The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows: | ||||||||||||
(MILLIONS OF DOLLARS) | 2013 | 2012 | 2011 | |||||||||
Balance, beginning | $ | (6,315 | ) | $ | (7,309 | ) | $ | (6,759 | ) | |||
Acquisitions(a) | — | — | (72 | ) | ||||||||
Divestitures(b) | 29 | 85 | — | |||||||||
Increases based on tax positions taken during a prior period(c) | (205 | ) | (139 | ) | (502 | ) | ||||||
Decreases based on tax positions taken during a prior period(c), (d) | 876 | 1,442 | 271 | |||||||||
Decreases based on settlements for a prior period(e) | 571 | 647 | 575 | |||||||||
Increases based on tax positions taken during the current period(c) | (1,178 | ) | (1,125 | ) | (855 | ) | ||||||
Impact of foreign exchange | 38 | 78 | (89 | ) | ||||||||
Other, net(c), (f) | 97 | 6 | 122 | |||||||||
Balance, ending(g) | $ | (6,087 | ) | $ | (6,315 | ) | $ | (7,309 | ) | |||
(a) | The amount in 2011 primarily relates to the acquisition of King. See also Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisitions. |
(b) | Primarily relates to the sales of our Nutrition and Animal Health (Zoetis) businesses. See also Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Divestitures. |
(c) | Primarily included in Provision for taxes on income. |
(d) | Primarily related to effectively settling certain issues with the U.S. and foreign tax authorities. See also Note 5A. Tax Matters: Taxes on Income from Continuing Operations. |
(e) | Primarily related to cash payments. |
(f) | Includes decreases as a result of a lapse of applicable statutes of limitations. |
(g) | In 2013, included in Income taxes payable ($51 million), Current deferred tax assets and other current tax assets ($63 million), Noncurrent deferred tax assets and other noncurrent tax assets ($241 million), Noncurrent deferred tax liabilities ($2.3 billion) and Other taxes payable ($3.4 billion). In 2012, included in Income taxes payable ($36 million), Current deferred tax assets and other current tax assets ($30 million), Noncurrent deferred tax assets and other noncurrent tax assets ($169 million), Noncurrent deferred tax liabilities ($231 million) and Other taxes payable ($5.8 billion). |