Apple 2011 Annual Report Download - page 64

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Note 5 – Income Taxes
The provision for income taxes for the three years ended September 24, 2011, consisted of the following (in millions):
The foreign provision for income taxes is based on foreign pretax earnings of $24.0 billion, $13.0 billion and $6.6 billion in 2011, 2010 and
2009, respectively. The Company’
s consolidated financial statements 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. As of September 24, 2011, U.S. income taxes have not been provided on a cumulative total of $23.4 billion of such earnings.
The amount of unrecognized deferred tax liability related to these temporary differences is estimated to be approximately $8.0 billion.
As of September 24, 2011 and September 25, 2010, $54.3 billion and $30.8 billion, respectively, of the Company’
s cash, cash equivalents and
marketable securities 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.
Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the
consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted
tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
62
2011
2010
2009
Federal:
Current
$
3,884
$
2,150
$
1,922
Deferred
2,998
1,676
1,077
6,882
3,826
2,999
State:
Current
762
655
524
Deferred
37
(115
)
(2
)
799
540
522
Foreign:
Current
769
282
345
Deferred
(167
)
(121
)
(35
)
602
161
310
Provision for income taxes
$
8,283
$
4,527
$
3,831