Income Taxes
Fiscal year 2014 compared with fiscal year 2013
The effective tax rate on continuing operations decreased
170 basis points to 21.4% in 2014. The primary driver of
this rate decline was approximately 320 basis points from
the favorable geographic mix of earnings and approximately
60 basis points due to the non-deductibility of the prior year
impairment charges related to our Appliances business.
These impacts were partially offset by a 50 basis point
increase due to the Venezuela currency policy changes and
devaluation discussed below (which decreased the prior year
rate 20 basis points and increased the current year rate by 30
basis points), a 110 basis point increase due to the tax
impacts of acquisition and divestiture activities (the gains
from the purchase of the balance of the Baby Care and
Feminine Care joint venture in Iberia and the sale of our
Italy bleach business in the prior year), and a 30 basis point
increase is due to the net impact of favorable discrete
adjustments related to uncertain income tax positions. The
net benefit on the current year was $228 million, or 150
basis points, versus 180 basis points of net benefit in the
prior year.
Fiscal year 2013 compared with fiscal year 2012