2013 | 2012 | 2011 | ||||
Statutory U.S. federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % |
Exchange gains/losses1 | 0.8 | 0.1 | (0.8 | ) | ||
Domestic operations | (3.2 | ) | (2.3 | ) | (2.5 | ) |
Lower effective tax rates on international operations-net2 | (12.3 | ) | (10.9 | ) | (11.6 | ) |
Tax settlements | (0.2 | ) | (2.0 | ) | (0.2 | ) |
Sale of a business | — | — | (2.3 | ) | ||
U.S. research & development credit 2 | (2.2 | ) | — | (0.9 | ) | |
17.9 | % | 19.9 | % | 16.7 | % | |
1. | Principally reflects the impact of non-taxable exchange gains and losses resulting from remeasurement of foreign currency-denominated monetary assets and liabilities. Further information about the company's foreign currency hedging program is included in Note 20 under the heading Foreign Currency Risk. |
2. | On January 2, 2013, U.S. tax law was enacted which extended through 2013 (and retroactive to 2012) several expired or expiring temporary business tax provisions. In accordance with GAAP, this extension was taken into account in the quarter in which the legislation was enacted (i.e. first quarter 2013). |