Caterpillar Inc. (CAT) | Income Taxes

Income Tax Accounting Policy

The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

Source: Caterpillar Inc., Annual Report

Income Tax Expense (Benefit)

Caterpillar Inc., income tax expense (benefit), continuing operations

USD $ in millions

12 months ended	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
U.S.	971	750	247	(443)	673
Non-U.S.	1,250	1,014	645	350	446
State (U.S.)	56	72	44	(13)	41
Current tax provision (benefit)	2,277	1,836	936	(106)	1,160
U.S.	332	2	103	1	(335)
Non-U.S.	(89)	(92)	(75)	(149)	99
State (U.S.)	8	(26)	4	(16)	29
Deferred tax provision (benefit)	251	(116)	32	(164)	(207)
Provision (benefit) for income taxes	2,528	1,720	968	(270)	953

Source: Based on data from Caterpillar Inc. Annual Reports

Item	Description	The company
Current tax provision (benefit)	The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations.	Caterpillar Inc.'s current tax provision (benefit) increased from 2010 to 2011 and from 2011 to 2012.
Deferred tax provision (benefit)	The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations.	Caterpillar Inc.'s deferred tax provision (benefit) declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level.
Provision (benefit) for income taxes	The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to pretax income (loss) from continuing operations; income tax expense (benefit) may include interest and penalties on tax uncertainties based on the entity's accounting policy.	Caterpillar Inc.'s provision (benefit) for income taxes increased from 2010 to 2011 and from 2011 to 2012.

Effective Income Tax Rate (EITR)

Caterpillar Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Taxes at U.S. statutory rate	35.00%	35.00%	35.00%	35.00%	35.00%
Non-U.S. subsidiaries taxed at other than 35%	-4.20%	-6.90%	-9.00%	-46.00%	-2.60%
State and local taxes, net of federal	0.70%	0.40%	0.70%	-3.30%	1.00%
Interest and penalties, net of tax	0.30%	0.40%	0.40%	3.50%	0.20%
U.S. research and production incentives	-1.00%	-2.30%	-1.50%	-8.20%	-0.80%
Other, net	-0.30%	-0.10%	-0.60%	-5.10%	-1.30%
Increases (decreases) in taxes	-4.50%	-8.50%	-10.00%	-59.10%	-3.50%
Prior year tax and interest adjustments	-3.70%	0.60%	-0.90%	-23.40%	–%
Nondeductible goodwill	3.90%	0.50%	–%	–%	–%
Release of valuation allowances	–%	-0.30%	-0.70%	–%	–%
Non-U.S. earnings reinvestment changes	–%	-1.70%	–%	–%	-10.20%
Tax law change related to Medicare subsidies	–%	–%	2.40%	–%	–%
Effective rate	30.70%	25.60%	25.80%	-47.50%	21.30%

Source: Based on data from Caterpillar Inc. Annual Reports

Item	Description	The company
Effective rate	A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations.	Caterpillar Inc.'s effective rate declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level.

Components of Deferred Tax Assets and Liabilities

Caterpillar Inc., components of deferred tax assets and liabilities

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Pension	2,100	2,130	1,065	1,207	1,888
Postemployment benefits other than pensions	1,678	1,622	1,501	1,362	1,530
Tax carryforwards	663	821	1,117	1,185	712
Warranty reserves	358	338	253	243	312
Stock-based compensation	281	232	215	182	148
Inventory	195	372	269	229	275
Allowance for credit losses	170	131	111	102	134
Post sale discounts	141	141	142	112	140
Deferred compensation	110	102	106	95	78
Other, net	491	645	394	396	427
Deferred income tax assets, gross	6,187	6,534	5,173	5,113	5,644
Valuation allowance for deferred tax assets	(586)	(470)	(412)	(475)	(334)
Deferred income tax assets	5,601	6,064	4,761	4,638	5,310
Capital and intangible assets	(2,759)	(2,743)	(1,423)	(1,185)	(1,233)
Bond discount	(249)	–	–	–	–
Translation	(173)	(193)	(169)	(96)	(133)
Undistributed profits of non-U.S. subsidiaries	(128)	(215)	–	–	–
Deferred income tax liabilities	(3,309)	(3,151)	(1,592)	(1,281)	(1,366)
Deferred income taxes, net	2,292	2,913	3,169	3,357	3,944

