Waste Management 2008 Annual Report Download - page 117
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Please find page 117 of the 2008 Waste Management annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.8. Income Taxes
Provision for income taxes
Our provision for income taxes consisted of the following (in millions):
2008 2007 2006
Years Ended December 31,
Current:
Federal ................................................ $436 $412 $283
State .................................................. 52 33 55
Foreign ................................................ 31 25 10
519 470 348
Deferred:
Federal ................................................ 126 91 (14)
State .................................................. 27 (3) (14)
Foreign ................................................ (3) (18) 5
150 70 (23)
Provision for income taxes .................................... $669 $540 $325
The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:
2008 2007 2006
Years Ended December 31,
Income tax expense at U.S. federal statutory rate .................... 35.00% 35.00% 35.00%
State and local income taxes, net of federal income tax benefit ......... 3.71 2.69 2.81
Non-conventional fuel tax credits ............................... — (2.61) (4.57)
Taxing authority audit settlements and other tax adjustments ........... (1.00) (1.22) (9.34)
Nondeductible costs relating to acquired intangibles ................. 0.81 1.11 1.20
Tax rate differential on foreign income ........................... (0.03) 0.04 —
Cumulative effect of change in tax rates .......................... — (1.81) (1.96)
Other . . .................................................. (0.39) (1.47) (1.09)
Provision for income taxes .................................. 38.10% 31.73% 22.05%
The comparability of our reported income taxes for the reported periods has been significantly affected by
increases in our income before income taxes, tax audit settlements and non-conventional fuel tax credits, which are
discussed in more detail below. For financial reporting purposes, income before income taxes showing domestic and
foreign sources was as follows (in millions) for the years ended December 31, 2008, 2007 and 2006:
2008 2007 2006
Years Ended December 31,
Domestic .............................................. $1,652 $1,605 $1,390
Foreign ................................................ 104 98 84
Income before income taxes ................................ $1,756 $1,703 $1,474
83
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)