GSK Annual Report 2002

37 Reconciliation to US accounting principles continued
Earnings per share under US GAAP
Notes to the financial statements GlaxoSmithKline 133
2002 2001 2000
Weighted average number of shares in issue millions millions millions
Basic 5,912 6,064 3,591
Adjustments:
Share options 22 52 35
Diluted 5,934 6,116 3,626
Shares held by the Employee Share Ownership Trusts are excluded from shares in issue.
Taxation
2001 2000
Total tax expense
2002
£m
(restated)
£m
(restated)
£m
UK GAAP:
Current tax expense 1,432 1,386 808
Deferred tax expense 29 (53) (17)
Total tax expense 1,461 1,333 791
US GAAP:
Current tax expense 1,445 1,442 817
Deferred tax expense (1,737) (936) (9)
Total tax expense (292) 506 808
Deferred taxation under US GAAP
Classification of GlaxoSmithKline’s deferred taxation liabilities and assets under US GAAP is as follows:
2002 2001
£m £m
Liabilities
Stock valuation adjustment (113) (113)
Current deferred taxation liabilities (113) (113)
Accelerated capital allowances (710) (691)
Product rights (5,620) (6,126)
Other timing differences (156) (1,030)
Total deferred taxation liabilities (6,599) (7,960)
Assets
Intra-Group profit 487 375
Other timing differences 646 842
Current deferred taxation assets 1,133 1,217
Asset disposal (125) (161)
Pensions and other post-retirement benefits 111 221
Tax losses 93 97
Manufacturing restructuring 52 71
Legal and other disputes 124 25
Other timing differences 63 42
Total deferred taxation assets 1,451 1,512
Net deferred taxation under US GAAP (5,148) (6,448)
The difference between the UK effective taxation rate and the US effective taxation rate is primarily related to the fair value adjustments for
goodwill and intangibles related to the acquisitions of Wellcome and SmithKline Beecham.