Safeway 2005 Annual Report Download - page 72

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
52
Note H: Taxes on Income
The components of income (loss) before tax expense is as follows (in millions):
2005 2004 2003
Domestic $723.7 $550.2 $ (86.2)
Foreign 125.3 243.7 227.3
$849.0 $793.9 $141.1
The components of income tax expense are as follows (in millions):
2005 2004 2003
Current:
Federal $389.4 $153.5 $251.5
State 59.1 25.7 51.8
Foreign 55.3 83.7 85.5
503.8 262.9 388.8
Deferred:
Federal (186.2) (17.4) (48.5)
State (17.6) (10.6) (24.5)
Foreign (12.1) (1.2) (4.9)
(215.9) (29.2) (77.9)
$287.9 $233.7 $310.9
Reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate to the Company's income taxes
is as follows (dollars in millions):
2005 2004 2003
Statutory rate 35% 35% 35%
Income tax expense using federal statutory rate $297.2 $277.9 $ 49.4
State taxes on income net of federal benefit 27.0 9.8 17.7
Nondeductible goodwill impairment −−255.2
Equity earnings of foreign affiliates (0.9) (1.5) 7.0
Charitable donations of inventory (11.1) (9.8) (8.5)
Affiliate’s losses not currently benefitted 2.7 3.3 4.1
Tax settlements (3.2) (40.0) (6.2)
Repatriation of foreign earnings (16.5) −−
Other (7.3) (6.0) (7.8)
$287.9 $233.7 $310.9