48 Eme r s on 2013 Ann u al R e por t At September 30 2013 there were no known contingent liabilities including guarantees pending litigation taxes and other claims that management believes will be material in relation to the Companys fnancial statements nor were there any material commitments outside the normal course of business 13 i ncome t axes Pretax earnings from continuing operations consist of the following 2011 2012 2013 United States 1891 1742 1724 NonUS 1740 1373 1472 Total pretax earnings from continuing operations 3631 3115 3196 The principal components of income tax expense follow 2011 2012 2013 Current Federal 503 750 704 State and local 37 61 60 NonUS 477 466 480 Deferred Federal 149 129 56 State and local 3 4 2 NonUS 42 53 60 Income tax expense 1127 1091 1130 Reconciliations of the US federal statutory tax rate to the Companys effective tax rate follow 2011 2012 2013 Federal rate 350 350 350 State and local taxes net of federal tax benefit 07 13 13 NonUS rate differential 35 40 48 NonUS tax holidays 10 17 18 US manufacturing deduction 11 14 16 Goodwill impairment 02 46 48 Embedded computing and power repatriation 22 Other 07 12 02 Effective income tax rate 310 350 353 NonUS tax holidays reduce tax rates in certain foreign jurisdictions and are expected to expire over the next four years Following are reconciliations of the beginning and ending balances of unrecognized tax benefts before recoverability of crossjurisdictional tax credits federal state and nonUS and temporary differences The amount of unrecognized tax benefts is not expected to signifcantly increase or decrease within the next 12 months 2012 2013 Beginning balance 162 157 Additions for current year tax positions 11 8 Additions for prior year tax positions 21 14 Reduction for prior year tax positions 14 26 Reduction for settlements with tax authorities 5 4 Reduction for expirations of statute of limitations 18 22 Ending balance 157 127