CATERPILLAR INC | 2013 | FY | 3


Reconciliation of the U.S. federal statutory rate to effective rate:
 
(Millions of dollars)
 
Years ended December 31,
 
 
2013
 
2012
 
2011
Taxes at U.S. statutory rate
 
$
1,795

 
35.0
 %
 
$
2,882

 
35.0
 %
 
$
2,354

 
35.0
 %
(Decreases) increases in taxes resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

Non-U.S. subsidiaries taxed at other than 35%
 
(268
)
 
(5.2
)%
 
(342
)
 
(4.2
)%
 
(467
)
 
(6.9
)%
State and local taxes, net of federal
 
23

 
0.4
 %
 
55

 
0.7
 %
 
30

 
0.4
 %
Interest and penalties, net of tax
 
4

 
0.1
 %
 
22

 
0.3
 %
 
25

 
0.4
 %
U.S. research and production incentives
 
(91
)
 
(1.8
)%
 
(80
)
 
(1.0
)%
 
(152
)
 
(2.3
)%
Other—net
 
(2
)
 
 %
 
(27
)
 
(0.3
)%
 
(7
)
 
(0.1
)%
 
 
1,461

 
28.5
 %
 
2,510

 
30.5
 %
 
1,783

 
26.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior year tax and interest adjustments
 
(55
)
 
(1.1
)%
 
(300
)
 
(3.7
)%
 
41

 
0.6
 %
Nondeductible goodwill
 

 
 %
 
318

 
3.9
 %
 
33

 
0.5
 %
Release of valuation allowances
 

 
 %
 

 
 %
 
(24
)
 
(0.3
)%
Non-U.S. earnings reinvestment changes
 

 
 %
 

 
 %
 
(113
)
 
(1.7
)%
Tax law changes

(87
)

(1.7
)%



 %



 %
Provision (benefit) for income taxes
 
$
1,319

 
25.7
 %
 
$
2,528

 
30.7
 %
 
$
1,720

 
25.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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