Mondelez 2012 Annual Report Download - page 96

Table of Contents
Note 14. Income Taxes
Earnings / (losses) from continuing operations before income taxes and the provision for income taxes consisted of the following for
the years ended December 31, 2012, 2011 and 2010:
The changes in our unrecognized tax benefits for the years ended December 31, 2012, 2011 and 2010 were:
Under the Tax Sharing and Indemnity Agreements between us and Kraft Foods Group, Kraft Foods Group generally assumes
liability for all U.S. state income taxes and Canadian federal and provincial income taxes and we generally assume responsibility for
all U.S. federal income taxes and substantially all foreign income taxes, excluding Canadian income taxes for all tax periods prior to
the Spin-Off. In addition, we transferred to Kraft Foods Group all of its deferred tax assets and liabilities as of the Distribution Date.
See Note 2, Divestitures and Acquisitions.
As of January 1, 2012, our unrecognized tax benefits were $1,538 million. If we had recognized all of these benefits, the net impact
on our income tax provision would have been $1,317 million. Our unrecognized tax benefits were $1,183 million at December 31,
2012, and if we had recognized all of these benefits, the net impact on our income tax provision would have been $1,105 million.
Within the next 12 months, our unrecognized tax benefits could increase by approximately $40 million due to unfavorable audit
developments or decrease by $60-80 million due to audit settlements and the expiration of statutes of limitations in various
jurisdictions. We include accrued interest and penalties related to uncertain tax positions in our tax provision. We accrued interest
and penalties of $286 million as of January 1, 2012 and $203 million as of December 31, 2012. Our 2012 provision for income
taxes included $33 million for interest and penalties and we paid interest and penalties of $61 million during 2012.
93
2012
2011
2010
(in millions)
Earnings / (losses) from continuing operations
before income taxes:
United States
$
(1,822
)
$
(1,308
)
$
(1,435
)
Outside United States
3,596
3,188
2,161
Total
$
1,774
$
1,880
$
726
Provision for income taxes:
United States federal:
Current
$
(421
)
$
(404
)
$
(853
)
Deferred
(37
)
10
410
(458
)
(394
)
(443
)
State and local:
Current
(16
)
(38
)
(137
)
Deferred
(20
)
45
129
(36
)
7
(8
)
Total United States
(494
)
(387
)
(451
)
Outside United States:
Current
893
1,008
642
Deferred
(192
)
(478
)
(137
)
Total outside United States
701
530
505
Total provision for income taxes
$
207
$
143
$
54
2012
2011
2010
(in millions)
January 1
$
1,538
$
1,281
$
829
Increases from positions taken during prior periods
110
222
49
Decreases from positions taken during prior periods
(198
)
(147
)
(146
)
Increases from positions taken during the current period
266
253
229
Increases from acquisition adjustments
–
–
357
Decreases relating to settlements with taxing authorities
(250
)
(17
)
(19
)
Reductions resulting from the lapse of the applicable statute of
limitations
(20
)
(14
)
(10
)
Impact of Spin
-
Off
(261
)
–
–
Currency / other
(2
)
(40
)
(8
)
December 31
$
1,183
$
1,538
$
1,281