Honeywell 2003 Annual Report Download - page 383

NOTE 6--INTEREST AND OTHER FINANCIAL CHARGES
Years Ended December 31,
------------------------
(Dollars in Millions) 2003 2002 2001
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Total interest and other financial charges ............ $350 $365 $422
Less--capitalized interest ............................ (15) (21) (17)
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$335 $344 $405
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The weighted average interest rate on short-term borrowings and commercial paper
outstanding at December 31, 2003 and 2002 was 6.81 and 1.23 percent,
respectively.
NOTE 7--INCOME TAXES
Income (loss) before taxes and cumulative effect of accounting change
Years Ended December 31,
-------------------------
(Dollars in Millions) 2003 2002 2001
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United States ......................................... $ 925 $(1,262) $(751)
Foreign ............................................... 715 317 329
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$1,640 $ (945) $(422)
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Tax expense (benefit)
Years Ended December 31,
------------------------
(Dollars in Millions) 2003 2002 2001
----------------------------------------------------------------------------------
United States ......................................... $ 98 $(894) $(472)
Foreign ............................................... 198 169 149
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$296 $(725) $(323)
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Years Ended December 31,
------------------------
(Dollars in Millions) 2003 2002 2001
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Tax expense (benefit) consist of:
Current:
United States ...................................... $(251) $(175) $ (47)
State .............................................. (1) 28 (1)
Foreign ............................................ 204 197 172
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(48) 50 124
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Deferred:
United States ...................................... 347 (679) (336)
State .............................................. 3 (68) (88)
Foreign ............................................ (6) (28) (23)
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344 (775) (447)
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$ 296 $(725) $(323)
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Years Ended December 31,
------------------------
(Dollars in Millions) 2003 2002 2001
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The U.S. statutory federal income tax rate is
reconciled to our effective income tax rate as
follows:
Statutory U.S. federal income tax rate ............. 35.0% (35.0)% (35.0)%
Taxes on foreign earnings over (under)
U.S. tax rate (1) ............................... (5.0) 10.0 15.3
Asset basis differences ............................ (2.2) (33.1) (18.5)
Nondeductible amortization ......................... 1.9 2.4 13.4
State income taxes(1) .............................. .4 (2.6) (9.3)
Tax benefits on export sales ....................... (3.6) (8.5) (25.4)
ESOP dividend tax benefit .......................... (1.2) (1.9) (4.3)