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? **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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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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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?

**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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