Harris Teeter 2007 Annual Report Download - page 51

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47
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Dividends of $6.4 million were distributed during fiscal 2005 to take advantage of the temporary tax
benefit of a dividend received deduction on the repatriation of cash dividends from foreign subsidiaries under the
American Jobs Creation Act of 2004. A dividend received deduction of $5.5 million was recognized as part of
the fiscal 2005 tax provision calculation. Income tax had not been previously provided on the majority of these
undistributed foreign earnings paid as dividends since they were considered permanently invested and thus
required no tax provision. The fiscal year 2005 net impact of providing tax on the foreign earnings and receiving
the dividend received deduction was not significant.