A First Look at 2004 Schedule M-3Reporting by Large CorporationsBy Charles Boynton, Portia DeFilippes, and
Ellen Legel
Charles Boynton is a program manager and seniorprogram analyst with the IRS Large and MidsizeBusiness Division’s Office of Strategy, Research, andProgram Planning. From September 2000 throughMay 2006, he was a Surrey Senior Research Fellow inTreasury’s Office of Tax Analysis (OTA). He has beena member of the joint Treasury-IRS Schedule M-3team since its formation in June 2003.
Portia DeFilippes is a financial economist in theEconomic Modeling and Computer Application Di-vision of OTA. Since September 2000, she and Boyn-ton have explored comparisons of corporate financialstatement and tax return data, book-tax differences,and tax return consolidation anomalies as part oftheir research for OTA.
Ellen Legel is a senior staff economist and man-agement official with the Corporation Tax Branch ofthe IRS’s Statistics of Income (SOI) Division. She hasbeen a lead analyst for the corporation tax program,and is the senior analyst for Schedule M-1, ScheduleM-2, and Schedule M-3.
For most publicly traded and many privately heldcorporations with assets of $10 million or more, thenew Schedule M-3 book-tax reconciliation replacedthe four-decade old Schedule M-1 effective Decem-ber 2004. The authors examine Form 1120 corporatetax return data for December 2004 through June 2005from the 2004 SOI advance corporate file and iden-tify 35,386 tax returns potentially subject to ScheduleM-3. Data for 100 large returns were not yet avail-able. The authors find 30,430 returns (86 percent)with a Schedule M-3 that passes some reconciliationtests. Those 30,430 tax returns represent approxi-mately 89 percent of the aggregate tax after creditsfor the tax returns potentially subject to the 2004Schedule M-3. The unavailable 100 returns representapproximately 6 percent of the aggregate tax aftercredits. The 4,856 returns with either reconciliationproblems (2,438 or approximately 7 percent) or noSchedule M-3 data (2,418 or approximately 7 per-cent) represent in total approximately 5 percent ofthe aggregate tax after credits for the 35,386 taxreturns. Further, the authors discuss the need to
convert Schedule M-3 data to pretax differences bybacking out the effects of federal tax expense. Anadjustment to a common pretax base for both bookand tax is consistent with the literature since Talis-man (2000). For the 30,430 returns, total worldwideincome is $568,010 million; book income for the taxgroup is $515,421 million. Pretax book is $707,092million, and M-3 tax income is $575,375 million,resulting in a pretax total difference of ($131,718)million of which ($81,587) million is temporary (62percent) and ($50,131) million is permanent (38 per-cent).
The authors thank the SOI Division for makingdata from the 2004 SOI advance corporate file avail-able to us for this research. They thank the followingat the SOI Division for assistance: Thomas Petska,Douglas Shearer, Janet McCubbin, Martha Harris,and, particularly, Ken Szeflinski. They thank MikeMandeville, Kathleen Walker, and Melissa Schottlerfor assistance with the advance data file. The authorsalso thank Karen Gill, IRS Publishing Division, andBarbara Bradley, IRS Tax Forms and PublicationsDivision, for providing Exhibit I, ‘‘2004 Form 1120Schedule M-3.’’ They thank the participants in theMay 12, 2006, OTA Brownbag Seminar, and theparticipants in the June 14, 2006, IRS Research Con-ference. They thank the following for comments atdifferent stages of the development of this report:Robert Adams, Geraldine Gerardi, Don Kiefer, JohnMcClelland, Mike McDonald, Judith McNamara,John Miller, Lillian Mills, Susan Nelson, GeorgePlesko, David Stanley, William Trautman, Bill Wil-son, and Gregory Zielinski. Last but not least, theauthors thank Jonathan Mable for his PowerPointpresentation, and Mable and Erin Sullivan for pastand current project assistance. All errors are theauthors’.
The opinions expressed are those of the authorsand do not necessarily represent positions of Trea-sury or the IRS.
This report was prepared for the 2006 IRS Re-search Conference. It was presented by Legel on June14, 2006.
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Table of Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . 9442. Dissatisfaction With Schedule M-1 . . . . . . 9443. Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . 9444. Source of 2004 Tax Return Data . . . . . . . . . 9455. Intercompany Dividends (ICD) . . . . . . . . . 9466. Overview of Tables 1-11 . . . . . . . . . . . . . . 9467. Pretax Benchmark and Sign Conventions . 9468. Data Presented in Tables 1-6 . . . . . . . . . . . 9479. Data Availability for the 2004 Schedule
M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94710. Reporting of Columns A and D in 2004 . . . 94811. Financial Statement Type . . . . . . . . . . . . . 94812. Financial Statement Restatements . . . . . . . 94813. Book-Tax Difference by Industry . . . . . . . 94914. Aggregate 2004 Schedule M-3: All . . . . . . 94915. Aggregate 2004 Schedule M-3: SEC 10-K . . 95016. Aggregate 2004 Schedule M-3: Audited . . 95117. Aggregate 2004 Schedule M-3: A & D
Reconcile . . . . . . . . . . . . . . . . . . . . . . . . . 95118. Aggregate 2004 Schedule M-3: A & D
Blank . . . . . . . . . . . . . . . . . . . . . . . . . . . 95119. Review of Supporting Documentation . . . 95120. Summary and Conclusion . . . . . . . . . . . . . 952References . . . . . . . . . . . . . . . . . . . . . . . . . . . . 953
1. Introduction
For most publicly traded and many privately heldcorporations with assets of $10 million or more, the newSchedule M-3 book-tax reconciliation replaced the four-decade old Schedule M-1 effective December 2004. Firstwe review events leading to the replacement of ScheduleM-1 with Schedule M-3. We then present 2004 ScheduleM-3 data and other tax data for corporations filing the2004 Form 1120, ‘‘U.S. Corporate Income Tax Return,’’ forthe period of December 2004 through June 2005 andreporting total assets of $10 million or more on the Form1120 Schedule L balance sheet.1
2. Dissatisfaction With Schedule M-1A 1999 Treasury report and testimony given in 2000 by
then-Treasury Assistant Secretary for Tax Policy JonathanTalisman noted the growing book-tax gap from 1991 to1997 between pretax book income on Schedule M-1 andtaxable income before net operating loss deduction andspecial deductions (tax net income) on page 1 of Form1120. Both the report and the testimony viewed the 1990sbook-tax gap as a possible indicator of corporate taxshelter activity, but it also noted the difficulty in inter-preting Schedule M-1 book-tax difference data.2 Mills-Plesko (2003) proposed a redesign of Schedule M-1 toincrease the transparency of the corporate tax returnbook-tax reconciliation and to improve data interpretabil-ity.3 The Mills-Plesko (2003) Schedule M-1 recommenda-tions are largely reflected in Schedule M-3, particularly inPart I.4
3. Schedule M-3Exhibit I presents the 2004 Form 1120. Part I reconciles
worldwide consolidated financial statement income withincome per income statement of includable corporations(members of the tax return consolidation group listed onForm 851). Parts II and III, reconcile income per incomestatement of includable corporations (book) with tax netincome on Form 1120, page 1, line 28. Differences be-tween book and tax are characterized as temporary orpermanent.
The goal of the Schedule M-3 is greater transparencyand uniform organization in book-tax data at the time ofreturn filing so that the data may be used to determinewhat returns will and will not be audited and to deter-mine what issues will and will not be examined on thereturns selected for audit.
1This report repeats some material from Boynton, DeFil-ippes, and Legel (2005 and 2006) and from Boynton and Wilson(2006), used with permission. Our tax return table values maynot add up and may differ from official 2004 SOI Publication 16values (when published in 2007) because of rounding andbecause we used data from the 2004 SOI advance corporate filemade available to us seven months before the issuance of the2004 SOI final corporate file. See the discussion of the advancefile and final file in Section 4: Source of 2004 Tax Return Data.The SOI corporate data file for year t includes all tax yearsending between July of calendar year t and June of calendaryear t+1. Effective for all tax years ending on or after Dec. 31,2004, Schedule M-3 replaced Schedule M-1 for corporationsfiling Form 1120 and reporting total assets of $10 million ormore on Form 1120 Schedule L. Effective December 2006, forcorporations with total assets of $10 million or more, ScheduleM-3 will apply to Form 1120-S for S corporations, to Form1120-C for cooperative associations, and to Form 1120-L and
Form-PC for life and property and casualty insurance compa-nies. Effective December 2006, Schedule M-3 will also apply toForm 1065 for partnerships with total assets of $10 million ormore and certain other partnerships. Schedule M-1 continues toapply to Form 1120-F for foreign corporations with effectivelyconnected U.S. income, to Form 1120-RIC for regulated invest-ment companies, to Form 1120-REIT for real estate investmenttrusts, and to all corporations with total assets of less than $10million.
2See Department of the Treasury (1999) and Talisman (2000).See also Mills (1998) cited by Treasury (1999), p. 32, n. 118: ‘‘Millsfinds evidence that the IRS is more likely to assert deficiencieson firms with large book-tax disparities, indicating that suchdisparities are correlated with aggressive tax planning.’’
3See Mills and Plesko (2003) for the proposed redesign ofSchedule M-1. For discussions of the problems in interpretingSchedule M-1 book-tax reconciliation data and problems withthe related Schedule L book balance sheet data, see Boynton,Dobbins, DeFilippes, and Cooper (2002), Mills, Newberry, andTrautman (2002), Boynton, DeFilippes, Lisowsky, and Mills(2004), Boynton, DeFilippes, and Legel (2005 and 2006), andBoynton and Wilson (forthcoming 2006). For discussions of theproblems in reconciling financial accounting income and taxincome, see McGill and Outslay (2002), Hanlon (2003), McGilland Outslay (2004), Plesko (2004), and Hanlon and Shevlin(2005).
4For a discussion of the development of Schedule M-3, seeBoynton and Mills (2004).
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Part I of Schedule M-3 is important. It defines thestarting point for the book-tax reconciliation for the firsttime in corporate tax history. On Schedule M-1, we knowwhere the reconciliation ends (tax net income), but notwhere it begins (book). Schedule M-3, Part I, line 11 iswhat Schedule M-1 line 1 should have been. Part I ofSchedule M-3 is one of the revisions proposed by Mills-Plesko (2003).
Parts II and III reconcile financial net income ofincludable corporations to taxable income reported onForm 1120, page 1, line 28. Part II generally reconcilesitems of income, gain, and loss. Part III deals withexpense and deduction items.
Parts II and III contain four columns to identify anddifferentiate the book and tax aspects of each line item.Column (a) represents financial statement income orexpense amounts maintained in the corporation’s booksand records, using the income statement source deter-mined in Part I. Column (d) represents amounts asreflected in the tax return. For each line item, the differ-ence between the amount shown in column (a) and theamount shown in column (d) is shown either as atemporary difference in column (b) or as a permanentdifference in column (c). The clear statement of both thebook and tax amounts, as well as the reconciling differ-ences, aids the IRS in setting materiality thresholds forthe reconciling differences shown.
The reporting of column (a) book income amounts andcolumn (d) tax income amounts is optional for the firstyear a corporation is required to file Schedule M-3. In2004 approximately 38 percent of the corporations withusable Schedule M-3 data (reporting approximately 56percent of the aggregate tax after credits of those corpo-rations) did not complete columns (a) and (d).
The detail required by Parts II and III is particularlyenhanced by the differentiation of temporary and perma-nent differences. Temporary (timing) differences occurbecause tax laws require the recognition of some items ofincome and expense in different periods than are re-quired for book purposes. Temporary differences origi-nate in one period and reverse or terminate in one ormore subsequent periods. Temporary differences be-tween book and tax are questions of when, not if. Thereare four basic categories of temporary differences:
1. income recognized in financial statements beforeit is taxable;
2. income reported as taxable before it is recognizedin financial statements;
3. expenses recognized in financial statements be-fore they are deducted on the tax return; and
4. expenses deductible on the tax return before theyare recognized on financial statements.
By their very nature, those items involve issues re-garding the correct year for the item’s inclusion in incomeor deduction as an expense. From a tax administrationstandpoint, they concern the time value of money. Overthe lifetime of an entity, cycle of a specific transaction, ordepreciable life of an asset, temporary differences be-tween book and tax net to zero. Purely temporary differ-ences are generally low risk for tax administration — and
important in terms of the magnitude of the difference andthe time before the temporary difference turns — becauseof the time value of money.
