what is the interpretation of the line item " net impact of repatriated international earning"? Why is it a positive reconciling item in some years but negative in other years?
what is the interpretation of the line item " net impact of repatriated international earning"? Why is it a positive reconciling item in some years but negative in other years?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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what is the interpretation of the line item " net impact of repatriated international earning"? Why is it a positive reconciling item in some years but negative in other years?
Transcribed Image Text:**Table of Contents**
**Note 9. Taxes**
**Income from Continuing Operations**
The components of income from continuing operations before income taxes are as follows:
| (Amounts in millions) | Fiscal Years Ended January 31, |
|-----------------------|-------------------------------------|
| | 2016 | 2015 | 2014 |
| U.S. | $ 16,685 | $ 18,510 | $ 19,412 |
| Non-U.S. | $ 4,953 | $ 6,189 | $ 5,244 |
| **Total Income from continuing operations before income taxes** | $ 21,638 | $ 24,699 | $ 24,656 |
A summary of the provision for income taxes is as follows:
| (Amounts in millions) | Fiscal Years Ended January 31, |
|-----------------------|---------------------------------------|
| | 2016 | 2015 | 2014 |
| **Current:** | | | |
| U.S. federal | $ 5,562 | $ 6,105 | $ 6,377 |
| U.S. state and local | $ 622 | $ 658 | $ 729 |
| International | $ 1,400 | $ 1,399 | $ 1,523 |
| **Total current tax provision** | $ 7,584 | $ 8,162 | $ 8,629 |
| **Deferred:** | | | |
| U.S. federal | $(70) | $(37) | $(75) |
| U.S. state and local | $(10) | $(8) | $(17) |
| International | $ (846) | $ (132) | $ (432) |
| **Total deferred tax expense (benefit)** | $ (926) | $ (177) | $ (524) |
| **Total provision for income taxes** | $ 6,658 | $ 7,985 | $ 8,105 |
**Effective Income Tax Rate Reconciliation**
The Company's effective income tax rate is typically lower than the U.S. statutory tax rate primarily because of benefits from lower-taxed global operations, including the use of global funding structures and
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