Table of Contents 5. Other income (expense) 6. Income taxes Reconciliation of the U.S. federal statutory rate to effective rate: Included in the line item above labeled “Non-U.S. subsidiaries taxed at other than the U.S. rate” are the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances and other permanent differences between tax and U.S. GAAP results. The line item above labeled "Prior year tax adjustments" was an adjustment to prior year U.S. taxes including the impact of regulations received in 2020. 91  Excludes amounts included in valuation allowances, mandatory deemed repatriation of non-U.S. earnings, and net excess tax benefits from stock- based compensation. 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 4 for further details. 1  Years ended December 31, (Millions of dollars) 2020 2019 2018 Investment and interest income $ 112 $ 202  $ 195  Foreign exchange gains (losses)  (193) (67) (201) License fee income 104 121  125  Gains (losses) on securities 37 65  (29) Net periodic pension and OPEB income (cost), excluding service cost (90) (363) (118) Miscellaneous income (loss) (14) (15) (39) Total $ (44) $ (57) $ (67) 1  Years ended December 31, (Millions of dollars) 2020 2019 2018 Taxes at U.S. statutory rate $ 839 21.0 % $ 1,641  21.0 % $ 1,643  21.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than the U.S. rate 285 7.1 % 365  4.7 % 282  3.6 % State and local taxes, net of federal  32 0.8 % 59  0.8 % 22  0.3 % Interest and penalties, net of tax 28 0.7 % 34  0.4 % 33  0.4 % U.S. tax incentives (52) (1.3)% (149) (1.9)% (106) (1.3)% Net excess tax benefits from stock-based compensation (49) (1.2)% (41) (0.5)% (56) (0.7)% Prior year tax adjustments (80) (2.0)% —  — % —  — % Mandatory deemed repatriation of non-U.S. earnings — — % (178) (2.3)% 50  0.7 % U.S. deferred tax rate change — — % —  — % (154) (2.0)% Valuation allowances — — % —  — % (29) (0.4)% Other—net 3 0.1 % 15  0.2 % 13  0.1 % Provision (benefit) for income taxes $ 1,006 25.2 % $ 1,746  22.4 % $ 1,698  21.7 % 1