Document 2jYoByd72RyOyxnYZ8peD9nzN
I
OPTIONS FOR COMMON SHARES
Options have been granted to certain employees, under various plans, to purchase the Company's Common Shares at prices equal to fair market value as of date of grant. These options expire ten years from date of grant. A summary of stock option activity follows:
1994
1993
Average price
per share
Shares
Average price
per share
Shares
Outstanding, January 1 Granted Exercised Canceled
Outstanding, December 31
S31.53 57.71 28.12 46.42
$37.94
3.433.850 959.390 (348.720) (45.361)
3.999.159
$28.81 39.34 27.28 32.52
$31.53
3.368.670 831.730 (657.353) (109.197)
3.433,850
Shares exercisable January 1 December 31
Shares reserved for future grants January 1 December 31
2,401,683 2.839,095
2,133.630 1.218,477
2.334.758 2.401.683
2,856.882 2,133.630
INCOME TAXES
Income before income taxes for the yean ended December 31 follows (in millions):
United States Outside the United States
1994
$396 92
$488
1993
$214 48
$262
1992
$147 34
$181
Income taxes for the years ended December 31 follows (in millions):
Current United Slates Federal ' State and local Outside the United States
Deferred United States Increase in statutory tax rate Other Federal State and local Outside the United Slates Operating loss carryforwards Reduction of valuation allowance for deferred tax assets Increase in statutory tax rate Other
1994 1993 1992
$ 81 15 44
140
$108 7
30
145
$ 42 5
20
67
(5) 24 (50) (14)
1 (2) (1)
(S) (7) (III
(3) (2) 3
15
$155
(5) (1) 7
(63)
$ 82
(26) S 41
Significant components of current and long-term deferred income taxes at December 31 follow (in millions):
Accruals and other adjustments Employee benefits Inventory Restructuring Depreciation and amortization Other
Operating loss carryforwards Valuation allowance Other items
Current assets
1994
Long-term assets
Long-term liabilities
$ 54 15 20
46
16 $151
$228
13 (142)
7 78 (29)
3 $158
$ (4)
(17) l 9
$<U)
Accruals and other adjustments Employee benefits Inventory Restructuring Depreciation and amortization Other
Operating loss carryforwards Valuation allowance Other items
Current assets
1993
Long-term assets
Long-term liabilities
$ 44 15 15
38
15 $127
$209
13 (140)
5 50 (15) (10) $112
$ (4)
(15) 2 7
$(10)
At December 31,1994, certain subsidiaries outside the United States had tax loss carryforwards and tax credit carryovers (in millions) aggregating $162 and $15, respectively. Carryforwards of $92 million have no expiration dates and the balance expire at various dates from 1995 through 2005. The tax credit carryovers expire at various dates from 1995 through 1999.
Reconciliations of income taxes at the United States Federal statutory rate to the effective income tax rate for the years ended December 31 follow (in millions):
Income taxes at the United
States statutory rate State and local income taxes Adjustment of worldwide tat
liabilities Possessions credit related to
Puerto Rican operations Reduction of valuation allowance
for deferred tax assets Adjustment of deferred income taxes
for change in statutory rates Effective tax rate differential on
earnings of consolidated subsidiaries and associate companies outside the United States Other - net
1994 Amount Rate
1993 Rate
1992 Rate
$171 14
35.0% 35.0% 34.0%
2.8 1.5
.9
7 1.6 1.4 (6.0)
(26) (5.2)
(3) (.6) (2.1) (2) (4) (2.3)
(6) $155
(1.3) 31.9%
.1 (2.1)
31.5%
(3.9) (2.2)
22.8%
29