Computer Associates 2005 Annual Report Download - page 135

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are met. In addition, on December 21, 2004, the FASB issued FASB Staff Position (FSP) No. FAS 109-2, “Accounting and Disclosure
Guidance for the Foreign Earnings Repatriation Provision within American Jobs Creation Act of 2004.” FSP FAS 109-2 provides
accounting and disclosure guidance for the repatriation provision. The Company expects to complete its assessment on its plans for
reinvestment and the associated effect of the deduction during the first half of fiscal year 2006. During fiscal year 2005, however, the
Company has recorded an estimate of this tax charge of $55 million based on an estimated repatriation amount of $500 million. No
provision has been made for federal income taxes on the remaining balance of the unremitted earnings of the Company’ s foreign
subsidiaries since the Company plans to permanently reinvest all such earnings outside the U.S. Unremitted earnings totaled
approximately $30 million (net of the $500 million estimated repatriation) at March 31, 2005. The Company received a benefit of
approximately $35 million in the quarter ending June 30, 2005 reflecting the Department of Treasury and IRS Notice 2005-38 issued on
May 10, 2005 which will reduce the estimated taxes associated with the repatriation from $55 million to approximately $20 million.
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