Johnson and Johnson 2014 Annual Report Download - page 46

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Throughout 2014, 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 $3.6 billion at the end of 2014, of which
$3.1 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 November
2014 for a total of $2.0 billion for general corporate purposes. This included the reopening of the 2023 and 2033 bonds
issued in December 2013.
Aggregate maturities of long-term obligations commencing in 2015 are:
(Dollars in Millions)
2015 2016 2017 2018 2019
After
2019
$7 2,152 1,722 1,496 1,713 8,039
8. Income Taxes
The provision for taxes on income consists of:
(Dollars in Millions) 2014 2013 2012
Currently payable:
U.S. taxes $2,625 594 2,023
International taxes 1,174 1,653 1,277
Total currently payable 3,799 2,247 3,300
Deferred:
U.S. taxes (258) (251) (120)
International taxes 699 (356) 81
Total deferred 441 (607) (39)
Provision for taxes on income $4,240 1,640 3,261
A comparison of income tax expense at the U.S. statutory rate of 35% in 2014, 2013 and 2012, to the Company’s
effective tax rate is as follows:
(Dollars in Millions) 2014 2013 2012
U.S. $8,001 4,261 4,664
International 12,562 11,210 9,111
Earnings before taxes on income: $20,563 15,471 13,775
Tax rates:
U.S. statutory rate 35.0% 35.0 35.0
International operations excluding Ireland (7.0) (10.6) (9.8)
Ireland and Puerto Rico operations (6.9) (9.0) (3.9)
Research and orphan drug tax credits (0.3) (0.8) –
U.S. state and local 1.0 0.4 1.3
U.S. manufacturing deduction (0.6) (0.8) (0.9)
U.S. tax on international income 1.4 1.7 1.1
U.S. tax benefit on asset/business disposals (1.9) (5.1) –
All other (0.1) (0.2) 0.9
Effective tax rate 20.6% 10.6 23.7
36 •Johnson & Johnson 2014 Annual Report