In contrast to temporary differences, permanent dif-ferences are adjustments that arise as a result of funda-mental permanent differences in financial and tax ac-counting rules. Those differences result from transactionsthat will not reverse in subsequent periods. In financialstatement reporting under generally accepted accountingprinciples, permanent differences are not considered inthe FAS No. 109 computation of deferred tax assets andliabilities, but do have a direct impact on the effective taxrate. Therefore, permanent differences have the potentialto substantially influence reported earnings per sharecomputations, and, in the case of public companies, stockprices. Accordingly, permanent differences of a compa-rable size generally have a greater audit risk than tem-porary differences.
Schedule M-3’s introduction of detailed reporting re-quirements for permanent and timing differences is an-other significant improvement over Schedule M-1, aswell as being an important enhancement to overalltransparency. When examining Schedule M-1, the char-acter of a particular book-tax difference usually was notdeterminable without further investigation. That oftenrequired contacting the taxpayer, resulting in some de-gree of burden to both taxpayers and the IRS. Further, thereporting of the book and tax amounts allows the IRS toconsider the relative magnitude of the differences beforecontacting the taxpayer.
4. Source of 2004 Tax Return Data
A statistical sample of tax return data is electronicallyencoded annually by the SOI Division for use by the OTAand the Joint Committee on Taxation. Those data includeSchedule M-1 data and, beginning with 2004, ScheduleM-3 data. The annual SOI corporate file is issued to theOTA and the JCT in three versions in the second calendaryear following the July-June tax year (in calendar year2006 for tax year 2004 — that is, for corporate tax yearsending July 2004 to June 2005). The advance file isprepared May 1, the preliminary file is prepared Septem-ber 1, and the final file is prepared December 1. Theadvance file contains a limited number of placeholderrecords and uses tentative weights. The preliminary filehas far fewer placeholders and uses revised weights. Thefinal file has no placeholders and uses final weights.Advance file placeholder records are data from the priortax year for a few complex returns still undergoing SOIediting and for a larger number of late returns not yetreceived as of the issuance of the advance file.5 Prelimi-nary file placeholder records are for late returns not
5Placeholder data are commonly the edited return data fromthe prior tax year, but may also be current-year data from theIRS Business Master File (limited return data tabulated by theIRS when the return is first received and processed) or, forreturns not yet received, current-year survey data collected bythe SOI Division directly from the taxpayer on a voluntary basison a limited number of critical variables.
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received as of the issuance of the preliminary file. Place-holder records are eliminated for the final file. The finalweights compensate for missing returns not received asof the final file. Researchers using SOI data may reportonly aggregate tax data for a minimum of three taxpayersto protect taxpayer confidentiality. For statistical reasons,the SOI Division prefers that reported aggregate data arereported for 10 or more taxpayers whenever possible.
The SOI Division annually summarizes selected taxreturn data from the final corporate file in Publication 16:Corporate Income Tax Returns. Corporate tax data in the2004 final file prepared December 2006 will be summa-rized in the 2004 SOI Publication 16, which will bepublished in 2007. Our tax return table values may notadd up and may differ from official 2004 SOI Publication16 values (when published in 2007) because of roundingand because we used data from the 2004 SOI advancecorporate file made available to us seven months beforethe issuance of the 2005 SOI final corporate file.6
5. Intercompany Dividends (ICD)Form 1120 Schedule M-3, Part II, line 30, column (d)
must equal Form 1120, page 1, line 28 when prepared bythe corporate taxpayer. Some taxpayers improperly in-clude U.S. intercompany dividends (ICD) in tax netincome on Form 1120, page 1, line 28, the reconciliationtarget for Schedule M-3.7 The taxpayer then removes thesame ICD amount as a 100 percent dividends receiveddeduction on line 29b so that it does not increase finalincome subject to tax on line 30. If the taxpayer includesICD on Form 1120, page 1, line 28, it must also include iton Schedule M-3, Part II, line 30 column (d).
In general, ICD should be eliminated in determiningtax net income. The SOI Division removes all ICDamounts that it identifies in tax net income in the SOIcorporate file.8 If the taxpayer includes ICD in tax net
income on Schedule M-3, Part II, line 30, column (d) andon Form 1120, page 1, line 28, the tax net income reportedon Schedule M-3, line 30, column (d) will be larger thantax net income on Form 1120, page 1, line 28 in the SOIcorporate file by the amount of the ICD removed by theSOI from line 28.9
We estimate the ICD adjustment as the (unedited)Schedule M-3, Part II, line 30, column (d) amount minusthe (edited) Form 1120, page 1, line 28 (if it is a positivedifference) for corporations filing a consolidated return.
6. Overview of Tables 1-11
We present our analysis of the 2004 Schedule M-3 datafrom the SOI advance corporate file in two types oftables. Tables 1 through 6 are distributional tables. Eachfocuses on a population characteristic and the distribu-tional impact of that population characteristic on aggre-gate amounts for selected Form 1120 tax return variablesand Schedule M-3 variables. Each of the six tables pre-sents an overall analysis of the population characteristicat the top of the table and then shows the effect of assetsize (four or six asset classes: over $25 billion, $2.5 billionto $25 billion, $250 million to $2.5 billion, $50 million to$250 million, $25 million to $50 million, and $10 millionto $25 million). In Table 1, the three smaller asset classesare combined into a single $10 million to $250 millionclass because of the small number of placeholder returns(seven) in that combined class.10
Tables 7 through 11 are each an aggregate ScheduleM-3: Table 7 for the total reconciled population; Tables 8and 9, for two financial statement type populationsidentified in Table 4; and Tables 10 and 11 for twopopulations based on the reporting or nonreporting ofcolumns A and D data identified in Table 3.
7. Pretax Benchmark and Sign Conventions
We calculate all book-tax difference as pretax differ-ences — that is, as the difference between the pretax book(measured before federal income tax expense) and the taxamounts (also pretax) reported on Schedule M-3. We dothis so that we are always comparing pretax amountsconsistent with the book-tax literature since Talisman(2000). To do this for total book-tax differences reportedon Part II, line 30 or Part III, line 36, we must back outfederal income tax expense from the columns (b) and (c)reconciliation differences reported by taxpayers on PartII, line 30 and Part III, line 36.
6SOI Publication 16 tables have not presented Schedule M-1data to date. It is not currently planned for SOI Publication 16 toinclude Schedule M-3 data. Before the publication of Boynton,DeFilippes, and Legel (2005 and 2006), only Plesko (2002) (for1996-1998) and Plesko-Shumofsky (2005) (for 1995-2001) pre-sented Schedule M-1 data for the SOI Publication 16 population.
7It is improper to include ICD in tax net income if aconsolidated tax group does not contain an insurance companysubsidiary. Schedule M-3 instructions recognize that consoli-dated tax groups containing insurance company subsidiariesmay be required for book accounting (under statutory account-ing rules for insurance companies), and tax accounting (underfederal income tax consolidation rules for insurance companies)to include certain intercompany dividends in book income andin tax income. See the 2004, 2005, and 2006 Form 1120 instruc-tions for Schedule M-3 Part I, lines 10 and 11 and Part II, lines 7and 26. In April 2006, Form 8916 was announced to supplementSchedule M-3 for some mixed groups including, in particular,tax consolidation groups with a Form 1120 parent and aninsurance subsidiary. Form 8916 is used by mixed groups toreconcile tax net income on Schedule M-3 with taxable incomeon the tax return.
8On the SOI corporate file, SOI removes all ICD that itidentifies from Form 1120 data including from page 1, line 28whether or not the tax consolidation group contains an insur-ance company subsidiary. See the discussion of the history of
ICD editing by SOI for 1990-2003 tax years in Boynton, DeFil-ippes, and Legel (2005 and 2006). Note that changes on the SOIcorporate file do not change the amounts on the tax return anddo not affect IRS audits (or lack of audits) for corporate taxreturns.
9SOI also corrects some taxpayer errors it finds on Form 1120page 1. The observed difference between Schedule M-3 Part II,line 30, column (d) and Form 1120, page 1, line 28 on the SOIcorporate file is the net effect of the SOI ICD adjustment and anyother SOI error adjustments made on the SOI corporate file.
10We may not report data for fewer than three taxpayers. Seethe discussion of placeholder returns in sections 4 and 9.
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The prior literature defines the sign of a pretax book-tax difference as positive if the book amount is higher thanthe tax amount. Schedule M-3 effectively reverses thisconvention by the nature of its reconciliation rules. Anegative total difference in columns (b) and (c) of Parts IIand III means that the book amount is higher.
8. Data Presented in Tables 1-6In Tables 1 through 6, we present selected Form 1120
tax return variables and Schedule M-3 variables. The taxnet income in the third dollar column of Panel 1 of thosetables is from Form 1120, page 1, line 28 and is after SOI’sediting to remove ICD. In the fourth dollar column is ourestimated ICD amount. The sum of those two columns isequal (except for taxpayer errors corrected by SOI) to thetax income amount for Schedule M-3, Part II, line 30,column (d) (shown in Panel 2 of Tables 3 to 6 in the fourthdollar column). The fifth dollar column in Panel 1 ofTables 1 to 6 is worldwide financial statement incomefrom Part I, line 4. The next to last dollar column in Panel1 of Tables 1 to 6 is book income from Part II, line 30,column (a). The last dollar column in Panel 1 of Tables 1to 6 is federal income tax expense calculated from Part III,lines 1 and 2. The sum of federal income tax expense andbook income is pretax book income shown in the firstdollar column of Panel 2 of Tables 3 to 6. The differencebetween pretax book income and M-3 tax income isshown as a temporary and a permanent pretax differencein Panel 2 of Tables 3 to 6. Also, the total pretax differenceis shown in addition to the positive and negative com-ponents of the temporary and permanent pretax differ-ences. Total pretax book-tax difference under the Talis-man (2000) approach is pretax book minus tax net incomeafter removal of ICD by SOI. In our data, the Talisman(2000) pretax book-tax difference is the negative of thesum of pretax temporary and permanent differences plusthe ICD amount.
9. Data Availability for the 2004 Schedule M-3
Table 1 identifies the population of tax returns on the2004 SOI advance corporate file potentially subject to therequirement to include the 2004 Form 1120, ScheduleM-3. The first requirement is that the corporation mustfile a Form 1120 and report assets of $10 million or moreon Form 1120, Schedule L.11 The 2004 SOI advance filecontains 33,353 records statistically representing 42,129tax returns for corporations filing Form 1120 with totalassets of $10 million or more.12 Those 42,129 tax returns
include 100 tax returns that are placeholder returns. Aplaceholder return is 2003 data for a record for which2004 editing is not complete when the advance file wasissued.13 The 2004 advance file includes 6,742 nonplace-holder returns for tax years ending November 2004 orearlier and 35,286 nonplaceholder tax returns for taxyears ending December 2004 or later.
For our 2004 Schedule M-3 study, placeholder returnson the 2004 SOI advance corporate file represent poten-tial missing Schedule M-3 data if the tax year ends inDecember 2004 or later for a corporation with $10 millionor more in assets. We estimate the possible importance toour study of placeholder returns and other returns thatwe eliminate for lack of reconciliation as missing data bydetermining the tax after credits associated with thosereturns.
The 42,129 tax returns with which Table 1 begins(corporations with assets of $10 million or more on the2004 advance file filing Form 1120) have an aggregate taxafter credits of $186,297 million. The 35,286 nonplace-holder tax returns for tax years ending December 2004 orlater on the 2004 advance file represent approximately 86percent of the tax after credits ($160,647 million). The6,742 nonplaceholder tax returns for tax years endingNovember 2004 or earlier represent approximately 9percent of the tax after credits ($16,178 million). The 100placeholder tax returns on the advance file representapproximately 5 percent of the tax after credits ($9,473million).
As we show in Table 2, if we assume all placeholdersare in fact subject to Schedule M-3 (tax years endingDecember 2004 or later), we have nonplaceholder taxreturn data for 35,286 tax returns representing approxi-mately 94 percent of the aggregate tax after credits for the35,386 tax returns (35,286 plus 100 placeholders) on the2004 SOI advance file assumed potentially subject to the2004 Schedule M-3 ($160,647 million compared with$160,647 million plus $9,473 million or $170,120).
