Bausch & Lomb 1999 Annual Report

Reconciliations of the statutory U.S. federal income tax rate to the effective tax rates for continuing operations were as follows:
At December 25, 1999, earnings considered to be permanently
reinvested in non-U.S. subsidiaries totaled approximately
$902.5. Deferred income taxes have not been provided on these
earnings as the company does not plan to initiate any action that
December 25, 1999 December 26, 1998
Assets Liabilities Assets Liabilities
Current:
Sales and allowance accruals $ 23.4 $ .– $ 17.8 $ .–
Employee benefits and compensation 17.2 .– 22.5 .–
Inventories 20.0 5.3 25.1 .–
Restructuring accruals 9.7 .– 4.5 .–
Other accruals 1.3 7.1 11.4 1.0
Unrealized foreign
exchange transactions 1.9 8.0 1.8 2.5
State and local income tax .– 8.1 .– 11.9
$ 73.5 $ 28.5 $ 83.1 $15.4
Non-current:
Tax loss and credit carryforwards $110.8 $ .– $ 48.7 $ .–
Employee benefits 26.4 0.3 30.0 0.3
Other accruals
Unrealized foreign exchange
.– 11.6 .– 8.9
transactions .– 14.0 .– 15.1
Depreciation and amortization .– 25.1 7.6 21.7
Valuation allowance (45.6) .– (39.6) .–
Intercompany investments .– 203.3 .– .–
91.6 254.3 46.7 46.0
$165.1 $282.8 $129.8 $61.4
See the future 35 Bausch & Lomb
1999 1998 1997
Statutory U.S. tax rate 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit 3.3 (1.2) 4.1
Goodwill amortization 0.9 0.1 .–
Foreign Sales Corporation tax benefit (0.9) (1.7) (1.2)
Difference between non-U.S. and U.S. tax rates (2.8) 3.9 (1.4)
Other 0.5 (0.9) 1.6
Effective tax rate 36.0% 35.2% 38.1%
would require the payment of income taxes. It is not practicable
to estimate the amount of additional tax that might be payable on
these undistributed foreign earnings.