This preview shows page 1. Sign up to view the full content.
Unformatted text preview: fed eral benefit
Dom estic p rod u ction activity d ed u ction
Other, includ ing tax reserves and related interest 2008 36.1% 37.2% The American Jobs Creation Act of 2004 m ad e a nu m ber of changes to the incom e tax law s inclu ding the creation of
a d ed u ction for qu alifying d om estic p rod u ction activities. The d ed u ction equ als three p ercent of qualifying net incom e
for fiscal 2007, six percent for fiscal 2008 throu gh 2010, and nine percent for fiscal 2011 and thereafter. Ou r tax
p rovisions for fiscal years 2009, 2008, and 2007 reflect benefits of $100 m illion, $97 m illion and $41 m illion, resp ectively,
resulting from this d ed u ction.
The Comp any ad op ted new accounting guid ance for incom e taxes at the beginning of fiscal year 2008. See Note 2
for the im p act of ad opting this gu idance.
A reconciliation of the beginning and end ing am ount of gross u nrecognized tax benefits, exclud ing the related
accru al for interest, is as follow s:
Balance at the beginning of the year
Increases for cu rrent year tax
Increases for prior year tax p ositions
Decreases in p rior year tax positions
Settlem ents w ith taxing authorities $ Balance at the end of the year $ $ 655 630
$ 686 655 The year end 2009 and 2008 balances includ e $367 m illion and $353 m illion, resp ectively, that if recognized ,
w ou ld redu ce ou r incom e tax exp ense and effective tax rate after giving effect to offsetting...
View Full Document
This homework help was uploaded on 03/27/2014 for the course ACCOUNTING 151 taught by Professor Chinn during the Spring '12 term at Lehigh University .
- Spring '12