Mondelez 2013 Annual Report Download - page 112

Table of Contents
Our 2012 revised effective tax rate of 9.5% was favorably impacted by the mix of pre-tax income in various foreign jurisdictions and
net tax benefits from discrete one-time tax events, partially offset by non-deductible expenses. The $140 million of discrete one-
time events primarily related to the net reduction of U.K. deferred tax liabilities resulting from tax legislation enacted during 2012
that reduced U.K. corporate income tax rates and net favorable tax audit settlements.
Our 2011 revised effective tax rate of 6.2% was favorably impacted by the mix of pre-tax income in various foreign jurisdictions and
net tax benefits of $253 million from discrete one-time events, primarily from the net reduction of U.K. deferred tax liabilities
resulting from tax legislation enacted in 2011 that reduced U.K. corporate income tax rates, the net favorable impact from tax audit
developments during the year, the reversal of valuation allowances on certain foreign deferred tax assets that are now expected to
be realized and adjustments to taxes payable as a result of tax return filings.
The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following at
December 31, 2013 and 2012:
Our significant valuation allowances reside within our operating subsidiaries in Mexico, Ireland and various other jurisdictions.
At December 31, 2013, applicable U.S. federal income taxes and foreign withholding taxes had not been provided on approximately
$12.4 billion of accumulated earnings of foreign subsidiaries that are expected to be indefinitely reinvested. It is impractical for us to
determine the amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings. Future tax law changes or
changes in the needs of our foreign subsidiaries could require us to recognize deferred tax liabilities on a portion, or all, of our
accumulated earnings that were previously expected to be indefinitely reinvested.
The changes in our unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 were:
104
2013
2012
(in millions)
Deferred income tax assets:
Accrued postretirement and postemployment benefits
$
176
$
157
Accrued pension costs
417
693
Loss carryforwards
553
639
Other
1,189
1,755
Total deferred income tax assets
2,335
3,244
Valuation allowance
(335
)
(426
)
Net deferred income tax assets
$
2,000
$
2,818
Deferred income tax liabilities:
Trade names
$
(5,991
)
$
(6,394
)
Property, plant and equipment
(995
)
(972
)
Other
(590
)
(896
)
Total deferred income tax liabilities
(7,576
)
(8,262
)
Net deferred income tax liabilities
$
(5,576
)
$
(5,444
)
2013
2012
2011
(in millions)
January 1
$
1,164
$
1,522
$
1,256
Increases from positions taken during prior periods
94
119
220
Decreases from positions taken during prior periods
(132
)
(198
)
(147
)
Increases from positions taken during the current period
131
264
266
Decreases relating to settlements with taxing authorities
(7
)
(257
)
(17
)
Reductions resulting from the lapse of the applicable
statute of limitations
(55
)
(23
)
(16
)
Impact of Spin-Off
–
(
261
)
–
Currency / other
(6
)
(2
)
(40
)
December 31
$
1,189
$
1,164
$
1,522