Kodak 2008 Annual Report Download - page 82

80
NOTE 15: INCOME TAXES
The components of loss from continuing operations before income taxes and the related (benefit) provision for U.S. and other
income taxes were as follows:
For the Year Ended December 31,
(in millions) 2008 2007
2006
(Loss) earnings from continuing
operations before income taxes:
U.S. $ (382) $ (354)
$ (559)
Outside the U.S. (492) 98
(24)
Total $ (874) $ (256)
$ (583)
U.S. income taxes:
Current (benefit) provision $ (278) $ (237)
$ 196
Deferred provision (benefit) 15 11
(145)
Income taxes outside the U.S.:
Current provision 72 141
100
Deferred provision 38 49
38
State and other income taxes:
Current provision (benefit) 7 (15)
45
Deferred benefit (1) -
(13)
Total (benefit) provision $ (147) $ (51)
$ 221
The differences between income taxes computed using the U.S. federal income tax rate and the (benefit) provision for income taxes
for continuing operations were as follows:
For the Year Ended December 31,
(in millions) 2008
2007
2006
Amount computed using the statutory rate $ (306)
$ (90)
$ (204)
Increase (reduction) in taxes
resulting from:
State and other income taxes, net of federal 4
(15)
32
Export sales and manufacturing credits -
-
(10)
Foreign tax credits benefitted -
(76)
-
Impact of goodwill impairment 229
-
-
Operations outside the U.S. 31
54
40
Valuation allowance 146
152
393
Tax settlements and adjustments, including interest (248)
(65)
(10)
Other, net (3)
(11)
(20)
(Benefit) provision for income taxes $ (147)
$ (51)
$ 221
In June 2008, the Company received a tax refund from the U.S. Internal Revenue Service (“IRS”) of $581 million. The refund is
related to the audit of certain claims filed for tax years 1993-1998, and is composed of a refund of past federal income taxes paid of
$306 million and $275 million of interest earned on the refund. The federal tax refund claim related primarily to a 1994 loss
recognized on the Company’s sale of stock of a subsidiary, Sterling Winthrop Inc., which was originally disallowed under IRS
regulations in effect at that time. The IRS subsequently issued revised regulations that served as the basis for this refund.