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Throughout 2013, the Company continued to have access to liquidity through the commercial paper market. Short-term
borrowings and the current portion of long-term debt amounted to approximately $4.9 billion at the end of 2013, of which
$2.5 billion was borrowed under the Commercial Paper Program. The remainder principally represents local borrowing by
international subsidiaries.
The Company has a shelf registration with the U.S. Securities and Exchange Commission that enables the Company to
issue debt securities and warrants to purchase debt securities on a timely basis. The Company issued bonds in December
2013 for a total of $3.5 billion for general corporate purposes.
Aggregate maturities of long-term obligations commencing in 2014 are:
(Dollars in Millions)
2014 2015 2016 2017 2018
After
2018
$1,769 76 2,096 1,007 1,526 8,623
8. Income Taxes
The provision for taxes on income consists of:
(Dollars in Millions) 2013 2012 2011
Currently payable:
U.S. taxes $594 2,023 2,392
International taxes 1,653 1,277 1,133
Total currently payable 2,247 3,300 3,525
Deferred:
U.S. taxes (251) (120) (690)
International taxes (356) 81 (146)
Total deferred (607) (39) (836)
Provision for taxes on income $1,640 3,261 2,689
A comparison of income tax expense at the U.S. statutory rate of 35% in 2013, 2012 and 2011, to the Company’s
effective tax rate is as follows:
(Dollars in Millions) 2013 2012 2011
U.S. $4,261 4,664 3,634
International 11,210 9,111 8,727
Earnings before taxes on income: $15,471 13,775 12,361
Tax rates:
U.S. statutory rate 35.0% 35.0 35.0
International operations excluding Ireland (10.6) (9.8) (14.0)
Ireland and Puerto Rico operations (9.0) (3.9) (1.8)
Research and orphan drug tax credits (0.8) – (0.8)
U.S. state and local 0.4 1.3 2.1
U.S. manufacturing deduction (0.8) (0.9) (0.8)
U.S. tax on international income 1.7 1.1 (0.4)
U.S. tax benefit on asset write-offs (5.1) – –
All other (0.2) 0.9 2.5
Effective tax rate 10.6% 23.7 21.8
36 •Johnson & Johnson 2013 Annual Report