Document 88JdgN92b2kpRaQvGmnj756y

ncome Taxes Income before income taxes for the years ended December 31 follows (in millions): 1996 1995 1994 United States Non-United States Income taxes for the years ended December 31 follows (in millions): Current United States Federal Slate and local Non-United States 1996 1995 1994 Deterred United States Reduction of valuation allowance for deferred income tax assets Other Federal State and local Non-United States Operating loss carryforwards Reduction of valuation allowance for deferred income tax assets k Other 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): 1996 1995 1994 Amount Rate Rate Rate Income laxes at the United States statutory rate State and local income taxes Adjustment of worldwide tax liabilities Possessions credit related to Puerto Rican operations Reduction of valuation allowance for deferred income tax assets Foreign source income Other-- net Significant components of current and long-term deferred income taxes at December 31 follow (in millions): 1996 Accruals and other adjustments Employee benefits Depreciation and amortization Other Operating loss carryforwards of non-United States subsidiaries Other items Valuation allowance Cummt assets Long- loog- trm term assets liabilities 1995 Accruals and other adjustments Employee benefits Depreciation and amortization Other Operating loss carryforwards of non-United Stales subsidiaries Other items Valuation allowance At December 31,1996, certain non-United States subsidiaries had operating loss carryforwards aggregating $198 million. Carryforwards of $163 million have no expiration dates and the balance expire at various dates from 1997 through 2005. The Company has manufacturing facilities in Puerto Rico which operate under tax relief and other incentives that will no longer be available after 2005. No provision has been made for income taxes on undistributed earn ings of consolidated non-United States subsidiaries of $459 million at December 31,1996, since the earnings retained have been reinvested by the subsidiaries. If distributed, such remitted earnings would be subject to withholding taxes but substantially free of United States income taxes. Worldwide income tax payments in 1996,1995 and 1994 (in millions) were $154, $166 and $109, respectively. Other Information Accounts Receivable Accounts receivable are net of an allowance for doubtful accounts of $15 million at the end of 1996 and 1995. Inventories The components of inventories at December 31 follow (in millions): 1996 199S Raw materials Worfc in process Finished goods Gross inventories ai FIFO Excess Of current cost over LIFO cost Net inventones e;.. -.us* 4 Gross inventories accounted for using the LIFO method (in millions) were $431 and $328 at the end of 1996 and 1995, respectively.