Johnson and Johnson 2012 Annual Report Download - page 44

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Aggregate maturities of long-term obligations commencing in 2012 are:
(Dollars in Millions)
2013 2014 2015 2016 2017
After
2017
$1,512 1,789 – 898 1,000 7,802
8. Income Taxes
The provision for taxes on income consists of:
(Dollars in Millions) 2012 2011 2010
Currently payable:
U.S. taxes $2,023 2,392 2,063
International taxes 1,277 1,133 1,194
Total currently payable 3,300 3,525 3,257
Deferred:
U.S. taxes (120) (690) (4)
International taxes 81 (146) 360
Total deferred (39) (836) 356
Provision for taxes on income $3,261 2,689 3,613
A comparison of income tax expense at the U.S. statutory rate of 35% in 2012, 2011 and 2010, to the Company’s
effective tax rate is as follows:
(Dollars in Millions) 2012 2011 2010
U.S. $4,664 3,634 6,392
International 9,111 8,727 10,555
Earnings before taxes on income: $13,775 12,361 16,947
Tax rates:
U.S. statutory rate 35.0% 35.0 35.0
International operations excluding Ireland (9.8) (14.0) (7.5)
Ireland and Puerto Rico operations (3.9) (1.8) (5.1)
Research and orphan drug tax credits — (0.8) (0.6)
U.S. state and local 1.3 2.1 1.0
U.S. manufacturing deduction (0.9) (0.8) (0.5)
U.S. tax on international income 1.1 (0.4) (0.6)
All other (1) 0.9 2.5 (0.4)
Effective tax rate 23.7% 21.8 21.3
(1) Includes U.S. expenses not fully tax deductible primarily related to litigation expense.
The increase in the 2012 effective tax rate as compared to 2011 was due to lower tax benefits on the impairment of in-
process research and development intangible assets in low tax jurisdictions, increases in taxable income in higher tax
jurisdictions relative to lower tax jurisdictions and the exclusion of the benefit of the U.S. Research & Development (R&D)
tax credit and the CFC look-through provisions from the 2012 fiscal year financial results. The R&D tax credit and the CFC
look-through provisions were enacted into law in 2013 and were retroactive to January 1, 2012. The entire benefit of the
R&D tax credit and the CFC look-through provisions will be reflected in the 2013 fiscal year financial results. The increase
in the 2011 tax rate as compared to 2010 was primarily due to certain U.S. expenses which are not fully tax deductible
and higher U.S. state taxes partially offset by increases in taxable income in lower tax jurisdictions relative to higher tax
jurisdictions.
36 •Johnson & Johnson 2012 Annual Report