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In April 1998, the American Institute of Certified Public Accountants issued Statement of Position 98-5 “Reporting on the Costs of Start-Up Activities.” This Statement requires costs of start-up activities and organization costs to be expensed as incurred. We adopted Statement of Position 98-5 effective January 1, 1999 and recorded expense of $30 million pretax or $19 million after-tax or $0.04 per diluted share. The components of the $30 million pretax cost, all contained within the Energy Services Group, that were previously deferred include:
- $23 million for mobilization costs associated with specific contracts and for installation of offshore cementing equipment onto third party marine drilling rigs or vessels; and
- $7 million for costs incurred opening a new manufacturing facility in the United Kingdom.
The components of the (provision) benefit for income taxes are:
Included in the current (provision) benefit for income taxes are foreign tax credits of $106 million in 2001, $113 million in 2000 and $52 million in 1999. The United States and foreign components of income before income taxes, minority interests, discontinued operations, and change in accounting method are as follows:
The primary components of our deferred tax assets and liabilities and the related valuation allowances, including federal deferred tax assets of discontinued operations are as follows:
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