Kraft 2004 Annual Report Download - page 68

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consolidated balance sheets as a reduction of earnings reinvested in the business, was $190 million and
$129 million at December 31, 2004 and 2003, respectively.
Note 12. Earnings Per Share:
Basic and diluted EPS from continuing and discontinued operations were calculated using the
following:
For the Years Ended
December 31,
2004 2003 2002
(in millions)
Earnings from continuing operations .......................... $2,669 $3,379 $3,297
(Loss) earnings from discontinued operations .................... (4) 97 97
Net earnings ........................................... $2,665 $3,476 $3,394
Weighted average shares for basic EPS ........................ 1,709 1,727 1,734
Plus incremental shares from assumed conversions:
Restricted stock and stock rights ........................... 5 1
Stock options ......................................... 2
Weighted average shares for diluted EPS ....................... 1,714 1,728 1,736
For the 2003 computation, 18 million Class A common stock options were excluded from the
calculation of weighted average shares for diluted EPS because their effects were antidilutive.
Note 13. Income Taxes:
Earnings from continuing operations before income taxes and minority interest, and provision for
income taxes consisted of the following for the years ended December 31, 2004, 2003 and 2002:
2004 2003 2002
(in millions)
Earnings from continuing operations before income taxes and minority
interest:
United States ......................................... $2,616 $3,574 $3,550
Outside United States ................................... 1,330 1,621 1,564
Total .............................................. $3,946 $5,195 $5,114
Provision for income taxes:
United States federal:
Current ............................................ $ 675 $ 967 $ 777
Deferred ........................................... 69 153 265
744 1,120 1,042
State and local ........................................ 112 145 133
Total United States ..................................... 856 1,265 1,175
Outside United States:
Current ............................................ 403 456 625
Deferred ........................................... 15 91 13
Total outside United States ................................ 418 547 638
Total provision for income taxes .............................. $1,274 $1,812 $1,813
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