Halliburton 2011 Annual Report Download - page 117

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102
Note 9. Income Taxes
The components of the (provision)/benefit for income taxes on continuing operations were:
Year Ended December 31
Millions of dollars 2011 2010 2009
Current income taxes:
Federal $ (1,026) $ (400) $ 30
Foreign (334) (287) (250)
State (109) (42) (24)
Total current (1,469) (729) (244)
Deferred income taxes:
Federal (28) (124) (237)
Foreign 57 3 (31)
State 1 (3) (6)
Total deferred 30 (124) (274)
Provision for income taxes $ (1,439) $ (853) $ (518)
The United States and foreign components of income from continuing operations before income
taxes were as follows:
Year Ended December 31
Millions of dollars
2011 2010 2009
United States $ 4,040 $ 1,918 $ 589
Foreign 409 737 1,093
Total $ 4,449 $ 2,655 $ 1,682
Reconciliations between the actual provision for income taxes on continuing operations and that
computed by applying the United States statutory rate to income from continuing operations before income
taxes were as follows:
Year Ended December 31
2011 2010 2009
United States statutory rate 35.0% 35.0% 35.0%
Domestic manufacturing deduction (2.1) (1.8) –
Adjustments of prior year taxes (1.3) (1.2) (2.1)
Impact of foreign income taxed at different rates (0.5) (1.3) (3.3)
Other impact of foreign operations (0.4) (1.3) (0.4)
Impact of devaluation of Venezuelan Bolívar Fuerte – 0.8 –
Other items, net 1.6 1.9 1.6
Total effective tax rate on continuing operations 32.3% 32.1% 30.8%
We have not provided United States income taxes and foreign withholding taxes on the
undistributed earnings of foreign subsidiaries as of December 31, 2011 because we intend to permanently
reinvest such earnings outside the United States. If these foreign earnings were to be repatriated in the
future, the related United States tax liability may be reduced by any foreign income taxes previously paid
on these earnings. As of December 31, 2011, the cumulative amount of earnings upon which United States
income taxes have not been provided is approximately $4.1 billion. It is not possible to estimate the amount
of unrecognized deferred tax liability related to these earnings at this time.