Tax Positions | Below is a rollforward of the Company’s liability related to uncertain tax positions at December 31:
In millions |  | 2013 |  |  | 2012 |
Balance at January 1 |  | $ | 31 |  |  | $ | 28 |
Gross increases for prior period tax positions |  |  | 1 |  |  |  | 0 |
Gross decreases for prior period tax positions |  |  | (3 | ) |  |  | (1 | )
Gross increases for current period tax positions |  |  | 5 |  |  |  | 4 |
Balance at December 31 |  | $ | 34 |  |  | $ | 31 |

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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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- 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
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- 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
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- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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- 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
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