Kodak 2007 Annual Report Download - page 71

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The differences between income taxes computed using the U.S. federal income tax rate and the provision (benefit) for income taxes for continuing opera-
tions were as follows:
For the Year Ended December 31,
(in millions) 2007 2006 2005
Amount computed using the statutory rate $ (90) $ (204) $ (422)
Increase (reduction) in taxes resulting from:
State and other income taxes, net of federal (15) 32 (2)
Export sales and manufacturing credits — (10) (22)
Foreign tax credits benefitted (76) — —
Operations outside the U.S. 54 40 (30)
Valuation allowance 152 393 955
Tax settlements and adjustments, including interest (65) (10) (13)
Other, net (11) (20) (17)
(Benefit) provision for income taxes $ (51) $ 221 $ 449
Deferred Tax Assets and Liabilities
The significant components of deferred tax assets and liabilities were as follows:
As of December 31,
(in millions) 2007 2006
Deferred tax assets
Pension and postretirement obligations $ 347 $ 935
Restructuring programs 44 126
Foreign tax credit 209 353
Investment tax credits 211 147
Employee deferred compensation 147 143
Tax loss carryforwards 577 554
Other deferred revenue 218 214
Other 455 475
Total deferred tax assets $ 2,208 $ 2,947
Deferred tax liabilities
Depreciation 85 177
Leasing 66 71
Inventories 49 74
Other 112 130
Total deferred tax liabilities 312 452
Net deferred tax assets before valuation allowance 1,896 2,495
Valuation allowance 1,249 1,849
Net deferred tax assets $ 647 $ 646