Source: Based on data from Caterpillar Inc. Annual Reports

Item	Description	The company
Deferred income tax assets, gross	The sum of the tax effects as of the balance sheet date of the amounts of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws (before the valuation allowance, if any, to reduce such sum amount to net realizable value). Includes any tax benefit realized in deferred tax assets for significant impacts of tax planning strategies.	Caterpillar Inc.'s deferred income tax assets, gross increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
Deferred income tax assets	The aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; net of deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value.	Caterpillar Inc.'s deferred income tax assets increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
Deferred income taxes, net	For entities that net deferred tax assets and tax liabilities, represents the unclassified net amount of deferred tax assets and liabilities as of the balance sheet date, which result from applying the applicable enacted tax rate to net temporary differences and carryforwards pertaining to assets or liabilities. A temporary difference is a difference between the tax basis of an asset or liability and its carrying amount in the financial statements prepared in accordance with generally accepted accounting principles that will reverse in ensuing periods.	Caterpillar Inc.'s deferred income taxes, net declined from 2010 to 2011 and from 2011 to 2012.

Deferred Tax Assets and Liabilities, Classification

Caterpillar Inc., deferred tax assets and liabilities, classification

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Current deferred income tax assets (included in deferred and refundable income taxes)	979	1,384	824	802	785
Noncurrent deferred income tax assets (included in noncurrent deferred and refundable income taxes)	1,863	2,157	2,493	2,704	3,298
Current deferred tax liabilities (included in other current liabilities)	66	69	7	11	9
Noncurrent deferred tax liabilities (included in other liabilities)	484	559	141	138	130

Source: Based on data from Caterpillar Inc. Annual Reports

Item	Description	The company
Current deferred income tax assets (included in deferred and refundable income taxes)	The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset.	Caterpillar Inc.'s current deferred income tax assets (included in deferred and refundable income taxes) increased from 2010 to 2011 but then slightly declined from 2011 to 2012 not reaching 2010 level.
Noncurrent deferred income tax assets (included in noncurrent deferred and refundable income taxes)	The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.	Caterpillar Inc.'s noncurrent deferred income tax assets (included in noncurrent deferred and refundable income taxes) declined from 2010 to 2011 and from 2011 to 2012.
Current deferred tax liabilities (included in other current liabilities)	Represents the current portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A current taxable temporary difference is a difference between the tax basis and the carrying amount of a current asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.	Caterpillar Inc.'s current deferred tax liabilities (included in other current liabilities) increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
Noncurrent deferred tax liabilities (included in other liabilities)	Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.	Caterpillar Inc.'s noncurrent deferred tax liabilities (included in other liabilities) increased from 2010 to 2011 but then slightly declined from 2011 to 2012.

Analyst Adjustments: Removal of Deferred Taxes

Caterpillar Inc., adjustments to financial data

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Adjustment to Current Assets
Current assets (as reported)	42,524	38,128	31,810	26,789	31,633
Less: Current deferred tax assets, net	979	1,384	824	802	785
Current assets (adjusted)	41,545	36,744	30,986	25,987	30,848
Adjustment to Total Assets
Total assets (as reported)	89,356	81,446	64,020	60,038	67,782
Less: Current deferred tax assets, net	979	1,384	824	802	785
Less: Noncurrent deferred tax assets, net	1,863	2,157	2,493	2,704	3,298
Total assets (adjusted)	86,514	77,905	60,703	56,532	63,699
Adjustment to Current Liabilities
Current liabilities (as reported)	29,755	28,561	22,020	19,292	26,069
Less: Current deferred tax liabilities, net	66	69	7	11	9
Current liabilities (adjusted)	29,689	28,492	22,013	19,281	26,060
Adjustment to Total Liabilities
Total liabilities (as reported)	71,774	68,044	52,695	50,738	61,068
Less: Current deferred tax liabilities, net	66	69	7	11	9
Less: Noncurrent deferred tax liabilities, net	484	559	141	138	130
Total liabilities (adjusted)	71,224	67,416	52,547	50,589	60,929
Adjustment to Equity Attributable To Common Stockholders
Equity attributable to common stockholders (as reported)	17,532	12,883	10,824	8,740	6,087
Less: Current deferred tax assets, net	979	1,384	824	802	785
Less: Noncurrent deferred tax assets, net	1,863	2,157	2,493	2,704	3,298
Add: Current deferred tax liabilities, net	66	69	7	11	9
Add: Noncurrent deferred tax liabilities, net	484	559	141	138	130
Equity attributable to common stockholders (adjusted)	15,240	9,970	7,655	5,383	2,143
Adjustment to Profit Attributable To Common Stockholders
Profit attributable to common stockholders (as reported)	5,681	4,928	2,700	895	3,557
Add: Deferred income tax expense (benefit)	251	(116)	32	(164)	(207)
Profit attributable to common stockholders (adjusted)	5,932	4,812	2,732	731	3,350

