GE 2014 Annual Report Download - page 87

GE 2014 FORM 10-K 67
MD&A OTHER CONSOLIDATED INFORMATION
GECC EFFECTIVE TAX RATE
(Dollars in billions)
GECC ETR GECC PROVISION (BENEFIT) FOR INCOME TAXES
2012 2013 2014 2012 2013 2014
2014 – 2013 COMMENTARY
x The increase in GECC provision for income taxes of $1.1 billion was primarily attributable to the absence of the significant
tax benefit related to the 2013 sale of a portion of Cembra ($1.0 billion).
x The income tax provision also increased due to decreased benefits from lower-taxed global operations including the
absence of the 2013 benefits from enactment of the extension of the U.S. tax provision deferring tax on active financial
services income ($0.6 billion).
x The increase also reflects higher income taxed at rates above the average rate ($0.1 billion).
x The items increasing tax expense were partially offset by the benefits from the tax efficient disposition of GEMB-Nordic
($0.3 billion), which is reported in the caption “Tax on global activities including exports” in the effective tax rate
reconciliation in Note 14 to the consolidated financial statements in this Form 10-K Report.
2013 – 2012 COMMENTARY
x The decrease in GECC provision for income taxes of $1.5 billion was primarily attributable to increased benefits from
lower-taxed global operations ($1.7 billion), including the significant tax benefit related to the sale of a portion of Cembra
($1.0 billion), and the 2013 tax benefits related to the extension of the U.S. tax provision deferring tax on active financial
services income ($0.3 billion).
x The income tax provision also lower due to benefit from the resolution of the IRS audit of the 2008-2009 tax years and
items for other years ($0.1 billion), which is reported partially in the caption “Tax on global activities including exports” and
partially in the caption “All other-net” in the effective tax rate reconciliation in Note 14 to the consolidated financial
statements in this Form 10-K Report.
x The items lowering the expense were partially offset by the absence of the 2012 benefit attributable to the high tax basis
in the entity sold in the Business Property disposition ($0.3 billion).