22 Eme r s on 2013 Ann u al R e por t Ot H e R d edu C t IO n S n et Other deductions net were 362 million in 2013 a 39 million decrease from 2012 primarily due to a 41 million reduction in rationalization expense lower intangibles amortization expense of 21 million and other items partially offset by a gain of 43 million in 2012 from the receipt of dumping duties See Note 4 for further details regarding other deductions net and Note 5 regarding rationalization costs Other deductions net were 401 million in 2012 a 45 million increase from 2011 primarily due to an unfavorable impact from volatile foreign currency exchange rates higher rationalization expense of 38 million and a small loss on the sale of the Knaack storage business These items were partially offset by higher 2012 gains including 43 million from the receipt of dumping duties and lower intangibles amortization expense of 20 million Gains in 2011 included a 15 million Process Management India joint venture acquisition gain Inte R e S t e x P en S e n et Interest expense net was 218 million 224 million and 223 million in 2013 2012 and 2011 respectively The decrease of 6 million in 2013 was primarily due to the maturity of debt and the issuance of longterm debt in 2013 at relatively lower average interest rates In COM e t axe S Income taxes were 1130 million 1091 million and 1127 million for 2013 2012 and 2011 respectively resulting in effective tax rates of 35 percent 35 percent and 31 percent The higher effective tax rates in 2013 and 2012 were due to the low deductibility of goodwill impairment charges in each year and income tax charges in 2013 for anticipated repatriation of nonUS earnings related to embedded computing and power These items had an unfavorable 6 percentage point impact in 2013 and a 4 percentage point impact in 2012 e a R n I n GS FROM C O nt I nu I n G O P e R at IO n S Earnings from continuing operations attributable to common stockholders were 20 billion up 2 percent compared with 2012 Diluted earnings per share from continuing operations were 276 up 3 percent versus 267 in the prior year Goodwill impairment and related income tax charges totaled 566 million 078 per share and were 38 million and 006 per share higher than in 2012 Earnings increased 210 million in Process Management 48 million in Climate Technologies and 8 million in Commercial Residential Solutions Earnings decreased 94 million in Industrial Automation and 70 million in Network Power See the Business Segments discussion that follows and Note 16 for additional information Earnings from continuing operations attributable to common stockholders were 20 billion in 2012 a 20 percent decrease compared with 25 billion in 2011 Earnings per share from continuing operations were 267 an 18 percent decrease versus 324 in the prior year The decreases were primarily due to the 528 million 072 per share aftertax goodwill impairment charge in 2012 which reduced both earnings and earnings per share by 21 percent Earnings increased 197 million in Process Management 41 million in Industrial Automation and 21 million in Commercial Residential Solutions Earnings decreased 132 million in Network Power and 41 million in Climate Technologies dISCO nt I nued O P e R at IO n S In the fourth quarter of 2011 the Company sold its heating elements unit for 73 million resulting in an aftertax gain of 21 million Fourth quarter 2011 sales and earnings for heating elements were 12 million and 1 million respectively The aftertax gain on divestiture and fourth quarter operating results for heating elements plus the impact of fnalizing the 2010 Motors and LANDesk divestitures were classifed as discontinued operations in 2011 Prior years results of operations for heating elements were inconsequential and were not reclassifed See Note 3 for additional information net ea R n I n GS Dollars in billions Excludes charges of 566 million in 2013 528 million in 2012 and 19 million in 2011 09 17 13 12 11 10 22 25 26 2 6 B I ll I O n ne t e a R n I n G S I n 2013 25 13 12 20 20