Table 2 starts with the 35,286 nonplaceholder taxreturns for tax years ending December 2004 or later andthe 100 placeholder returns on the 2004 SOI advancecorporate file identified in Table 1 and identifies thepopulation of 30,430 tax returns for which we have
11In fact, approximately 200 companies with assets less than$10 million voluntarily filed Schedule M-3. We do not analyzethat data.
12The SOI corporate file is a statistical sample. The record fora smaller tax return (usually measured by total assets) may beweighted to represent more than one tax return. Generally, taxreturns for corporations with $50 million or more in assets havea weight of one — that is, the record represents only itself. Therecord for a smaller tax return generally has a weight greaterthan one (for example, five) — that is, the record representsseveral similar tax returns (for example, five tax returns). Thetotal 2004 SOI advance corporate file contains 112,928 records,
representing 5,614,795 corporate tax returns reporting aggregatetotal assets of $59,983,334 million and aggregate tax after creditsof $218,196 million. That total includes S corporations, regulatedinvestment trusts, and real estate investment trusts. Those donot normally pay corporate income tax. Excluding S corpora-tions, RICs, and REITs, the 2004 SOI advance file contains 63,739records representing 2,045,501 corporate tax returns reportingaggregate total assets of $46,941,900 million and aggregate taxafter credits of $217,705 million. The 33,353 records representing42,129 corporation tax returns filed on Form 1120, with eachreturn reporting assets of $10 million or more (2.1 percent of allcorporate returns excluding S, RIC, and REIT), have aggregatetotal assets of $40,137,268 million (85.5 percent of all corporatereturns excluding S corporations, RICs, and REITs) and aggre-gate tax after credits of $186,297 million (85.6 percent of allcorporate returns excluding S corporations, RICs, and REITs).
13See Section 4 for a fuller discussion of the sources ofplaceholder data.
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reconcilable Schedule M-3 data. We eliminate 2,418 re-turns for a lack of any Schedule M-3 reconciliation data.14
We eliminate 2,310 returns that present Schedule M-3data but either Part II, line 30, column (a) does notreconcile with Part I, line 11, or Part II, line 30, columns(a), (b), and (c) do not reconcile with column (d).15 Finally,we eliminate 128 returns because Part II, line 28 and PartIII, line 36 do not reconcile.16
The approximately 41 percent of corporations withassets below $25 million account for a large proportion ofthe Schedule M-3 data with problems. Approximately 7percent of the returns potentially subject to the 2004Schedule M-3 report no Schedule M-3 data (2,418 out of35,386). Approximately 66 percent of the nonreporters(1,601 out of 2,418) have assets below $25 million. Ap-proximately 7 percent of the returns potential subject tothe 2004 Schedule M-3 report Part II, line 30 data that donot reconcile (2,310 out of 35,386). Approximately 46percent of this group (1,058 out of 2,310) have assetsbelow $25 million. Approximately 37 percent of thereturns with Part II, line 27 reconciliation problems (47out of 128) have assets below $25 million.
The 30,430 tax returns that we retain from Table 2(with Schedule M-3 data for which both Part II, line 30and line 28 pass our reconciliation tests) represent 86percent of the 35,386 returns potentially subject to the
2004 Schedule M-3. The 30,430 tax returns have anaggregate tax after credits of $151,405 million, which is 89percent of the $170,120 million for the 35,386 returns.
10. Reporting of Columns A and D in 2004
Tables 3 through 7 focus on the 30,430 tax returns in2004 that have Schedule M-3 reconcilable data. Tables 3through 6 address specific characteristics of the 30,430returns. Table 7 presents aggregate Schedule M-3 data forthe 30,430 returns. Tables 8 through 11 present aggregateM-3 data for subpopulations of the 30,430 returns. Wedetermine if a corporation is a publicly traded companybased on its answer to Part I, line 3a.
Table 3 examines the reporting of book income and taxincome amounts in Parts II and III, columns (a) and (d).With the exception of Part II, line 30, a corporation mayomit the Parts II and III, columns (a) and (d) line-by-linebook income and tax income amounts in the first yearthat Schedule M-3 is required. Of the 30,430 corporationswith reconcilable Schedule M-3 data, 11,681 (38 percent)with 56 percent of tax after credits omitted this informa-tion, including 1,837 of the 3,922 publicly traded compa-nies (47 percent). Another 15,169 (50 percent) with 37percent of tax after credits provided reconcilable column(a) and (d) information for Parts II and III, including 1,803public companies (46 percent). The remaining 3,581 (12percent) with 6 percent of tax after credits provided theinformation, but one or more of the columns (a) and (d)in Parts II and III did not reconcile. That group includes282 public companies (7 percent). Nonreporting of col-umns (a) and (d) amounts appears to increase as the assetsize of the firm increases.
11. Financial Statement Type
Table 4 separates the 30,430 returns by financial state-ment class based on the answers to Schedule M-3, Part I,lines 1a, 1b, and 1c. The four classes are: SEC 10-K,audited but not SEC 10-K, unaudited, and books andrecords (no financial statements or no answer to Part I,line 1). The 4,195 returns (14 percent of 30,430) ofcorporations that file an SEC 10-K financial statementaccount for 70 percent of the tax after credits of the 30,430returns with 2004 Schedule M-3 reconcilable data, 91percent of the ICD, 95 percent of the net aggregatetemporary pretax book-tax difference, and 69 percent ofthe net aggregate permanent pretax book-tax difference.
12. Financial Statement Restatements
Table 5 focuses on Schedule M-3, Part I, lines 2b and2c, which asks questions about current-year restatementof financial statements and restatements within the fiveyears before the current year. The total population forTable 5 is the 30,430 returns with reconcilable ScheduleM-3 data. The 29,120 not reporting a restatement are 96percent of the returns but report 79 percent of the taxafter credits and include only 3,347 of the 3,922 publiclytraded companies, or 85 percent. The 5 percent of returnsthat report restatements report 21 percent of the tax aftercredits and include 15 percent of the public companies.
14We tested Part I, lines 4 through 11 and Part II, lines 26through 30 for any nonzero amount. In particular, a bookamount for the tax group should be reported on Part I, line 11and a reconciliation between that amount and tax net incomeshould be reported on Part II, line 30.
15We also eliminate a return if Schedule M-3, Part II, line 30,column (a) or column (d) is exactly zero. We do not test thereconciliation between Part II, line 30, column (d) and Form1120, page 1, line 28. Rather, if Part II, line 30, column (d) is notzero, we treat any positive difference with page 1, line 28 for aconsolidated return as the measure of the ICD removed by SOIfrom page 1, line 28.
16Part III is designed to report expenses and deductions aspositive amounts. The column sums on Part III, line 36 are thencarried over to Part II, line 28 with a sign change and added onPart II in determining Part II, line 30 column amounts. We testto see if Part II, line 28, columns (b) and (c) are each the negativeof those columns on Part III, line 36, and if Part II, line 27,columns (b) and (c) and Part II, line 28, columns (b) and (c) eachadd to Part II, line 30, columns (b) and (c). In addition to the 128returns (103 records) that we eliminated with those tests, therewere an additional 139 returns that initially failed. For 119 of thereturns that initially failed our tests, we determined that thetaxpayer reported expenses and deductions on Part III asnegative amounts and carried those amounts to Part II, line 28without a sign change when those amounts could appropriatelybe added. For aggregation purposes in Tables 6 through 17, wechanged the sign of amounts on Part III of those 119 returns sothat expenses and deductions were reported as positiveamounts. For 20 returns that initially failed our tests, wedetermined that the taxpayer reported expenses and deductionson Part III as positive amounts and carried those amounts toPart II, line 28 without a sign change when the taxpayer thensubtracted the Part II, line 28 column amounts to determine PartII, line 30. For aggregation purposes in Tables 6 through 17, wechanged the sign of amounts on Part II, line 28 so that thoseamounts could be added.
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13. Book-Tax Difference by IndustryTable 6 separates the 30,430 returns into five industry
groups: manufacturing, finance, information, utilitiesand transportation, and all others.17 The 30,430 returnsreport an aggregate book-tax difference of ($131,718)million, approximately 38 percent permanent. The 6,351returns in manufacturing report an aggregate net pretaxbook-tax difference of ($98,810) million, approximately75 percent of the total aggregate net pretax book-taxdifference for the 30,430 returns. The difference is ap-proximately 71 percent permanent. The 7,882 returns infinance report an aggregate net pretax book-tax differ-ence of ($12,267) million, approximately 9 percent of thetotal aggregate net pretax book-tax difference for the30,430 returns. The difference is approximately 60 percentpermanent. The 1,772 returns in information report anaggregate net pretax book-tax difference of positive$16,349 million, approximately (12) percent of the totalaggregate net negative pretax book-tax difference for the30,430 returns. The permanent difference component ispositive $20,879 million.
14. Aggregate 2004 Schedule M-3: AllTable 7 presents aggregate Schedule M-3 data for the
30,430 tax returns with reconcilable Schedule M-3 data.The data are present in three panels. Panel 1 providespopulation overview data in its first section; data forSchedule M-3, Part I in its second section; and datareconciling Part I book with Part II tax income (and SOItax net income) in its third section.
The first data section of Panel 1 of Table 7 reportsaggregate total assets (Form 1120, Schedule L), tax lesscredits, and tax net income (Form 1120, page 1, line 28)for the 30,430 returns, and reconciles the tax net incometo the tax income reported by the taxpayers on Part II,line 30, column (d). Also shown is tax-exempt interest(Form 1120, Schedule K, item 9).18
The second data section of Panel 1 of Table 7 presentsaggregate Schedule M-3, Part I data for the 30,430 re-turns. Part I, line 4 reports aggregate worldwide financialstatement income of $568,010 million. Part I, lines 5through 10 adjusts that to $515,422 million as aggregatebook income of includable corporations. Part I, line 4aggregate worldwide income is 110 percent of line 11aggregate book income. Part I, line 5 removes $204,469million (40 percent of book) for foreign entities and$86,534 million (17 percent of book) for U.S. entitiesincluded in the financial statement consolidation but notin the tax consolidation. Part I, line 7 adds $3,785 million(1 percent of book) for U.S. corporations not included inthe financial statement consolidation but included in thetax consolidation. Part I, line 8 adds $184,101 million (36percent of book) as adjustments to eliminations becauseof lines 5 through 7, usually the recognition of dividend
income and adjustment to minority interest income. Thenet effect of Part I, lines 5 through 8 is to remove $103,118million (20 percent of book). Part I, line 9 adds adjust-ments of $6,136 million (1 percent of book) for thedifference between financial statement year and tax re-turn year. Part I, line 10 adds other adjustments of $33,723million (7 percent of book). Part I, line 10 will generallybe used by corporations with insurance subsidiaries toreflect adjustments required by the use of statutoryaccounting for subsidiary book income. Statutory ac-counting for subsidiaries differs from GAAP for financialstatements, in particular, in the inclusion of some ICD.Finally, Part I, line 11 includes $11,915 million (2 percentof book) not reflected in Part I, lines 4 through 10 forcorporations with only books and records.19
The third data section of Panel 1 of Table 7 reconcilesaggregate Schedule M-3, Part I, line 11 book data withPart II pretax temporary and permanent book-tax differ-ences and with SOI-reported tax net income for the 30,430returns.
Panel 2 of Table 7 presents aggregate Schedule M-3,Part II data for the 30,430 returns. We present aggregatenet taxpayer data for book income amount (column (a)),temporary difference (column (b)), permanent difference(column (c)), tax income amount (column (d)), totaldifference (sum of columns (b) and (c)), and the totalaggregate positive and negative reported differences forcolumns (b) and (c) that determined the net differences.We note that the net aggregate pretax temporary andpermanent book-tax difference amounts are the net dif-ferences between relatively large aggregate positive andnegative temporary and permanent amounts and that thenet differences are often small in comparison. We alsopresent the frequency with which any nonzero amountwas reported on the line.
At the foot of Panel 2, we present the necessarycorrection of the Schedule M-3 reconciliation totals to apretax basis (before federal income tax expense). Me-chanically, Schedule M-3 compares book income after taxwith pretax tax income and includes federal income taxexpense as a book expense in Part III. For analysis, it isnecessary to correct the Schedule M-3 data to a consistentpretax basis (before federal income tax expense). This hasbeen the approach since Talisman (2000). To do this, weback out federal income tax expense from book income.
