Computer Associates 2007 Annual Report Download - page 127

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The provision (benefit) for income taxes is allocated as follows:
(IN MILLIONS) 2007 2006 2005
YEAR ENDED MARCH 31,
Continuing operations $33 $(35) $7
Discontinued operations (1) (10) (1)
$32 $(45) $6
The tax expense (benefit) from continuing operations is reconciled to the tax expense from continuing operations computed
at the federal statutory rate as follows:
(IN MILLIONS) 2007 2006 2005
YEAR ENDED MARCH 31,
Tax expense at U.S. federal statutory rate $54 $42 $12
Increase in tax expense resulting from:
Nondeductible portion of class action settlement and litigation charge ——3
Federal tax cost of repatriation under the American Jobs Creation Act ——55
U.S. share-based compensation 86—
Effect of international operations, including foreign export benefit and nondeductible share-based
compensation (47) (84) (72)
Tax credits —— (26)
Foreign export benefit refund —(51) —
State taxes, net of federal tax benefit (17) 15
Valuation allowance 821 15
Other, net 27 30 15
Tax expense (benefit) from continuing operations $33 $ (35) $ 7
115