Adjusted Ratios: Removal of Deferred Taxes (Summary)

Caterpillar Inc., adjusted ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Current Ratio
Reported current ratio	1.43	1.33	1.44	1.39	1.21
Adjusted current ratio	1.40	1.29	1.41	1.35	1.18
Net Profit Margin
Reported net profit margin	8.62%	8.19%	6.34%	2.76%	6.93%
Adjusted net profit margin	9.00%	8.00%	6.41%	2.26%	6.53%
Total Asset Turnover
Reported total asset turnover	0.74	0.74	0.67	0.54	0.76
Adjusted total asset turnover	0.76	0.77	0.70	0.57	0.81
Financial Leverage
Reported financial leverage	5.10	6.32	5.91	6.87	11.14
Adjusted financial leverage	5.68	7.81	7.93	10.50	29.72
Return on Equity (ROE)
Reported ROE	32.40%	38.25%	24.94%	10.24%	58.44%
Adjusted ROE	38.92%	48.26%	35.69%	13.58%	156.32%
Return on Assets (ROA)
Reported ROA	6.36%	6.05%	4.22%	1.49%	5.25%
Adjusted ROA	6.86%	6.18%	4.50%	1.29%	5.26%

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Caterpillar Inc.'s adjusted current ratio deteriorated from 2010 to 2011 but then improved from 2011 to 2012 not reaching 2010 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Caterpillar Inc.'s adjusted net profit margin improved from 2010 to 2011 and from 2011 to 2012.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Caterpillar Inc.'s adjusted total asset turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Caterpillar Inc.'s adjusted financial leverage declined from 2010 to 2011 and from 2011 to 2012.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	Caterpillar Inc.'s adjusted ROE improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Caterpillar Inc.'s adjusted ROA improved from 2010 to 2011 and from 2011 to 2012.

Adjusted Current Ratio

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Current assets (USD $ in millions)	42,524	38,128	31,810	26,789	31,633
Current liabilities (USD $ in millions)	29,755	28,561	22,020	19,292	26,069

Current ratio¹	1.43	1.33	1.44	1.39	1.21
Adjusted for Deferred Taxes
Adjusted current assets (USD $ in millions)	41,545	36,744	30,986	25,987	30,848
Adjusted current liabilities (USD $ in millions)	29,689	28,492	22,013	19,281	26,060

Adjusted current ratio²	1.40	1.29	1.41	1.35	1.18

2012 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 42,524 ÷ 29,755 = 1.43

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 41,545 ÷ 29,689 = 1.40

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Caterpillar Inc.'s adjusted current ratio deteriorated from 2010 to 2011 but then improved from 2011 to 2012 not reaching 2010 level.

Adjusted Net Profit Margin

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Profit attributable to common stockholders (USD $ in millions)	5,681	4,928	2,700	895	3,557
Sales and revenues (USD $ in millions)	65,875	60,138	42,588	32,396	51,324

Net profit margin¹	8.62%	8.19%	6.34%	2.76%	6.93%
Adjusted for Deferred Taxes
Adjusted profit attributable to common stockholders (USD $ in millions)	5,932	4,812	2,732	731	3,350
Sales and revenues (USD $ in millions)	65,875	60,138	42,588	32,396	51,324

Adjusted net profit margin²	9.00%	8.00%	6.41%	2.26%	6.53%

2012 Calculations

¹ Net profit margin = 100 × Profit attributable to common stockholders ÷ Sales and revenues
= 100 × 5,681 ÷ 65,875 = 8.62%

² Adjusted net profit margin = 100 × Adjusted profit attributable to common stockholders ÷ Sales and revenues
= 100 × 5,932 ÷ 65,875 = 9.00%

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Caterpillar Inc.'s adjusted net profit margin improved from 2010 to 2011 and from 2011 to 2012.