Part II, line 30 reports a temporary difference of($74,502) million and a permanent difference of $134,455million for a net difference of $59,953 million. Column (a)book is $515,421 million and column (d) tax is $575,375million. Tax income in column (d) is shown as $59,953million greater than column (a) book income. After cor-rection to a pretax basis, pretax book income is $707,092.The tax income of $575,375 million is in fact less thanpretax book income by $131,717 million.
17The major SOI industry sector codes are: manufacturing 31;finance (including real estate and holding companies) 52, 53, 55;information 51; utilities and transportation 22, 48.
18Tax-exempt interest is a major component of the permanentdifference reported on Schedule M-3, Part II, line 13, interestincome.
19The amounts on Part I, lines 4 through 10 plus the amountsentered only on line 11 (without any other entry on lines 4through 10) do not add to line 11 because of reconciliation errorsof ($1,243) present in the Part I data. Starting in 2005, allcorporations are instructed to begin on Part I, line 4.
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We know federal income tax expense from Part III,lines 1 and 2 even without column (a) data. Since column(d) is zero by definition, column (a) must be the negativeof the sums of columns (b) and (c).
Federal income tax expense is $191,670 million, ofwhich ($7,085) million is classified as temporary and($184,585) million is classified as permanent. Pretax bookincome is the sum of federal tax expense and bookincome. The adjustment amounts for columns (b) and (c)must be in total the negative of the column (a) adjustmentamount so that the adjustment has no effect on column(d) just as the original federal tax expense had no effecton column (d). We adjust column (b) by ($7,085) millionand column (c) by ($184,585) million. The result is thatcolumn (b) becomes slightly more negative and the signof column (c) changes and becomes negative. The ad-justed pretax column (b) temporary difference is($81,587) million and the adjusted pretax column (c) is($50,131) million. The adjusted total pretax difference is($131,718) million, the difference between pretax bookincome of $707,092 million and pretax tax income of$575,375 million. Our pretax total difference benchmarkis ($131,718) million. Pretax book for 2004 is $707,092million and is higher than tax net income of $523,015 onForm 1120, page 1, line 28 by $184,077 million, $131,718million measured by Schedule M-1 plus $52,698 of ICD,plus ($339) million of taxpayer errors not identified here.
The pretax total difference of ($131,718) million is($81,587) million temporary (62 percent) and ($50,131)million permanent (38 percent).
We express all total line difference as a percentage ofpretax book to determine which lines contribute the mostto the total difference. For example, the total aggregatenet pretax book-tax difference of ($131,717) million is(18.6) percentage points of pretax book. Part II, line 13interest income contributes ($15,053) million or (2.1)percentage points of the net (18.6) percentage points.20
Panel 3 of Table 7 presents aggregate Schedule M-3Part III data for the 30,430 returns. In Part III, we havechanged the sign of all data to agree with Part II. Weshow deductions in Part III as negative amounts. Sched-ule M-3, Part III shows deductions as positive amountsand changes the sign for the totals carried over to Part IIline 28.21 The signs of the differences we show in Part IIIindicate the effect of that expense or deduction on the netdifference between pretax book and tax income.
A few of the lines on Parts II and III account for mostof the net negative difference of (18.6) percentage pointsof pretax book. Some lines contribute to the net negativedifference of (18.6) percentage points of pretax book andsome lines offset that net negative difference. The largestnet negative difference on a line with a specific descrip-tion is not unexpected. Part III, line 31, depreciation,
reports tax depreciation greater than book for a net effectof ($112,778) million, contributing (15.9) percentagepoints to the total pretax difference of (18.6) percentagepoints of pretax book. The effect of depreciation is almostall temporary.
Part II, line 12, reportable transactions, reports bookhigher than tax by ($44,837) million, contributing (6.3)percentage points to the total pretax difference of (18.6)percentage points of pretax book. The effect of reportabletransactions is largely temporary but with a substantialpermanent component. Part III, line 9, nonqualified stockoptions, reports tax deductions greater than book ex-pense for a net effect of ($40,430), contributing (5.7)percentage points of pretax book. The effect of stockoptions is almost all permanent. Part III, line 16, pensionand profit-sharing, reports tax deductions greater thanbook expense for a net effect of ($17,972) million, contrib-uting (2.5) percentage points of total pretax difference.The effect of pensions is largely temporary.
In the other direction, Part III, line 28, other amortiza-tion or impairment write-offs, reports book expensegreater than tax for a net effect of $50,865 million,offsetting 7.2 percentage points of total pretax difference.The effect of amortization and impairments has bothsubstantial temporary and permanent components. PartII, line 17, inventory valuation adjustment (cost of goodssold), reports book lower than tax by $45,611 million,offsetting 6.5 percentage points of the (18.6) percentagepoints pretax total. The effect of inventory adjustments isalmost all temporary. Part II, line 18, sale versus lease (forsellers or lessors), reports book lower than tax by $29,324million, offsetting 4.1 percentage points of the (18.6)percentage points pretax total. The effect of sale versuslease is almost all temporary. Part II, line 9, U.S. partner-ships, reports book lower than tax by $18,861 million,offsetting 2.7 percentage points of the total pretax differ-ence.
Note that the differences on Part II, lines 23a and 23bfor asset disposition (book) and capital gains transactions(tax) are almost offsetting and reflect the structure ofSchedule M-3, which separates the accounting on twoseparate book and tax lines.
Perhaps the most interesting line difference is that forPart II, line 26 other income (loss) items with difference,with book higher than tax by ($116,892) million contrib-uting (16.5) percentage points of the (18.6) percentagepoints pretax total. The effect of this line has approxi-mately equal temporary and permanent components.22
15. Aggregate 2004 Schedule M-3: SEC 10-KTable 8 presents aggregate Schedule M-3 data for the
4,195 returns out of the 30,430 tax returns with reconcil-able Schedule M-3 data that have SEC 10-K financialstatements. Those returns report a pretax difference of($112,019) million — that is, book higher than tax — 85
20The source of the permanent difference of ($12,006) on line13 is a combination of tax-exempt interest of $10,786 million(reported in the first data section of Panel 1 of Table 6 from Form1120 Schedule K, item 9) and hybrid securities (for example,payments that are interest for book but not for tax).
21See the discussion of Part III and Part II, line 28 in Section9.
22In 2004 and 2005, corporations with a Form 1120 parentand insurance subsidiaries were permitted to report all insur-ance subsidiary differences on Part II, line 26, other income(loss) items with difference. This may have confounded ourability to interpret aggregate data for this line.
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percent of the total difference for the 30,430 returns. Thetemporary difference of ($77,512) is 95 percent of the totaltemporary difference for the 30,430 returns. The perma-nent difference of ($34,507) million is 69 percent of thetotal permanent difference for the 30,430 returns. Pretaxtotal difference is (20.2) percentage points of pretax bookcompared to (18.6) percentage points for the 30,340returns. Reportable transactions on Part II, line 12 con-tribute (6.3) percentage points matching the average forthe 30,340 returns. Other items with differences in Part II,line 26 contribute (10.5) percentage points compared to(16.5) percentage points for the 30,340 returns.
16. Aggregate 2004 Schedule M-3: AuditedTable 9 presents aggregate Schedule M-3 data for the
13,544 returns out of the 30,430 tax returns with recon-cilable Schedule M-3 data that have audited financialstatements that are not SEC 10-K. Those returns report apretax difference of ($34,250) million — that is, bookhigher than tax — 26 percent of the total difference for the30,430 returns. The temporary difference of ($14,870) is 18percent of the total temporary difference for the 30,430returns. The permanent difference of ($19,380) million is39 percent of the total permanent difference for the 30,430returns. Pretax total difference is (28.3) percentage pointsof pretax book compared to (18.6) percentage points forthe 30,340 returns. Reportable transactions on Part II, line12 contribute (3.7) percentage points compared to (6.3)percentage points for the 30,340 returns. Other items withdifferences in Part II, line 26 contribute (41.4) percentagepoints compared to (16.5) percentage points for the 30,340returns.
17. Aggregate 2004 Schedule M-3: A & D ReconcileTable 10 presents aggregate Schedule M-3 data for the
15,169 returns out of the 30,430 tax returns with recon-cilable Schedule M-3 data in Parts II and III, columns (a)and (d). Those returns report a pretax difference of($46,322) million — that is, book higher than tax — or 35percent of the total difference for the 30,430 returns. Thetemporary difference of ($3,807) is 5 percent of the totaltemporary difference for the 30,430 returns. The perma-nent difference of ($42,515) million is 85 percent of thetotal permanent difference for the 30,430 returns. Pretaxtotal difference is (20.3) percentage points of pretax bookcompared to (18.6) percentage points for the 30,340returns. Reportable transactions on Part II, line 12 con-tribute (7.6) percentage points compared to (6.3) percent-age points for the 30,340 returns. Other items withdifferences in Part II, line 26 contribute (3.6) percentagepoints compared to (16.5) percentage points for the 30,340returns.
18. Aggregate 2004 Schedule M-3: A & D BlankTable 11 presents aggregate Schedule M-3 data for the
11,681 returns out of the 30,430 tax returns with reconcil-able Schedule M-3 data and blank Parts II and III,columns (a) and (d). Those returns report a pretaxdifference of ($73,083) million — that is, book higher thantax — or 55 percent of the total difference for the 30,430returns. The temporary difference of ($68,006) is 83percent of the total temporary difference for the 30,430
returns. The permanent difference of ($5,077) million is 10percent of the total permanent difference for the 30,430returns. Pretax total difference is (17.0) percentage pointsof pretax book compared to (18.6) percentage points forthe 30,340 returns. Reportable transactions on Part II, line12 contribute (7.6) percentage points compared to (6.3)percentage points for the 30,340 returns. Other items withdifferences in Part II, line 26 contribute (24.5) percentagepoints compared to (16.5) percentage points for the 30,340returns.
19. Review of Supporting DocumentationOne of the authors23 reviewed more than 100,000
pages of 2004 Schedule M-3 documentation for more than100 tax returns, each reporting a positive or negativeamount of over $10 million in absolute value on Part II,line 26, other income (loss) items with differences; on PartIII, line 35, other expense/deduction items with differ-ences; or on Part I, lines 8 or 10, adjustments to elimina-tions and other adjustments. The following commentsreflect that research.
Note: For 2004 and 2005, consolidated tax groups witha Form 1120 parent and insurance subsidiaries werepermitted a shortcut to report all insurance subsidiaryactivity on Part II, line 26. That will change in 2006. Largetemporary and permanent differences are reported onPart II, line 26 in 2004 as a result.Negative and positive large differences on Part II, line26. Some companies report positive temporary and per-manent differences on Part II, line 26 as ICD. Unless theyare ICD of insurance subsidiaries subject to line 26reporting in 2004 and 2005, they should be reported onPart II, line 7. In several cases, matching dividendamounts were not reported on Part I, line 10, suggestingthat the dividends were not insurance-related.
Some companies use Part I, line 8 to reverse all orsubstantially all financial statement eliminations, andthen use Part II, line 26 to remove income improperlyincluded on Part I, line 11 as a result of the Part I, line 8reversals. Part I, line 11 should be the amount of consoli-dated financial statement net income of includable cor-porations (the consolidated tax group listed on Form 851)after all appropriate eliminations.
Some companies report ICD on Part I, line 8 andreport a negative permanent difference on Part II, line 26as a reduction of those ICD subject to tax. If the dividendsare foreign dividends that are ICD for financial account-ing, but not for tax accounting, and if the negativeadjustment reflects dividends representing previouslytaxed subpart F income, the adjustment should be re-ported on Part II, line 5.
Some companies use Part II, line 26 for ‘‘eliminations’’of income without further explanation. This does notmeet the standard of ‘‘separately stated and adequatelydescribed.’’
Some companies report ‘‘Mark to market’’ on Part II,line 26. Those amounts should have been reported onPart II, line 16.
23The review of supporting documents was performed byLegel.
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Some companies use Part II, line 26 to report equityincome or loss of subsidiaries. Those amounts should bereported on Part II, lines 1 or 6.
