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Aggregate maturities of long-term obligations commencing in 2016 are:
(Dollars in Millions)
2016 2017 2018 2019 2020
After
2020
$2,104 1,790 1,501 1,587 683 7,296
8. Income Taxes
The provision for taxes on income consists of:
(Dollars in Millions) 2015 2014 2013
Currently payable:
U.S. taxes $2,748 2,625 594
International taxes 1,309 1,174 1,653
Total currently payable 4,057 3,799 2,247
Deferred:
U.S. taxes 37 (258) (251)
International taxes (307) 699 (356)
Total deferred (270) 441 (607)
Provision for taxes on income $3,787 4,240 1,640
A comparison of income tax expense at the U.S. statutory rate of 35% in 2015, 2014 and 2013, to the Company’s
effective tax rate is as follows:
(Dollars in Millions) 2015 2014 2013
U.S. $8,179 8,001 4,261
International 11,017 12,562 11,210
Earnings before taxes on income: $19,196 20,563 15,471
Tax rates:
U.S. statutory rate 35.0% 35.0 35.0
International operations excluding Ireland (6.7) (7.0) (10.6)
Ireland and Puerto Rico operations(1) (8.7) (6.9) (9.0)
Research and orphan drug tax credits (0.2) (0.3) (0.8)
U.S. state and local 0.4 1.0 0.4
U.S. manufacturing deduction (0.6) (0.6) (0.8)
U.S. tax on international income 0.2 1.4 1.7
U.S. tax benefit on asset/business disposals – (1.9) (5.1)
All other 0.3 (0.1) (0.2)
Effective tax rate 19.7% 20.6 10.6
(1) The Company has subsidiaries operating in Puerto Rico under various tax incentives.
The 2015 effective tax rate decrease as compared to 2014 was primarily attributable to the increases in taxable income in
lower tax jurisdictions relative to higher tax jurisdictions and a tax benefit resulting from a restructuring of international
affiliates. Additionally, the 2014 effective tax rate was affected by the items mentioned below.
The increase in the 2014 effective tax rate, as compared to 2013, was attributable to the following: the divestiture of the
Ortho-Clinical Diagnostics business at an approximate 44% effective tax rate, litigation accruals at low tax rates, the mix of
earnings into higher tax jurisdictions, primarily the U.S., the accrual of an additional year of the Branded Prescription Drug
Fee, which is not tax deductible, and additional U.S. tax expense related to a planned increase in dividends from current
year foreign earnings as compared to the prior year. These increases to the 2014 effective tax rate were partially offset by
a tax benefit of $0.4 billion associated with the Conor Medsystems divestiture.
48 •Johnson & Johnson 2015 Annual Report