Kraft 2006 Annual Report Download - page 81

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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,
2006
2005
2004
(in millions)
Earnings from continuing operations $ 3,060 $ 2,904 $ 2,669
Loss from discontinued operations (272) (4)
Net earnings $ 3,060 $ 2,632 $ 2,665
Weighted average shares for basic EPS 1,643 1,684 1,709
Plus incremental shares from assumed conversions of stock options, restricted stock and stock rights 12 9 5
Weighted average shares for diluted EPS 1,655 1,693 1,714
For the years ended December 31, 2006, 2005 and 2004, the number of stock options excluded from the calculation of weighted average shares for diluted
EPS because their effects were antidilutive was immaterial.
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, 2006, 2005 and 2004:
2006
2005
2004
(in millions)
Earnings from continuing operations before income taxes and minority interest:
United States $ 2,754 $ 2,774 $ 2,616
Outside United States 1,262 1,342 1,330
Total $ 4,016 $ 4,116 $ 3,946
Provision for income taxes:
United States federal:
Current $ 613 $ 876 $ 675
Deferred (150) (210) 69
463 666 744
State and local 95 115 112
Total United States 558 781 856
Outside United States:
Current 411 466 403
Deferred (18) (38) 15
Total outside United States 393 428 418
Total provision for income taxes $ 951 $ 1,209 $ 1,274
During 2006, the United States Internal Revenue Service concluded its examination of Altria Group, Inc.'s consolidated tax returns for the years 1996
through 1999 and issued a final Revenue Agents Report on March 15, 2006. Consequently, Altria Group, Inc. reimbursed the Company in cash for unrequired
federal tax reserves of $337 million and pre-tax interest of $46 million ($29 million after-tax).
76
Source: KRAFT FOODS INC, 10-K, March 01, 2007