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76 FORD MOTOR COMPANY
NOTES TO FINANCIAL STATEMENTS
NOTE 2. INCOME TAXES
Components of income taxes, excluding equity in net results of affiliated companies accounted for after-tax, are as follows:
2003 2002 2001
Income/(loss) before income taxes (in millions)
U.S. $ (209) $ 1,112 $ (5,785)
Non-U.S. 1,496 (79) (786)
Total $ 1,287 $ 1,033 $ (6,571)
Provision for income taxes (in millions)
Current:
Federal $ (149) $ (423) $ 22
Non-U.S. 653 547 104
State and local 32 --
Total Current 536 124 126
Deferred:
Federal (209) 224 (2,072)
Non-U.S. (129) (120) (248)
State and local (63) 73 98
Total Deferred (401) 177 (2,222)
Total $ 135 $ 301 $ (2,096)
Reconciliation of effective tax rate
U.S. statutory rate 35% 35% 35%
Non-U.S. income taxes (2) (3) (2)
State and local income taxes (2) 5(1)
Deductible dividends (4) (8) 2
General business credits (12) (20) 2
Dispositions and restructurings -20 -
Other (5) - (4)
Effective rate 10% 29% 32%
Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year
tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued.
No provision for deferred taxes has been made on $860 million of unremitted earnings (primarily prior to 1998) that are consid-
ered to be indefinitely invested in non-U.S. subsidiaries. Deferred taxes for these unremitted earnings are not practicable to esti-
mate.
The components of deferred tax assets and liabilities at December 31 were as follows (in millions):
2003 2002
Deferred taxes at December 31
Deferred tax assets
Employee benefit plans $ 6,721 $ 8,219
Dealer and customer allowances and claims 3,177 3,132
Tax credit carryforwards 2,370 2,085
Other foreign deferred tax assets 2,012 2,135
Allowance for credit losses 1,930 1,886
All other 5,196 4,135
Total deferred tax assets 21,406 21,592
Deferred tax liabilities
Leasing transactions 7,956 8,418
Depreciation and amortization
(excluding leasing transactions) 6,511 5,860
Finance receivables 2,953 2,837
All other 5,036 3,810
Total deferred tax liabilities 22,456 20,925
Net deferred tax assets/(liabilities) $ (1,050) $ 667
FIN73_104 3/22/04 5:10 PM Page 76