|
Thousands of dollars, except per-share amounts and numbers of shares
The provision for income taxes is composed of the following charges (benefits):
| |
|
2004 |
|
|
2003 |
|
|
2002 |
|
 |
Current:
Domestic: |
|
|
|
|
|
|
|
|
|
| Federal |
$ |
91,669 |
|
$ |
103,825 |
|
$ |
34,459 |
|
| State and local, including |
|
|
|
|
|
|
|
|
|
| Puerto Rico |
|
3,362 |
|
|
3,880 |
|
|
7,900 |
|
| Foreign |
|
106,678 |
|
|
53,402 |
|
|
47,384 |
|
|
| |
|
201,709 |
|
|
161,107 |
|
|
89,743 |
|
|
| Deferred: |
|
|
|
|
|
|
|
|
|
| Domestic |
|
(4,308 |
) |
|
6,209 |
|
|
58,821 |
|
| Foreign |
|
(27,037 |
) |
|
(288 |
) |
|
(449 |
) |
|
| |
|
(31,345 |
) |
|
5,921 |
|
|
58,372 |
|
|
| |
$ |
170,364 |
|
$ |
167,028 |
|
$ |
148,115 |
|
|
In accordance with SFAS No. 109, “Accounting for Income Taxes,” deferred tax assets and liabilities are netted on the balance sheet by separate tax jurisdictions. At September 30, 2004 and 2003, net current deferred tax assets of $100,605 and $77,264, respectively, were included in Prepaid expenses, deferred taxes and other. There were no net non-current deferred tax assets in 2004 and 2003. Net current deferred tax liabilities of $1,346 and $3,385, respectively, were included in Current Liabilities–Income taxes. Net non-current deferred tax liabilities of $61,819 and $67,784, respectively, were included in Deferred Income Taxes and Other. Deferred taxes are not provided on substantially all undistributed earnings of foreign subsidiaries. At September 30, 2004, the cumulative amount of such undistributed earnings indefinitely reinvested outside the United States was $2,080,515. Determining the tax liability that would arise if these earnings were remitted is not practicable.
Deferred income taxes at September 30 consisted of:
| |
|
2004 |
|
|
|
2003 |
|
|
|
| |
|
Assets |
|
Liabilities |
|
|
Assets |
|
Liabilities |
|
|
| Compensation and benefits |
$ |
170,148 |
|
$ |
— |
|
$ |
148,253 |
|
$ |
— |
|
| Property and equipment |
|
— |
|
|
141,382 |
|
|
— |
|
|
137,013 |
|
| Purchase acquisition |
|
|
|
|
|
|
|
|
|
|
|
|
| adjustments |
|
— |
|
|
11,205 |
|
|
— |
|
|
22,513 |
|
| Other |
|
133,397 |
|
|
113,518 |
|
|
124,148 |
|
|
104,694 |
|
|
| |
|
303,545 |
|
|
266,105 |
|
|
272,401 |
|
|
264,220 |
|
| Valuation allowance |
|
— |
|
|
— |
|
|
(2,086 |
) |
|
— |
|
|
| |
$ |
303,545 |
|
$ |
266,105 |
|
$ |
270,315 |
|
$ |
264,220 |
|
|
A reconciliation of the federal statutory tax rate to the Company’s effective tax rate follows:
|
| |
|
|
|
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
| Federal statutory tax rate |
|
|
|
|
35.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
| State and local income taxes, |
|
|
|
|
|
|
|
|
|
|
|
|
| net of federal tax benefit |
|
|
|
|
.3 |
|
|
.4 |
|
|
1.2 |
|
| Effect of foreign and Puerto Rican |
|
|
|
|
|
|
|
|
|
|
| income and foreign tax credits |
|
|
|
(9.9 |
) |
|
(8.4 |
) |
|
(9.3 |
) |
| Effect of Research, Empowerment |
|
|
|
|
|
|
|
|
|
|
| Zone, Foreign Sales Corporation/ |
|
|
|
|
|
|
|
|
|
|
| Extraterritorial Income tax benefits |
|
|
(2.5 |
) |
|
(3.0 |
) |
|
(2.2 |
) |
| Other, net |
|
|
|
|
(.3 |
) |
|
(.9 |
) |
|
(1.1 |
) |
|
| |
|
|
|
|
22.6 |
% |
|
23.1 |
% |
|
23.6 |
% |
|
The approximate dollar and diluted per-share amounts of tax reductions related to tax holidays in various countries in which the Company does business were: 2004–$55,461 and $.21; 2003–$42,050 and $.16; and 2002–$40,860 and $.15. The tax holidays expire at various dates through 2018.
The Company made income tax payments, net of refunds, of $146,574 in 2004, $110,739 in 2003 and $52,603 in 2002.
The components of Income From Continuing Operations Before Income Taxes follow:
Supplemental Cash Flow Information
Noncash investing activities for the years ended September 30:
| |
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
| Domestic, including Puerto Rico |
$ |
291,973 |
|
$ |
355,032 |
|
$ |
343,853 |
|
| Foreign |
|
460,895 |
|
|
366,926 |
|
|
283,614 |
|
|
| |
$ |
752,868 |
|
$ |
721,958 |
|
$ |
627,467 |
|
|
|
