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35 Dollar amounts in millions except per share amounts or as otherwise specified December 31, 2013, there was $7 of unrecognized compensation cost related to nonvested PSUs; that cost is expected to be recognized as expense over the weighted-average period of 1.0 year. Employee Stock Purchase Plans (ESPP) Full-time and part-time employees may participate in our ESPP provided they meet certain eligibility requirements. The purchase price for our common stock under the terms of the ESPP is defined as 95% of the closing stock price on the last trading day of a purchase period. During 2013 and 2012, we issued 163,533 and 196,267 shares, respectively, under the ESPP. NOTE 10 - RESTRUCTURING CHARGES In 2013, 2012 and 2011 we recorded $50 ($2 in cost of sales and $48 in selling, general and administrative expense), $75 and $76, respectively, in restructuring charges related to focused reductions of our global workforce and other restructuring initiatives. The targeted reductions and other restructuring activities were initiated to provide efficiencies and realign resources as well as to allow for continued investment in strategic areas and drive growth. For the years ended December 31, 2013 and 2012 we recorded $22 and $40, respectively, in severance and related costs and $25 and $32, respectively, in contractual and other obligations, as certain of our restructuring actions resulted in the discontinued use of specific assets and the exit of certain lease and other commitments. In both 2013 and 2012 we also recorded $3 in agent conversion expense. Our current restructuring actions were completed at the end of 2013, and we expect that the related cash payments will be substantially completed by the end of the first quarter of 2014. A summary of our restructuring liability balance and full-year restructuring activity is as follows: Total Agent Conversions Severance and Related Costs Contractual Obligations and Other 2013 2012 2011 2013 2012 2011 2013 2012 2011 2013 2012 2011 January 1 Balance $ 40 $ 28 $ 3 $ 5 $ 9 $ — $ 20 $ 10 $ 1 $ 15 $ 9 $ 2 Charges to earnings 50 75 76 3 3 6 22 40 38 25 32 32 Cash paid (54) (59) (29) (6) (7) — (30) (32) (29) (18) (20) — Other adjustments (16) (4) (22) — — 3 (2) 2 — (14) (6) (25) December 31 Balance $ 20 $ 40 $ 28 $ 2 $ 5 $ 9 $ 10 $ 20 $ 10 $ 8 $ 15 $ 9 NOTE 11 - INCOME TAXES Earnings before income taxes consisted of: 2013 2012 2011 United States $ 193 $ 591 $ 613 International 1,019 1,114 1,073 $1,212 $1,705 $1,686 Income taxes consisted of: 2013 2012 2011 Current income tax expense United States federal $ 79 $ 227 $ 100 United States state and local 29 41 33 International 75 178 372 Total current income tax expense 183 446 505 Deferred income tax expense (benefit) United States federal (52) (12) (16) United States state and local (4) (9) (9) International 79 (18) (139) Total deferred income tax benefit 23 (39) (164) Total income tax expense 206 407 341 Interest expense and penalties included in other income (expense) $ 12 $ (4) $ 36 In 2013 we recorded income tax benefits related to favorable audit resolutions in multiple jurisdictions. In 2011 we recorded an income tax benefit related to a favorable settlement with the United States Internal Revenue Service (IRS) regarding its proposed adjustment to our previously filed 2003 through 2007 income tax returns related to income tax positions we had taken for our cost sharing arrangements with two wholly-owned entities operating in Ireland, and we recorded charges for other uncertain tax positions related to the outcome of the IRS settlements. The net income tax benefit of these adjustments was $82. Reconciliation of the United States federal statutory income tax rate to our effective income tax rate: 2013 2012 2011 United States federal statutory income tax rate 35.0% 35.0% 35.0% Add (deduct): United States state and local income taxes, less federal deduction 1.4 1.7 0.9 International operations (13.7) (12.1) (13.7) Repatriation of foreign earnings — (0.4) 1.1 Other (5.7) (0.3) (3.1) 17.0% 23.9% 20.2%