Adjusted Total Asset Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Sales and revenues (USD $ in millions)	65,875	60,138	42,588	32,396	51,324
Total assets (USD $ in millions)	89,356	81,446	64,020	60,038	67,782

Total asset turnover¹	0.74	0.74	0.67	0.54	0.76
Adjusted for Deferred Taxes
Sales and revenues (USD $ in millions)	65,875	60,138	42,588	32,396	51,324
Adjusted total assets (USD $ in millions)	86,514	77,905	60,703	56,532	63,699

Adjusted total asset turnover²	0.76	0.77	0.70	0.57	0.81

2012 Calculations

¹ Total asset turnover = Sales and revenues ÷ Total assets
= 65,875 ÷ 89,356 = 0.74

² Adjusted total asset turnover = Sales and revenues ÷ Adjusted total assets
= 65,875 ÷ 86,514 = 0.76

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Caterpillar Inc.'s adjusted total asset turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.

Adjusted Financial Leverage

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Total assets (USD $ in millions)	89,356	81,446	64,020	60,038	67,782
Equity attributable to common stockholders (USD $ in millions)	17,532	12,883	10,824	8,740	6,087

Financial leverage¹	5.10	6.32	5.91	6.87	11.14
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions)	86,514	77,905	60,703	56,532	63,699
Adjusted equity attributable to common stockholders (USD $ in millions)	15,240	9,970	7,655	5,383	2,143

Adjusted financial leverage²	5.68	7.81	7.93	10.50	29.72

2012 Calculations

¹ Financial leverage = Total assets ÷ Equity attributable to common stockholders
= 89,356 ÷ 17,532 = 5.10

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to common stockholders
= 86,514 ÷ 15,240 = 5.68

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Caterpillar Inc.'s adjusted financial leverage declined from 2010 to 2011 and from 2011 to 2012.

Adjusted Return On Equity (ROE)

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Profit attributable to common stockholders (USD $ in millions)	5,681	4,928	2,700	895	3,557
Equity attributable to common stockholders (USD $ in millions)	17,532	12,883	10,824	8,740	6,087

ROE¹	32.40%	38.25%	24.94%	10.24%	58.44%
Adjusted for Deferred Taxes
Adjusted profit attributable to common stockholders (USD $ in millions)	5,932	4,812	2,732	731	3,350
Adjusted equity attributable to common stockholders (USD $ in millions)	15,240	9,970	7,655	5,383	2,143

Adjusted ROE²	38.92%	48.26%	35.69%	13.58%	156.32%

2012 Calculations

¹ ROE = 100 × Profit attributable to common stockholders ÷ Equity attributable to common stockholders
= 100 × 5,681 ÷ 17,532 = 32.40%

² Adjusted ROE = 100 × Adjusted profit attributable to common stockholders ÷ Adjusted equity attributable to common stockholders
= 100 × 5,932 ÷ 15,240 = 38.92%

Ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	Caterpillar Inc.'s adjusted ROE improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.

Adjusted Return On Assets (ROA)

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Profit attributable to common stockholders (USD $ in millions)	5,681	4,928	2,700	895	3,557
Total assets (USD $ in millions)	89,356	81,446	64,020	60,038	67,782

ROA¹	6.36%	6.05%	4.22%	1.49%	5.25%
Adjusted for Deferred Taxes
Adjusted profit attributable to common stockholders (USD $ in millions)	5,932	4,812	2,732	731	3,350
Adjusted total assets (USD $ in millions)	86,514	77,905	60,703	56,532	63,699

Adjusted ROA²	6.86%	6.18%	4.50%	1.29%	5.26%

2012 Calculations

¹ ROA = 100 × Profit attributable to common stockholders ÷ Total assets
= 100 × 5,681 ÷ 89,356 = 6.36%

² Adjusted ROA = 100 × Adjusted profit attributable to common stockholders ÷ Adjusted total assets
= 100 × 5,932 ÷ 86,514 = 6.86%

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Caterpillar Inc.'s adjusted ROA improved from 2010 to 2011 and from 2011 to 2012.