Ford 2002 Annual Report Download - page 72

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68
NOTE 2. INCOME TAXES
Components of income taxes, excluding equity in net results of affiliated companies accounted for after-tax:
2002 2001 2000
Income/(loss) before income taxes (in millions)
U.S. $ 1,112 $ (5,785) $ 9,394
Non-U.S. (79) (786) (1,004)
Total $ 1,033 $ (6,571) $ 8,390
Provision for income taxes (in millions)
Current:
Federal $ (423) $ 22 $ 154
Non-U.S. 548 103 760
State and local -- 116
Total Current 125 125 1,030
Deferred:
Federal 224 (2,072) 2,632
Non-U.S. (120) (248) (1,153)
State and local 73 98 211
Total Deferred 177 (2,222) 1,690
Total $ 302 $ (2,097) $ 2,720
Reconciliation of effective tax rate
U.S. statutory rate 35% 35% 35%
Non-U.S. income taxes (3) (2) (2)
State and local income taxes 5(1) 3
Deductible dividends (8) 2(1)
General business credits (20) 20
Dispositions and restructurings 20 01
Other 0(4) (4)
Effective Rate 29% 32% 32%
Deferred taxes at December 31 (in millions) 2002 2001
Deferred tax assets
Employee benefit plans $ 8,219 $ 4,900
Dealer and customer allowances and claims 3,132 3,360
Tax credit carryforwards 2,085 718
Allowance for credit losses 1,886 1,533
Other foreign deferred tax assets 2,135 1,680
All other 3,089 3,239
Total deferred tax assets 20,546 15,430
Deferred tax liabilities
Leasing transactions 8,418 8,213
Depreciation and amortization
(excluding leasing transactions) 4,814 3,887
Finance receivables 2,837 2,388
All other 3,825 2,648
Total deferred tax liabilities 19,894 17,136
Net deferred tax assets/(liabilities) $ 652 $ (1,706)
No provision for deferred taxes has been made on $860 million of unremitted earnings (primarily related to periods prior to
1998) which are considered to be indefinitely invested in non-U.S. subsidiaries. Deferred taxes for these unremitted earnings
are not practicable to estimate.
Operating loss carryforwards for tax purposes were $3.6 billion at December 31, 2002. A substantial portion of these losses
has an indefinite carryforward period; the remaining losses will begin to expire in 2003. Tax credits available to offset future
tax liabilities are $2.1 billion. A substantial portion has an indefinite carryforward period; the remainder begins to expire in
2005. Tax benefits of operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of
historical and projected future operating results, the eligible carryforward period, and other circumstances.
NOTES TO FINANCIAL STATEMENTS