Kraft 2010 Annual Report Download - page 96

Our 2010 effective tax rate included net tax benefits of $123 million, primarily due to the favorable resolution of a federal tax audit and the resolution of
several items in our international operations, partially offset by a $137 million write-off of deferred tax assets as a result of the U.S. health care legislation
enacted in March 2010.
Our 2009 effective tax rate included net tax benefits of $225 million, primarily due to an agreement we reached with the IRS on specific matters related to
years 2000 through 2003, settlements with various foreign and state tax authorities, the expiration of the statutes of limitations in various jurisdictions and the
divestiture of our Balance bar operations in the U.S.
Our 2008 effective tax rate included net tax benefits of $222 million from discrete tax events. Of the total net tax benefits, approximately $50 million related
to fourth quarter corrections of state, federal and foreign tax liabilities and a third quarter reconciliation of our inventory of deferred tax items that resulted in a
write-down of our net deferred tax liabilities. The remaining net tax benefits primarily related to the resolution of various tax audits and the expiration of
statutes of limitations in various jurisdictions. Other discrete tax benefits included the impact from divestitures of a
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