Part II, line 26 was also used to report permanentpositive difference totals in inventory valuation adjust-ments that should have been included on Part II, line 17.
Substantial temporary differences were reported asforeign exchange transaction gains/losses, as cancella-tion of debt income, and as royalty income. This isappropriate, but perhaps Schedule M-3 lines should becreated for those items in the future.Negative and positive large differences on Part III, line35. Large amounts of interest expense were reported onPart III, line 35. In 2005 interest expense is specified on aseparate line in Part III.
Large amounts of write-offs were reported on Part III,line 35. If those amounts represent write-offs or change inreserve balances, each reserve should be separately statedand adequately described. If they represent write-offs ofgood will, they should be reported on Part III, line 26,amortization/impairment of good will. If they are write-offs of assets, they should be reported on Part III, line 28,other amortization or impairment write-offs.Negative and positive large differences on Part I, lines8 and 10. Part I, line 8 was generally used to adjustconsolidation eliminations for entity income and lossremoved or added on Part I, lines 5 through 7, which isappropriate. Note in Table 7, Panel 1, that 3,699 returnshad entries on Part I, line 5, but only 1,736 had entries onPart I, line 8. Some companies removed foreign entityincome or loss on Part I, line 5, but had no consolidationelimination adjustment on line 8. That may be appropri-ate if entities removed were 100 percent owned (nominority interest), carried on the cost basis (no equityincome), and paid no dividends. The instructions for PartI, line 8 permit but do not require the reporting of zeronet changes.
Part I, line 10 was generally used to report the additionof ICD, which is appropriate if the addition was requiredby statutory accounting for insurance subsidiaries of aForm 1120 parent. For 2004 the documentation is notalways clear as to why ICD are added. In 2006 a new line,10a, will separately report the addition of ICD requiredby statutory accounting.
Part I, line 10 was also used to report valuationadjustments, eliminations, addition of equity earnings,and the removal of income from bankruptcy reorganiza-tion. It appears that those items should have been re-ported on Part I, lines 5 through 8, or within Parts II andIII. In particular, the income reported on Part I, line 11should be the share of the worldwide consolidated netincome on Part I, line 4 that belongs to the includablecorporations (the consolidated tax group listed on Form851) after all appropriate consolidation eliminations. PartI, line 10 should not be used to reduce the book incomeon line 11 as a means of reducing the book-tax differenceto be reconciled in Parts II and III.
20. Summary and ConclusionFor most publicly traded and many privately held
corporations with assets of $10 million or more, the newSchedule M-3 book-tax reconciliation replaced the 40-year-old Schedule M-1 effective December 2004. Part I
reconciles worldwide consolidated financial statementincome with income per income statement of includablecorporations (members of the tax return consolidationgroup listed on Form 851). Parts II and III, reconcileincome per income statement of includable corporations(book) with tax net income on Form 1120, page 1, line 28.Differences between book and tax are characterized astemporary or permanent. Part I is considered extremelyimportant. For the first time, the starting point for thebook-tax reconciliation is specified.
We begin our analysis with 42,129 returns for corpo-rations with assets of $10 million or more filing Form1120 for 2004. We eliminated 6,742 that have a November2004 or earlier year-end. The remaining 35,386 include100 placeholder returns that are potentially subject to the2004 Schedule M-3. For the nonplaceholder 35,286, wedetermine that 30,430 have reconcilable Schedule M-3data.
We estimate the possible importance to our study ofplaceholder records and other record that we eliminatefor lack of reconciliation as missing data by determiningthe tax after credits associated with those records. As-suming all placeholders are in fact subject to ScheduleM-3 (tax years ending December 2004 or later), ournonplaceholder usable Schedule M-3 data for 30,430 taxreturns represents approximately 89 percent of the aggre-gate tax after credits for the 35,386 tax returns on the 2004SOI advance file assumed potentially subject to the 2004.
We discuss the need to convert Schedule M-3 data topretax differences by backing out the effects of federal taxexpense. The adjustment to a common pretax base forboth book and tax is consistent with the literature sinceTalisman (2000). For the 30,430 returns with reconcilableSchedule M-3 data, pretax book is higher than tax in-come, and in Schedule M-3, it is reflected with a negativesign. For the 30,430 returns, Table 7 presents an aggregatenet pretax total difference of ($131,718) million, of which($81,587) million is temporary (62 percent) and ($50,131)million is permanent (38 percent).
Table 8 presents aggregate Schedule M-3 data for the4,195 returns out of the 30,430 tax returns with reconcil-able Schedule M-3 data than have SEC 10-K financialstatements. These returns report an aggregate net pretaxdifference of ($112,019) million, that is book higher thantax, 85 percent of the total difference for the 30,430. Thetemporary difference of ($77,512) is 95 percent of the totaltemporary difference for the 30,430. The permanent dif-ference of ($34,507) million is 69 percent of the totalpermanent difference for the 30,430. The share of tax aftercredits of those firms is 70 percent.
Perhaps the most interesting line difference in Table 7for the 30,430 returns is that for Part II, line 26, otherincome (loss) items with differences.24 It is 89 percent ofthe total pretax difference with book higher than tax by($116,892) million with approximately equal temporary
24In 2004 and 2005, corporations with a Form 1120 parentand insurance subsidiaries were permitted to report all insur-ance subsidiary differences on Part II, line 26, other income(loss) items with difference. This may have confounded ourability to interpret aggregate data for this line.
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and permanent components (each approximately 44 per-cent of the total pretax difference.) For the 13,544 returnsin Table 9 with audited financial statements that are nota SEC 10-K, other items with differences on Part II line 26contribute (41.4) percentage points of pretax book to totalpretax difference compared to (16.5) percentage pointsfor the 30,340 returns. For the 11,681 returns in Table 11with blank Parts II and III columns (a) and (d), Part II line26 contributes (24.5) percentage points of pretax book tototal pretax difference again compared to (16.5) percent-age points for the 30,340 returns. The IRS needs toinvestigate the supporting documentation for Part II line26 and determine if some items included there shouldhave new separate lines on Schedule M-3 in future years.
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Boynton, Charles, and William Wilson. ‘‘A Review ofSchedule M-3, the Internal Revenue Service’s NewBook-Tax Reconciliation Tool.’’ Petroleum Accountingand Financial Management Journal 25, No. 1 (Spring2006): 1-16.
Boynton, Charles, Paul Dobbins, Portia DeFilippes, andMichael Cooper. ‘‘Consolidation Issues in SOI 1997Form 1120 Book Data Compared to Matched COM-PUSTAT Data.’’ Unpublished Working Paper. Wash-ington, D.C.: Office of Tax Analysis, U.S. Departmentof the Treasury (May 2002).
Boynton, Charles, Portia DeFilippes, and Ellen Legel.‘‘Distribution of Schedule M-1 Corporate Book-TaxDifference Data 1990-2003 for Three Large-Size andThree Industry Groups.’’ Tax Notes 111, No. 2 (Apr. 10,2006): 177-212.
Boynton, Charles, Portia DeFilippes, and Ellen Legel.‘‘Prelude to Schedule M-3: Schedule M-1 CorporateBook-Tax Difference Data 1990-2003.’’ Tax Notes 109,No. 12 (Dec. 19, 2005): 1579-99.
Boynton, Charles, Portia DeFilippes, Petro Lisowsky, andLillian Mills. ‘‘Consolidation Anomalies in Form 1120Corporate Tax Return Data.’’ Tax Notes 104, No. 4 (July26, 2004): 405-417.
Hanlon, Michelle. ‘‘What Can We Infer About a Firm’sTaxable Income From Its Financial Statements?’’ Na-tional Tax Journal 56, No. 4 (December 2003): 831-863.
Hanlon, Michelle, and Terry Shevlin, ‘‘Book-Tax Confor-mity for Corporate Income: An Introduction to theIssues,’’ in Tax Policy and the Economy No. 19, edited byJames M. Poterba, National Bureau of Economic Re-search, Cambridge, Mass. (2005).
McGill, Gary A., and Edmund Outslay. ‘‘Did Enron PayTaxes?: Using Accounting Information to Decipher TaxStatus.’’ Tax Notes 96, No. 8 (Aug. 19, 2002): 1125-1136.
McGill, Gary, and Edmund Outslay. ‘‘Lost in Translation:Detecting Tax Shelter Activity in Financial State-ments.’’ National Tax Journal 57, No. 3 (September2004): 739-756.
Mills, Lillian. ‘‘Book-Tax Differences and Internal Rev-enue Service Adjustments.’’ Journal of Accounting Re-search 36, No. 2 (Autumn 1998): 343-356.
Mills, Lillian, and George Plesko. ‘‘Bridging the Gap: AProposal for More Informative Reconciling of Bookand Tax Income.’’ National Tax Journal 56, No. 4 (De-cember 2003): 865-893.
Mills, Lillian, Kaye Newberry, and William B. Trautman.‘‘Trends in Book-Tax Income and Balance Sheet Differ-ences.’’ Tax Notes 96, No. 8 (Aug. 19, 2002): 1109-1124
Plesko, George A. ‘‘Corporate Tax Avoidance and theProperties of Corporate Earnings.’’ National Tax Journal57, No. 3 (September 2004): 729-737.
Plesko, George A. ‘‘Reconciling Corporate Book and TaxNet Income, Tax Years 1996-1998.’’ Statistics of IncomeBulletin 21, No. 4 (Spring 2002): 1-16.
Plesko, George A., and Nina L. Shumofsky. ‘‘ReconcilingCorporate Book and Tax Net Income, Tax Years 1995-2001.’’ Data Release. Statistics of Income Bulletin 24, No.4 (Spring 2005): 103-108.
Talisman, Jonathan. ‘‘Corporate Tax Shelters and theCorporate Tax Base,’’ pp. 4-6, in ‘‘Penalty and InterestProvisions, Corporate Tax Shelters.’’ Testimony ofJonathan Talisman, Assistant Secretary (Tax Policy),U.S. Department of the Treasury, before the U.S.Senate, Committee on Finance, Washington, D.C.(Mar. 8, 2000).
U.S. Department of the Treasury. ‘‘Evidence of Growth inCorporate Tax Shelters.’’ The Problem of Corporate TaxShelters: Discussion, Analysis, and Legislative Proposals.Washington, D.C.: Government Printing Office (July1999): 31-33.
(Tables and Exhibit begin on the next page.)
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 953
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e1.
U.S
.C
orpo
rati
ons
Wit
hA
sset
sof
$10
Mill
ion
orM
ore
Pot
enti
ally
Subj
ect
orN
otSu
bjec
tto
2004
Sche
dule
M-3
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
2004
Adv
ance
d(8
,14,
20)
Ret
urns
Tota
lAss
ets
Tax
Aft
erC
redi
tsTa
xN
etIn
com
eE
stim
ated
ICD
Wor
ldw
ide
Inco
me
(Par
t1
Ln
4)B
ook
Inco
me
(Par
tII
Ln
30A
)F
edTa
xE
xpen
se
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
All
42,1
2910
040
,137
,268
100
186,
297
100
635,
757
100
57,5
9610
060
4,46
210
054
1,65
810
020
0,17
310
0
Stat
us
2004
Dec
orla
ter
35,2
8684
33,8
84,1
6484
160,
647
8654
9,81
886
57,3
7510
060
4,32
210
054
1,60
610
020
0,09
310
0
Plac
ehol
der
100
02,
485,
878
69,
473
538
,019
60
00
00
00
0
Subt
otal
:Po
tent
ially
subj
ect
toM
-335
,386
8436
,370
,042
9017
0,12
091
587,
837
9257
,375
100
604,
322
100
541,
606
100
200,
093
100
2004
Nov
orea
rlie
r6,
742
163,
767,
227
916
,178
947
,919
822
10
140
053
080
0
a≥
$25B
orM
ore
All
183
027
,095
,197
6882
,678
4437
2,21
559
38,5
1167
360,
403
6033
5,86
462
91,6
3046
2004
Dec
orla
ter
154
022
,737
,395
5774
,626
4033
1,82
952
38,5
1167
360,
403
6033
5,86
462
91,6
3046
2004
Nov
orea
rlie
r10
02,
331,
876
62,
144
113
,082
20
00
00
00
0
Plac
ehol
der
190
2,02
5,92
55
5,90
83
27,3
054
00
00
00
00
b≥
$2.5
Bto
$25B
All
1,05
43
7,51
2,68
219
53,2
5929
167,
751
2614
,100
2415
1,02
025
133,
990
2557
,555
29
2004
Dec
orla
ter
882
26,
309,
401
1643
,088
2313
3,21
921
14,0
9024
150,
894
2513
3,79
025
57,5
2729
2004
Nov
orea
rlie
r11
20
768,
162
26,
827
422
,224
311
012
60
200
028
0
Plac
ehol
der
600
435,
119
13,
345
212
,308
20
00
00
00
0
c≥
$250
Mto
$2.5
BA
ll5,
248
123,
817,
733
1033
,053
1878
,940
124,
516
882
,971
1464
,525
1237
,307
19
2004
Dec
orla
ter
4,68
811
3,37
1,66
68
28,5
8615
70,5
6811
4,30
57
82,8
1714
64,3
7512
37,2
9619
2004
Nov
orea
rlie
r54
71
421,
495
14,
247
29,
808
221
00
154
014
90
110
Plac
ehol
der
140
24,5
720
220
0-1
,436
00
00
00
00
0
d≥
$10M
to$2
50M
All
35,6
4485
1,71
1,65
64
17,3
089
16,8
513
470
110
,067
27,
279
113
,681
7
2004
Dec
orla
ter
29,5
6370
1,46
5,70
24
14,3
468
14,2
032
470
110
,207
27,
576
113
,640
7
2004
Nov
orea
rlie
r6,
074
1424
5,69
31
2,96
12
2,80
50
00
-140
0-2
970
410
Plac
ehol
der
70
261
01
0-1
570
00
00
00
00
COMMENTARY / SPECIAL REPORT
954 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e2.
