ADT 2011 Annual Report Download - page 210

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. Income Taxes
Significant components of the income tax provision for 2011, 2010 and 2009 are as follows ($ in
millions):
2011 2010 2009
Current:
United States:
Federal ................................... $ (4) $ 45 $(60)
State ..................................... 10 28 8
Non U.S. ..................................... 229 194 137
Current income tax provision ..................... $235 $ 267 $ 85
Deferred:
United States:
Federal ................................... $ 45 $ (59) $ 22
State ..................................... 18 19 (11)
Non U.S. ..................................... 28 (89) (25)
Deferred income tax provision .................... $ 91 $(129) $(14)
$326 $ 138 $ 71
Non-U.S. income from continuing operations before income taxes was $2,119 million,
$1,507 million and $119 million for 2011, 2010, 2009, respectively.
The reconciliation between U.S. federal income taxes at the statutory rate and the Company’s
provision for income taxes on continuing operations for the years ended September 30, 2011,
September 24, 2010 and September 25, 2009 is as follows ($ in millions):
2011 2010 2009
Notional U.S. federal income tax (benefit) expense at the
statutory rate ................................. $663 $445 $(620)
Adjustments to reconcile to the income tax provision:
U.S. state income tax provision, net ................. 17 16 18
Non U.S. net earnings(1) ......................... (359) (376) (282)
Nondeductible charges .......................... 10 62 885
Valuation allowance ............................ (4) (19) 9
Other ....................................... (1) 10 61
Provision for income taxes ........................ $326 $138 $ 71
(1) Excludes nondeductible charges and other items which are broken out separately in the
table.
Included in nondeductible charges is an income tax benefit from favorable audit resolutions in
multiple jurisdictions during 2011.
Included in the Non-U.S. net earnings for 2010 is a $20 million tax benefit as a result of the
Company’s disposition of its French security business and a nonrecurring item generating a $30 million
tax benefit.
2011 Financials 107