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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 5—Restructuring Charges (Continued)
of approximately $500,000 was identified in the severance accrual due to higher than expected severance costs related to the closure of the
Company’s Singapore manufacturing operations. These adjustments had no net effect on reported operating expense. These actions resulted in
the termination of 353 employees.
The following table summarizes activity associated with restructuring actions initiated during 2003 (in millions):
Note 6—Income Taxes
The provision for income taxes consisted of the following (in millions):
The foreign provision for income taxes is based on foreign pretax earnings of approximately $922 million, $384 million, and $250 million in
2005, 2004, and 2003, respectively. As of September 24, 2005, approximately $4.3 billion of the Company’s cash, cash equivalents, and short-
term investments were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings. Amounts held by foreign
subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S. The Company’s consolidated 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 U.S. U.S. income taxes have not been provided on a
cumulative total of $1.2 billion of such earnings. It is not practicable to determine the income tax liability that might be incurred if these
earnings were to be distributed.
80
Employee
Deferred
Severance
Compensation
Asset
Lease
Benefits
Write
-
off
Impairments
Cancellations
Totals
Total charge
$
7.4
$
5.0
$
7.1
$
7.3
$
26.8
Total spending through
September 24, 2005
(7.9
)
—
—
(
5.1
)
(13.0
)
Total non
-
cash items
—
(
5.0
)
(7.1
)
—
(
12.1
)
Adjustments
0.5
—
—
(
0.5
)
—
Accrual at September 24, 2005
$
—
$
—
$
—
$
1.7
$
1.7
2005
2004
2003
Federal:
Current
$
303
$
34
$
18
Deferred
146
56
(7
)
449
90
11
State:
Current
66
5
4
Deferred
(91
)
(18
)
(11
)
(25
)
(13
)
(7
)
Foreign:
Current
59
46
21
Deferred
(3
)
(16
)
(1
)
56
30
20
Provision for income taxes
$
480
$
107
$
24