U.S
.C
orpo
rati
ons
Pot
enti
ally
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
2004
Adv
ance
d(8
,14,
20)
Ret
urns
Tota
lAss
ets
Tax
Aft
erC
redi
tsTa
xN
etIn
com
eE
stim
ated
ICD
Wor
ldw
ide
Inco
me
(Par
tI
Ln
4)B
ook
Inco
me
(Par
tII
Ln
30A
)F
edTa
xE
xpen
se
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
2004
Dec
orla
ter
35,2
8610
033
,884
,164
9316
0,64
794
549,
818
9457
,375
100
604,
322
100
541,
606
100
200,
093
100
Plac
ehol
der
100
02,
485,
878
79,
473
638
,019
60
00
00
00
0
Pote
ntia
llysu
bjec
tto
M-3
35,3
8610
036
,370
,042
100
170,
120
100
587,
837
100
57,3
7510
060
4,32
210
054
1,60
610
020
0,09
310
0
M3
Dat
a
aL
30R
econ
cile
s30
,430
8632
,544
,249
8915
1,40
589
523,
015
8952
,698
9256
8,01
094
515,
421
9519
1,67
096
bL
30Pr
oble
ms
2,31
07
1,08
5,76
03
7,91
85
24,3
414
4,54
48
34,8
376
24,2
394
8,20
34
cL
28Pr
oble
ms
128
074
,463
040
70
1,05
60
133
01,
475
01,
946
022
00
dN
oI,
II2,
418
717
9,69
10
917
11,
406
00
00
00
00
0
a≥
$25B
orM
ore
All
154
022
,737
,395
6374
,626
4433
1,82
956
38,5
1167
360,
403
6033
5,86
462
91,6
3046
aL
30R
econ
cile
s15
00
22,3
89,6
1362
71,7
6842
321,
075
5538
,129
6635
0,84
058
329,
605
6187
,810
44
bL
30Pr
oble
ms
40
347,
782
12,
859
210
,754
238
21
9,56
42
6,25
91
3,82
02
b≥
$2.5
Bto
$25B
All
882
26,
309,
401
1743
,088
2513
3,21
923
14,0
9025
150,
894
2513
3,79
025
57,5
2729
aL
30R
econ
cile
s81
02
5,78
1,52
316
40,3
7424
126,
457
2210
,041
1813
7,46
323
124,
763
2354
,945
27
bL
30Pr
oble
ms
620
452,
925
12,
425
15,
769
13,
922
712
,255
27,
309
12,
377
1
cL
28Pr
oble
ms
50
41,9
110
251
088
70
126
01,
176
01,
718
020
60
dN
oI,
II4
033
,042
037
010
60
00
00
00
00
c≥
$250
Mto
$2.5
BA
ll4,
688
133,
371,
666
928
,586
1770
,568
124,
305
882
,817
1464
,375
1237
,296
19
aL
30R
econ
cile
s4,
303
123,
072,
159
826
,599
1664
,675
114,
093
772
,867
1255
,129
1035
,680
18
bL
30Pr
oble
ms
252
119
6,35
61
1,55
71
4,96
11
206
09,
699
29,
032
21,
608
1
cL
28Pr
oble
ms
310
28,2
730
109
015
70
60
251
021
50
80
dN
oI,
II10
20
74,8
790
321
077
50
00
00
00
00
d≥
$50
Mto
$250
MA
ll8,
822
251,
021,
378
39,
146
514
,635
233
41
12,2
072
10,7
292
9,02
15
aL
30R
econ
cile
s7,
943
2292
6,13
63
8,19
15
12,1
422
308
19,
515
29,
347
28,
840
4
bL
30Pr
oble
ms
517
157
,358
069
10
2,11
10
250
2,66
00
1,36
70
169
0
cL
28Pr
oble
ms
290
3,06
00
280
-40
00
310
140
120
dN
oI,
II33
31
34,8
240
235
038
60
00
00
00
0
e≥
$25
Mto
$50M
All
6,24
618
219,
588
12,
517
11,
230
010
80
-578
0-9
920
2,34
21
aL
30R
econ
cile
s5,
436
1519
1,02
51
2,22
71
824
010
30
-944
0-1
,006
02,
242
1
bL
30Pr
oble
ms
416
114
,997
017
00
319
05
035
50
70
103
0
cL
28Pr
oble
ms
160
520
06
017
00
011
07
0-4
0
dN
oI,
II37
91
13,0
450
113
069
00
00
00
00
0
f≥
$10
Mto
$25M
All
14,4
9441
224,
736
12,
683
2-1
,662
028
0-1
,421
0-2
,160
02,
278
1
aL
30R
econ
cile
s11
,789
3318
3,79
41
2,24
51
-2,1
580
240
-1,7
320
-2,4
170
2,15
31
bL
30Pr
oble
ms
1,05
83
16,3
420
216
042
70
40
304
026
40
125
0
cL
28Pr
oble
ms
470
699
013
00
00
06
0-8
0-1
0
dN
oI,
II1,
601
523
,901
021
00
690
00
00
00
00
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 955
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e3.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byP
rese
nce
of20
04O
ptio
nal
Col
umns
Aan
dD
Dat
aD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el1
of2
2004
Adv
ance
d(8
,14,
20)
Ret
urns
Pub
licTo
talA
sset
sTa
xA
fter
Cre
dits
Tax
Net
Inco
me
Est
imat
edIC
D
Wor
ldw
ide
Inco
me
(Par
tI
Ln
4)B
ook
Inco
me
(Par
tII
Ln
30A
)F
edTa
xE
xpen
se
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%
All
30,4
3010
03,
922
100
32,5
44,2
4910
015
1,40
510
052
3,01
510
052
,698
100
568,
010
100
515,
421
100
191,
670
100
A/D
Dat
a
A/D
Rec
onci
le15
,169
501,
803
4610
,448
,839
3256
,251
3716
4,44
131
17,1
3333
192,
238
3415
5,04
430
72,7
9638
A/D
Prob
lem
s3,
581
1228
27
1,96
2,36
56
9,78
36
35,8
667
1,56
63
42,6
058
38,1
637
11,4
236
A/D
Bla
nk11
,681
381,
837
4720
,133
,045
6285
,371
5632
2,70
862
33,9
9965
333,
167
5932
2,21
463
107,
451
56
a≥
$25B
orM
ore
All
150
011
83
22,3
89,6
1369
71,7
6847
321,
075
6138
,129
7235
0,84
062
329,
605
6487
,810
46
A/D
Rec
onci
le51
038
15,
830,
829
1822
,145
1577
,767
1511
,535
2210
1,85
418
74,9
8515
27,5
4214
A/D
Prob
lem
s13
09
01,
139,
450
44,
093
327
,518
574
61
29,1
565
25,2
095
4,48
52
A/D
Bla
nk86
071
215
,419
,335
4745
,529
3021
5,79
041
25,8
4949
219,
830
3922
9,41
145
55,7
8329
b≥
$2.5
Bto
$25B
All
810
349
713
5,78
1,52
318
40,3
7427
126,
457
2410
,041
1913
7,46
324
124,
763
2454
,945
29
A/D
Rec
onci
le35
31
207
52,
481,
116
815
,907
1151
,596
103,
155
648
,941
946
,171
922
,408
12
A/D
Prob
lem
s62
034
143
2,05
41
2,37
82
732
046
01
5,37
31
6,14
51
3,60
42
A/D
Bla
nk39
51
256
72,
868,
353
922
,089
1574
,130
146,
426
1283
,150
1572
,446
1428
,933
15
c≥
$250
Mto
$2.5
B
All
4,30
314
1,58
340
3,07
2,15
99
26,5
9918
64,6
7512
4,09
38
72,8
6713
55,1
2911
35,6
8019
A/D
Rec
onci
le2,
077
774
019
1,47
4,10
95
11,7
298
27,4
125
2,22
04
34,8
056
28,1
095
15,9
928
A/D
Prob
lem
s33
51
902
254,
884
12,
140
17,
073
127
51
8,20
11
6,47
71
2,31
01
A/D
Bla
nk1,
890
675
319
1,34
3,16
64
12,7
308
30,1
896
1,59
73
29,8
625
20,5
424
17,3
779
d≥
$50M
to$2
50M
All
7,94
326
1,10
028
926,
136
38,
191
512
,142
230
81
9,51
52
9,34
72
8,84
05
A/D
Rec
onci
le4,
075
1352
213
473,
625
14,
133
37,
741
119
80
5,72
21
6,03
31
4,51
02
A/D
Prob
lem
s77
53
782
86,8
570
668
039
00
40
465
045
10
597
0
A/D
Bla
nk3,
092
1050
113
365,
653
13,
389
24,
010
110
70
3,32
81
2,86
31
3,73
32
e≥
$25M
to$5
0M
All
5,43
618
302
819
1,02
51
2,22
71
824
010
30
-944
0-1
,006
02,
242
1
A/D
Rec
onci
le2,
792
914
94
98,0
310
1,16
31
669
013
081
80
890
1,18
31
A/D
Prob
lem
s64
12
271
22,1
830
204
023
90
780
-617
014
00
167
0
A/D
Bla
nk2,
003
712
63
70,8
110
859
1-8
30
120
-1,1
450
-1,2
350
892
0
f≥
$10
Mto
$25
M
All
11,7
8939
322
818
3,79
41
2,24
51
-2,1
580
240
-1,7
320
-2,4
170
2,15
31
A/D
Rec
onci
le5,
820
1914
74
91,1
300
1,17
21
-744
013
098
0-3
440
1,16
11
A/D
Prob
lem
s1,
754
645
126
,937
029
90
-86
03
027
0-2
600
259
0
A/D
Bla
nk4,
215
1413
03
65,7
270
775
1-1
,328
09
0-1
,858
0-1
,813
073
30
COMMENTARY / SPECIAL REPORT
956 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e3.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byP
rese
nce
of20
04O
ptio
nal
Col
umns
Aan
dD
Dat
aD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el2
of2
2004
Adv
ance
d(8
,14,
20)
Pre
tax
Boo
kP
reta
xTe
mp
Dif
fP
reta
xP
erm
Dif
fTa
xIn
com
e(P
art
IIL
n30
D)
Tota
lP
reta
xD
iff
Neg
ativ
eP
reta
xTe
mp
Dif
fP
osit
ive
Pre
tax
Tem
pD
iff
Neg
ativ
eP
reta
xP
erm
Dif
fP
osit
ive
Pre
tax
Per
mD
iff
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%
All
707,
092
100
-81,
587
100
-50,
131
100
575,
374
100
-131
,718
100
-674
,451
100
592,
864
100
-327
,974
100
277,
843
100
A/D
Dat
a
A/D
Rec
onci
le22
7,84
032
-3,8
075
-42,
515
8518
1,51
932
-46,
322
35-2
20,7
0733
216,
900
37-1
17,6
5936
75,1
4427
A/D
Prob
lem
s49
,586
7-9
,773
12-2
,539
537
,273
6-1
2,31
29
-38,
324
628
,551
5-2
3,24
97
20,7
107
A/D
Bla
nk42
9,66
661
-68,
006
83-5
,077
1035
6,58
262
-73,
083
55-4
15,4
1962
347,
413
59-1
87,0
6757
181,
989
66
a≥
$25
Bor
Mor
e
All
417,
415
59-2
8,75
535
-29,
472
5935
9,18
862
-58,
227
44-3
52,8
6552
324,
111
55-1
82,7
5356
153,
281
55
A/D
Rec
onci
le10
2,52
814
23,1
58-2
8-3
6,39
273
89,2
9416
-13,
