Apple 1996 Annual Report Download - page 42

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Income Taxes
The provision (benefit) for income taxes consists of the following: (In millions)
The foreign provision (benefit) for income taxes is based on foreign pretax earnings (loss) of approximately $(141) million, $572 million, and
$474 million in 1996, 1995, and 1994, respectively. A substantial portion of the Company's cash, cash equivalents, and short-term investments
is held by foreign subsidiaries and is generally based in U.S. dollar-denominated holdings. Amounts held by foreign subsidiaries would be
subject to U.S. income taxation on repatriation to the United States. The Company's financial statements fully provide for any related tax
liability on amounts that may be repatriated, aside from undistributed earnings of certain of the Company's foreign subsidiaries that are
intended to be indefinitely reinvested in operations outside the United States. U.S. income taxes have not been provided on a cumulative total
of $395 million of such earnings. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be
distributed. Except for such indefinitely reinvested earnings, the Company provides for federal and state income taxes currently on
undistributed earnings of foreign subsidiaries.
40
1996 1995 1994
Federal:
Current $(125) $ 26 $ 61
Deferred (279) 113 20
(404) 139 81
State:
Current (2) 1 6
Deferred (71) 15 20
(73) 16 26
Foreign:
Current (1) 89 71
Deferred (1) 6 12
(2) 95 83
Provision (benefit) for
income taxes $(479) $ 250 $ 190