ADT 2005 Annual Report Download - page 180

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. Income Taxes
Significant components of income tax provision for each year are as follows ($ in millions):
2005 2004 2003
Current:
United States:
Federal ................................... $349 $ 391 $173
State ..................................... 66 9 30
Non-U.S. .................................... 728 507 487
Current income tax provision ..................... 1,143 907 690
Deferred:
United States:
Federal ................................... (74) 138 (136)
State ..................................... 4 31 (128)
Non-U.S. .................................... (89) 47 303
Deferred income tax provision .................... (159) 216 39
$ 984 $1,123 $ 729
Non-U.S. income from continuing operations before income taxes was $2,516 million,
$3,340 million and $2,807 million for 2005, 2004 and 2003, respectively.
The reconciliation between U.S. federal income taxes at the statutory rate and the Company’s
provision for income taxes on continuing operations for the years ended September 30, 2005, 2004 and
2003 are as follows ($ in millions):
2005 2004 2003
Notional U.S. federal income tax expense at the statutory
rate ....................................... $1,467 $1,430 $ 565
Adjustments to reconcile to the income tax provision:
U.S. state income tax (benefit) provision, net ......... 48 41 (99)
Asset impairments ............................ (109) (19) 218
Non-U.S. net earnings(1) ........................ (594) (654) (407)
Nondeductible charges ......................... 197 273 284
Valuation allowance ........................... (281) (8) 102
Loss on retirement of debt ...................... 354 98 45
Other ..................................... (98) (38) 21
Provision for income taxes ...................... $ 984 $1,123 $ 729
(1) Excludes asset impairments, nondeductible charges, and other items which are broken out separately in the table.
104 2005 Financials