233
10-7
1,83
411
94,9
9316
-60,
564
1824
,172
9
A/D
Prob
lem
s29
,694
4-3
,497
42,
067
-428
,264
5-1
,430
1-1
2,69
52
9,19
82
-9,3
143
11,3
814
A/D
Bla
nk28
5,19
440
-48,
416
594,
853
-10
241,
631
42-4
3,56
333
-268
,336
4021
9,92
037
-112
,874
3411
7,72
742
b≥
$2.5
Bto
$25B
All
179,
708
25-3
4,34
042
-8,9
6118
136,
407
24-4
3,30
133
-183
,496
2714
9,15
625
-87,
404
2778
,443
28
A/D
Rec
onci
le68
,579
10-1
3,66
017
-172
054
,748
10-1
3,83
211
-76,
855
1163
,195
11-3
1,36
010
31,1
8911
A/D
Prob
lem
s9,
750
1-4
,370
5-4
,191
81,
189
0-8
,561
6-1
5,49
62
11,1
272
-10,
523
36,
332
2
A/D
Bla
nk10
1,37
914
-16,
311
20-4
,598
980
,470
14-2
0,90
916
-91,
145
1474
,835
13-4
5,52
114
40,9
2215
c≥
$250
Mto
$2.5
B
All
90,8
0913
-13,
212
16-9
,020
1868
,577
12-2
2,23
217
-93,
141
1479
,929
13-4
2,78
713
33,7
6712
A/D
Rec
onci
le44
,102
6-1
0,27
713
-4,2
198
29,6
055
-14,
497
11-4
8,78
07
38,5
036
-18,
756
614
,537
5
A/D
Prob
lem
s8,
787
1-1
,435
2-1
670
7,18
61
-1,6
021
-5,7
281
4,29
41
-2,3
151
2,14
81
A/D
Bla
nk37
,920
5-1
,500
2-4
,634
931
,786
6-6
,134
5-3
8,63
36
37,1
336
-21,
715
717
,082
6
d≥
$50
Mto
$250
M
All
18,1
873
-3,5
294
-2,2
144
12,4
442
-5,7
444
-30,
151
426
,622
4-1
1,12
43
8,91
03
A/D
Rec
onci
le10
,542
1-1
,594
2-1
,012
27,
936
1-2
,606
2-1
5,17
72
13,5
832
-4,5
861
3,57
51
A/D
Prob
lem
s1,
049
0-4
161
-239
039
40
-655
0-2
,694
02,
279
0-7
530
514
0
A/D
Bla
nk6,
596
1-1
,519
2-9
632
4,11
31
-2,4
832
-12,
280
210
,760
2-5
,784
24,
821
2
e≥
$25M
to$5
0M
All
1,23
60
-553
121
90
902
0-3
340
-7,4
661
6,91
21
-1,3
810
1,60
01
A/D
Rec
onci
le1,
273
0-5
761
-27
066
90
-604
0-3
,926
13,
350
1-8
540
827
0
A/D
Prob
lem
s30
70
570
-45
031
80
120
-1,0
230
1,08
10
-192
014
60
A/D
Bla
nk-3
430
-35
029
2-1
-85
025
80
-2,5
160
2,48
20
-334
062
70
f≥
$10M
to$2
5M
All
-263
0-1
,197
1-6
831
-2,1
440
-1,8
801
-7,3
311
6,13
51
-2,5
261
1,84
21
A/D
Rec
onci
le81
70
-857
1-6
931
-733
0-1
,550
1-4
,135
13,
278
1-1
,538
084
40
A/D
Prob
lem
s-1
0-1
140
370
-78
0-7
70
-687
057
30
-151
018
80
A/D
Bla
nk-1
,080
0-2
260
-27
0-1
,332
0-2
530
-2,5
090
2,28
40
-837
081
00
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 957
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e4.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byF
inan
cial
Stat
emen
tT
ype
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el1
of2
2004
Adv
ance
d(8
,14,
20)
Ret
urns
Pub
licTo
talA
sset
sTa
xA
fter
Cre
dits
Tax
Net
Inco
me
Est
imat
edIC
D
Wor
ldw
ide
Inco
me
(Par
tI
Ln
4)B
ook
Inco
me
(Par
tII
Ln
30A
)F
edTa
xE
xpen
se
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%
All
30,4
3010
03,
922
100
32,5
44,2
4910
015
1,40
510
052
3,01
510
052
,698
100
568,
010
100
515,
421
100
191,
670
100
Type
aSE
C10
-K4,
195
143,
673
9422
,287
,327
6810
5,53
370
394,
570
7548
,046
9144
0,91
278
414,
124
8014
0,25
673
bA
udite
d13
,544
4517
34
5,69
5,53
318
29,1
3919
85,2
1116
1,61
03
82,2
0914
87,7
8617
33,2
3417
cU
naud
ited
7,71
525
682
2,81
8,89
59
10,9
557
31,6
706
779
141
,150
7-5
580
11,9
446
dB
ooks
/Rec
4,97
616
80
1,74
2,49
35
5,77
84
11,5
632
2,26
34
3,73
81
14,0
683
6,23
63
a≥
$25B
orM
ore
All
150
011
83
22,3
89,6
1369
71,7
6847
321,
075
6138
,129
7235
0,84
062
329,
605
6487
,810
46
aSE
C10
-K11
60
**
16,7
80,0
7952
59,8
2540
275,
706
5337
,404
7128
8,07
551
297,
682
5874
,038
39
bA
udite
d19
0*
*3,
309,
556
108,
725
635
,138
721
60
32,0
856
43,6
378
9,91
15
cU
naud
ited
90
**
1,52
9,56
55
2,65
82
10,0
092
120
28,7
395
-11,
533
-22,
869
1
dB
ooks
/Rec
60
**
770,
413
256
00
221
049
71
1,94
10
-182
099
21
b≥
$2.5
Bto
$25B
All
810
349
713
5,78
1,52
318
40,3
7427
126,
457
2410
,041
1913
7,46
324
124,
763
2454
,945
29
aSE
C10
-K51
42
**
3,89
0,35
412
31,0
2820
95,5
9218
7,86
015
117,
813
2194
,891
1844
,734
23
bA
udite
d12
70
**
756,
786
24,
848
312
,551
264
61
12,9
072
12,3
102
5,78
73
cU
naud
ited
950
**
613,
440
22,
523
211
,821
243
51
4,93
41
5,96
21
3,34
12
dB
ooks
/Rec
750
**
520,
942
21,
976
16,
494
11,
100
21,
809
011
,599
21,
083
1
c≥
$250
Mto
$2.5
B
All
4,30
314
1,58
340
3,07
2,15
99
26,5
9918
64,6
7512
4,09
38
72,8
6713
55,1
2911
35,6
8019
aSE
C10
-K1,
745
61,
529
391,
442,
075
413
,250
927
,769
52,
701
539
,133
726
,052
519
,835
10
bA
udite
d1,
611
531
197
4,04
33
8,51
36
24,8
735
591
125
,110
421
,929
410
,071
5
cU
naud
ited
560
223
139
1,47
51
3,12
82
8,51
72
239
08,
907
26,
696
13,
167
2
dB
ooks
/Rec
386
10
026
4,56
61
1,70
91
3,51
61
563
1-2
830
452
02,
607
1
d≥
$50M
to$2
50M
All
7,94
326
1,10
028
926,
136
38,
191
512
,142
230
81
9,51
52
9,34
72
8,84
05
aSE
C10
-K1,
160
498
725
157,
550
01,
303
1-2
,471
077
0-2
,082
0-2
,346
01,
502
1
bA
udite
d4,
195
1490
248
1,96
61
4,77
13
12,3
482
151
012
,149
211
,167
25,
156
3
cU
naud
ited
1,56
85
201
172,
290
11,
332
190
50
690
-850
0-9
960
1,34
41
dB
ooks
/Rec
1,02
03
40
114,
330
078
51
1,36
00
120
298
01,
522
083
80
e≥
$25M
to$5
0M
All
5,43
618
302
819
1,02
51
2,22
71
824
010
30
-944
0-1
,006
02,
242
1
aSE
C10
-K31
71
266
711
,371
084
0-1
,267
00
0-1
,608
0-1
,358
096
0
bA
udite
d2,
693
925
195
,099
01,
260
11,
368
03
074
60
265
01,
321
1
cU
naud
ited
1,45
25
80
50,7
980
562
039
10
210
-208
0-3
850
478
0
dB
ooks
/Rec
974
33
033
,758
032
10
333
079
012
60
472
034
70
f≥
$10M
to$2
5M
All
11,7
8939
322
818
3,79
41
2,24
51
-2,1
580
240
-1,7
320
-2,4
170
2,15
31
aSE
C10
-K34
31
292
75,
898
043
0-7
580
40
-419
0-7
970
500
bA
udite
d4,
899
1622
178
,083
01,
022
1-1
,066
04
0-7
880
-1,5
220
988
1
cU
naud
ited
4,03
213
80
61,3
280
751
027
04
0-3
720
-302
074
50
dB
ooks
/Rec
2,51
58
00
38,4
850
428
0-3
600
120
-153
020
50
370
0
COMMENTARY / SPECIAL REPORT
958 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e4.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byF
inan
cial
Stat
emen
tT
ype
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el2
of2
2004
Adv
ance
d(8
,14,
20)
Pre
tax
Boo
kP
reta
xTe
mp
Dif
fP
reta
xP
erm
Dif
fTa
xIn
com
e(P
art
IIL
n30
D)
Tota
lP
reta
xD
iff
Neg
ativ
eP
reta
xTe
mp
Dif
fP
osit
ive
Pre
tax
Tem
pD
iff
Neg
ativ
eP
reta
xP
erm
Dif
fP
osit
ive
Pre
tax
Per
mD
iff
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%
All
707,
092
100
-81,
587
100
-50,
131
100
575,
374
100
-131
,718
100
-674
,451
100
592,
864
100
-327
,974
100
277,
843
100
Type
aSE
C10
-K55
4,38
078
-77,
512
95-3
4,50
769
442,
362
77-1
12,0
1985
-440
,975
6536
3,46
361
-252
,166
7721
7,65
978
bA
udite
d12
1,02
017
-14,
870
18-1
9,38
039
86,7
7015
-34,
250
26-1
45,9
3222
131,
061
22-4
6,45
314
27,0
7310
cU
naud
ited
11,3
862
16,0
02-2
05,
038
-10
32,4
276
21,0
41-1
6-5
1,18
68
67,1
8911
-14,
617
419
,655
7
dB
ooks
/Rec
20,3
053
-5,2
076
-1,2
833
13,8
162
-6,4
895
-36,
357
531
,151
5-1
4,73
84
13,4
555
a≥
$25B
orM
ore
All
417,
415
59-2
8,75
535
-29,
472
5935
9,18
862
-58,
227
44-3
52,8
6552
324,
111
55-1
82,7
5356
153,
281
55
aSE
C10
-K37
1,72
053
-52,
045
64-6
,572
1331
3,10
354
-58,
618
45-2
55,6
4338
203,
598
34-1
53,3
1347
146,
741
53
bA
udite
d53
,549
81,
811
-2-2
0,00
640
35,3
546
-18,
195
14-7
9,22
112
81,0
3314
-23,
607
73,
601
1
cU
naud
ited
-8,6
64-1
21,9
80-2
7-3
,302
710
,014
218
,678
-14
-12,
852
234
,832
6-4
,304
11,
002
0
dB
ooks
/Rec
810
0-5
011
409
-171
80
-92
0-5
,149
14,
648
1-1
,528
01,
937
1
b≥
$2.5
Bto
$25B
All
179,
708
25-3
4,34
042
-8,9
6118
136,
407
24-4
3,30
133
-183
,496
2714
9,15
625
-87,
404
2778
,443
28
aSE
C10
-K13
9,62
620
-17,
