E-Z-GO 2005 Annual Report Download - page 86

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Post-
retirement Expected
Benefits Medicare
Pension Other Than Part D
(In millions)
Benefits Pensions Subsidy
2006 $ 281 $ 69 $ (5)
2007 285 72 (6)
2008 291 73 (6)
2009 300 74 (6)
2010 306 74 (6)
2011– 2015 1,631 349 (32)
Note 15. Income Taxes
Textron files a consolidated federal income tax return for all U.S. subsidiaries and separate returns for foreign subsidiaries. Income from continu-
ing operations before income taxes and distributions on preferred securities of subsidiary trusts is as follows:
(In millions)
2005 2004 2003
United States $ 574 $ 333 $ 270
Foreign 165 207 154
Total $ 739 $ 540 $ 424
Income tax expense for continuing operations is summarized as follows:
(In millions)
2005 2004 2003
Federal:
Current $ 128 $ 49 $ 48
Deferred 64 59 10
State 10 11 13
Foreign 21 46 38
Income tax expense $ 223 $ 165 $ 109
The following reconciles the federal statutory income tax rate to the effective income tax rate reflected in the Consolidated Statements of
Operations:
2005 2004 2003
Federal statutory income tax rate 35.0% 35.0% 35.0%
Increase (decrease) in taxes resulting from:
Valuation allowance on contingent receipts 2.1 — —
State income taxes 0.9 1.3 2.0
Special foreign dividend 0.1 2.1 —
Favorable tax settlements — — (3.0)
Employee Stock Ownership Plan dividends (0.9) (1.2) (1.8)
Foreign tax rate differential (5.0) (4.8) (3.4)
Export sales benefit (1.1) (1.0) (1.3)
Other, net (0.9) (0.8) (1.8)
Effective income tax rate 30.2% 30.6% 25.7%
66
Textron Inc.