Archer Daniels Midland 2009 Annual Report Download - page 70

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64
Archer Daniels Midland Company
Notes to Consolidated Financial Statements (Continued)
Note 12.
Income Taxes (Continued)
Significant components of deferred tax liabilities and assets are as follows. 2008 amounts have been
reclassified to conform to current year presentation.
2009
2008
(In millions)
Deferred tax liabilities
Property, plant, and equipment
$ 599
$ 592
Equity in earnings of affiliates
142
272
Inventory reserves
64
28
Other
80
36
$ 885
$ 928
Deferred tax assets
Pension and postretirement benefits
$ 301
$ 156
Purchased call options
78
98
Stock compensation
59
53
Tax credit carryforwards, net
36
43
Reserves and other accruals
19
9
Other
153
96
$ 646
$ 455
Net deferred tax liabilities
$ 239
$ 473
Current deferred tax liabilities included
in accrued expenses
(9)
–
Non-current deferred tax liabilities
$ 230
$ 473
Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate on earnings is as follows:
2009
2008
2007
Statutory rate
35.0%
35.0%
35.0%
State income taxes, net of
federal tax benefit
1.0
1.3
1.4
Foreign earnings taxed at rates
other than the U.S. statutory rate
(9.2)
(4.6)
(2.9)
WIHL Liquidation
6.6
–
–
Adjustment of income taxes to
filed tax returns
(0.1)
0.2
(0.4)
Other
(0.7)
(0.6)
(1.6)
Effective rate
32.6%
31.3%
31.5%
The Company made income tax payments of $1.0 billion, $859 million and $794 million in 2009, 2008, and 2007,
respectively.