Sears 2009 Annual Report Download - page 85

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
NOTE 11—INCOME TAXES
millions 2009 2008 2007
Income (loss) before income taxes
U.S. .................................................................. $ (38) $ (407) $ 953
Foreign ............................................................... 458 591 499
Total ............................................................. $420 $ 184 $1,452
Income tax expense (benefit)
Current:
Federal ........................................................... $(179) $ (70) $ 76
State and local ...................................................... 18 32 43
Foreign ........................................................... 141 199 98
Total ................................................................. (20) 161 217
Deferred:
Federal ........................................................... 124 (60) 253
State and local ...................................................... 21 (11) 2
Foreign ........................................................... (2) (5) 78
143 (76) 333
Total ................................................................. $123 $ 85 $ 550
2009 2008 2007
Effective tax rate reconciliation
Federal income tax rate .................................................. 35.0% 35.0% 35.0%
State and local taxes net of federal tax benefit ................................. 6.0 7.2 2.0
Tax credits ............................................................ (3.0) (6.3) (0.4)
Resolution of income tax matters ........................................... (6.2) (6.8) 0.5
Basis difference in domestic subsidiary ...................................... — (30.2) 0.3
Canadian rate differential on noncontrolling interest ............................ (0.9) (2.3) —
Nondeductible goodwill .................................................. — 50.0 —
Other ................................................................. (1.6) (0.4) 0.5
29.3% 46.2% 37.9%
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