IBM 1997 Annual Report Download - page 64

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62
notes to consolidated financial statements
International Business Machines Corporation
and Subsidiary Companies
N Taxes
(Dollars in millions)
For the year ended December 31: 1997 1996 1995
Earnings before income taxes:
U.S. operations $3,193 $3,025 $2,149
Non-U.S. operations 5,834 5,562 5,664
__________________ _________________ __________________
$9,027 $8,587 $7,813
The provision for income taxes by geographic operations
is as follows:
U.S. operations $974 $1,137 $1,538
Non-U.S. operations 1,960 2,021 2,097
__________________ _________________ __________________
Total provision for income taxes $2,934 $3,158 $3,635
The components of the provision for income taxes by
taxing jurisdiction are as follows:
U.S. federal:
Current $163 $727 $85
Deferred 349 83 1,075
__________________ _________________ __________________
512 810 1,160
U.S. state and local:
Current 83 158 65
Deferred (87) (353) –
__________________ _________________ __________________
(4) (195) 65
Non-U.S.:
Current 2,330 2,262 2,093
Deferred 96 281 317
__________________ _________________ __________________
2,426 2,543 2,410
__________________ _________________ __________________
Total provision for income taxes 2,934 3,158 3,635
Provision for social security, real estate,
personal property and other taxes 2,774 2,584 2,566
__________________ _________________ __________________
Total provision for taxes $5,708 $5,742 $6,201
The effect of tax law changes on deferred tax assets and liabilities did not have a significant impact on the company’s
effective tax rate.