290
21-1
8,97
138
103,
365
18-3
6,26
128
-129
,013
1911
1,72
219
-68,
372
2149
,401
18
bA
udite
d18
,097
3-8
,432
103,
532
-713
,197
2-4
,901
4-2
3,25
43
14,8
223
-6,1
402
9,67
23
cU
naud
ited
9,30
21
-5,6
387
8,58
8-1
712
,253
22,
950
-2-1
5,64
02
10,0
022
-3,3
921
11,9
804
dB
ooks
/Rec
12,6
822
-2,9
804
-2,1
104
7,59
31
-5,0
904
-15,
589
212
,609
2-9
,500
37,
390
3
c≥
$250
Mto
$2.5
B
All
90,8
0913
-13,
212
16-9
,020
1868
,577
12-2
2,23
217
-93,
141
1479
,929
13-4
2,78
713
33,7
6712
aSE
C10
-K45
,887
6-7
,507
9-8
,066
1630
,314
5-1
5,57
312
-48,
471
740
,964
7-2
6,27
88
18,2
117
bA
udite
d32
,000
5-5
,487
7-1
,083
225
,430
4-6
,570
5-2
4,34
14
18,8
543
-10,
322
39,
239
3
cU
naud
ited
9,86
31
-21
0-1
,088
28,
755
2-1
,108
1-1
1,29
32
11,2
732
-4,6
261
3,53
81
dB
ooks
/Rec
3,05
90
-197
01,
217
-24,
079
11,
019
-1-9
,036
18,
839
1-1
,561
02,
777
1
d≥
$50M
to$2
50M
All
18,1
873
-3,5
294
-2,2
144
12,4
442
-5,7
444
-30,
151
426
,622
4-1
1,12
43
8,91
03
aSE
C10
-K-8
430
-641
1-9
102
-2,3
940
-1,5
511
-6,7
881
6,14
71
-3,8
711
2,96
01
bA
udite
d16
,322
2-2
,601
3-1
,225
212
,496
2-3
,827
3-1
2,68
02
10,0
792
-4,3
881
3,16
21
cU
naud
ited
348
022
60
399
-197
30
624
0-7
,429
17,
655
1-1
,690
12,
089
1
dB
ooks
/Rec
2,36
00
-513
1-4
771
1,36
90
-990
1-3
,254
02,
741
0-1
,176
069
90
e≥
$25M
to$5
0M
All
1,23
60
-553
121
90
902
0-3
340
-7,4
661
6,91
21
-1,3
810
1,60
01
aSE
C10
-K-1
,262
0-1
80
100
-1,2
710
-90
-684
066
60
-178
018
80
bA
udite
d1,
586
0-2
450
200
1,36
10
-225
0-3
,456
13,
210
1-5
680
588
0
cU
naud
ited
940
100
303
-140
60
313
0-1
,740
01,
750
0-3
360
639
0
dB
ooks
/Rec
819
0-3
000
-114
040
60
-413
0-1
,586
01,
286
0-2
990
185
0
f≥
$10M
to$2
5M
All
-263
0-1
,197
1-6
831
-2,1
440
-1,8
801
-7,3
311
6,13
51
-2,5
261
1,84
21
aSE
C10
-K-7
470
-10
03
0-7
540
-70
-377
036
60
-154
015
70
bA
udite
d-5
330
840
-617
1-1
,066
0-5
330
-2,9
780
3,06
31
-1,4
290
811
0
cU
naud
ited
442
0-5
551
139
026
0-4
160
-2,2
320
1,67
80
-269
040
70
dB
ooks
/Rec
575
0-7
161
-207
0-3
490
-924
1-1
,744
01,
028
0-6
750
467
0
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 959
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e5.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byF
inan
cial
Stat
emen
tR
esta
tem
ents
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el1
of2
2004
Adv
ance
d(8
,14,
20)
Ret
urns
Pub
licTo
talA
sset
sTa
xA
fter
Cre
dits
Tax
Net
Inco
me
Est
imat
edIC
D
Wor
ldw
ide
Inco
me
(Par
tI
Ln
4)B
ook
Inco
me
(Par
tII
Ln
30A
)F
edTa
xE
xpen
se
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%
All
30,4
3010
03,
922
100
32,5
44,2
4910
015
1,40
510
052
3,01
510
052
,698
100
568,
010
100
515,
421
100
191,
670
100
Res
tate
No
Res
tate
men
t29
,120
963,
347
8526
,315
,984
8111
9,99
079
403,
194
7749
,045
9342
8,62
875
419,
030
8115
0,28
778
Res
tate
Prio
r5
Yrs
only
1,15
04
475
125,
724,
441
1829
,736
2011
3,87
822
2,97
66
127,
549
2287
,092
1736
,849
19
Cur
rent
Yea
rR
esta
te16
11
100
350
3,82
42
1,67
81
5,94
31
677
111
,833
29,
299
24,
535
2
a≥
$25B
orM
ore
All
150
011
83
22,3
89,6
1369
71,7
6847
321,
075
6138
,129
7235
0,84
062
329,
605
6487
,810
46
No
Res
tate
men
t11
10
842
17,5
23,0
6454
50,7
1333
214,
983
4136
,927
7022
5,51
240
248,
383
4860
,284
31
Res
tate
Prio
r5
Yrs
only
330
281
4,56
4,19
014
20,8
9214
103,
452
201,
202
211
6,51
021
75,1
2815
25,1
3313
Cur
rent
Yea
rR
esta
te6
06
030
2,35
91
163
02,
640
10
08,
817
26,
094
12,
392
1
b≥
$2.5
Bto
$25B
All
810
349
713
5,78
1,52
318
40,3
7427
126,
457
2410
,041
1913
7,46
324
124,
763
2454
,945
29
No
Res
tate
men
t69
82
401
104,
795,
149
1533
,233
2211
5,98
722
8,25
516
124,
989
2211
1,11
822
45,5
1824
Res
tate
Prio
r5
Yrs
only
100
082
283
9,85
93
6,19
34
8,76
12
1,13
32
10,9
252
11,9
222
8,06
24
Cur
rent
Yea
rR
esta
te13
013
014
6,51
50
949
11,
709
065
31
1,54
90
1,72
40
1,36
51
c≥
$250
Mto
$2.5
B
All
4,30
314
1,58
340
3,07
2,15
99
26,5
9918
64,6
7512
4,09
38
72,8
6713
55,1
2911
35,6
8019
No
Res
tate
men
t3,
898
131,
313
332,
751,
552
823
,906
1661
,419
123,
430
770
,828
1253
,744
1031
,915
17
Res
tate
Prio
r5
Yrs
only
344
122
16
272,
529
12,
177
11,
644
063
81
603
0-7
40
3,03
62
Cur
rent
Yea
rR
esta
te60
049
148
,077
051
60
1,61
20
250
1,43
60
1,45
90
729
0
d≥
$50M
to$2
50M
All
7,94
326
1,10
028
926,
136
38,
191
512
,142
230
81
9,51
52
9,34
72
8,84
05
No
Res
tate
men
t7,
592
2598
325
880,
915
37,
763
511
,889
230
61
9,55
52
8,80
52
8,24
34
Res
tate
Prio
r5
Yrs
only
307
110
13
39,3
890
384
024
80
20
-104
051
00
560
0
Cur
rent
Yea
rR
esta
te44
017
05,
831
044
05
00
064
033
036
0
e≥
$25M
to$5
0M
All
5,43
618
302
819
1,02
51
2,22
71
824
010
30
-944
0-1
,006
02,
242
1
No
Res
tate
men
t5,
276
1726
97
185,
426
12,
169
188
80
103
0-7
540
-810
02,
197
1
Res
tate
Prio
r5
Yrs
only
139
023
14,
833
055
0-4
30
00
-162
0-1
850
360
Cur
rent
Yea
rR
esta
te20
010
076
60
30
-20
00
0-2
80
-11
09
0
f≥
$10M
to$2
5M
All
11,7
8939
322
818
3,79
41
2,24
51
-2,1
580
240
-1,7
320
-2,4
170
2,15
31
No
Res
tate
men
t11
,545
3829
78
179,
878
12,
206
1-1
,971
024
0-1
,503
0-2
,210
02,
129
1
Res
tate
Prio
r5
Yrs
only
227
120
13,
640
037
0-1
830
00
-223
0-2
080
210
Cur
rent
Yea
rR
esta
te17
04
027
60
30
-30
00
-50
10
30
COMMENTARY / SPECIAL REPORT
960 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e5.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byF
inan
cial
Stat
emen
tR
esta
tem
ents
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el2
of2
2004
Adv
ance
d(8
,14,
20)
Pre
tax
Boo
kP
reta
xTe
mp
Dif
fP
reta
xP
erm
Dif
fTa
xIn
com
e(P
art
IIL
n30
D)
Tota
lP
reta
xD
iff
Neg
ativ
eP
reta
xTe
mp
Dif
fP
osit
ive
Pre
tax
Tem
pD
iff
Neg
ativ
eP
reta
xP
erm
Dif
fP
osit
ive
Pre
tax
Per
mD
iff
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%
All
707,
092
100
-81,
587
100
-50,
131
100
575,
374
100
-131
,718
100
-674
,451
100
592,
864
100
-327
,974
100
277,
843
100
Res
tate
No
Res
tate
men
t56
9,31
681
-77,
226
95-4
0,17
680
451,
914
79-1
17,4
0289
-522
,357
7744
5,13
175
-264
,042
8122
3,86
581
Res
tate
Prio
r5
Yrs
only
123,
941
184,
069
-5-1
1,17
022
116,
841
20-7
,100
5-1
33,1
4120
137,
210
23-5
7,36
817
46,1
9817
Cur
rent
Yea
rR
esta
te13
,834
2-8
,430
101,
215
-26,
619
1-7
,215
5-1
8,95
33
10,5
232
-6,5
642
7,78
03
a≥
$25B
orM
ore
All
417,
415
59-2
8,75
535
-29,
472
5935
9,18
862
-58,
227
44-3
52,8
6552
324,
111
55-1
82,7
5356
153,
281
55
No
Res
tate
men
t30
8,66
844
-35,
790
44-2
0,98
442
251,
894
44-5
6,77
443
-267
,915
4023
2,12
539
-140
,084
4311
9,10
143
Res
tate
Prio
r5
Yrs
only
100,
261
1414
,140
-17
-9,7
4719
104,
654
184,
393
-3-7
2,60
411
86,7
4315
-40,
351
1230
,604
11
Cur
rent
Yea
rR
esta
te8,
486
1-7
,105
91,
258
-32,
640
0-5
,846
4-1
2,34
72
5,24
21
-2,3
171
3,57
61
b≥
$2.5
Bto
$25B
All
179,
708
25-3
4,34
042
-8,9
6118
136,
407
24-4
3,30
133
-183
,496
2714
9,15
625
-87,
404
2778
,443
28
No
Res
tate
men
t15
6,63
522
-24,
386
30-8
,098
1612
4,15
122
-32,
485
25-1
35,7
2420
111,
338
19-7
2,38
722
64,2
8923
Res
tate
Prio
r5
Yrs
only
19,9
843
-9,0
4211
-1,0
482
9,89
42
-10,
090
8-4
3,14
56
34,1
046
-11,
837
410
,789
4
Cur
rent
Yea
rR
esta
te3,
089
0-9
121
185
02,
362
0-7
271
-4,6
271
3,71
51
-3,1
801
3,36
51
c≥
$250
Mto
$2.5
B
All
90,8
0913
-13,
212
16-9
,020
1868
,577
12-2
2,23
217
-93,
141
1479
,929
13-4
2,78
713
33,7
6712
No
Res
tate
men
t85
,659
12-1
2,20
215
-8,7
8418
64,6
7411
-20,
986
16-7
6,90
311
64,7
0111
-37,
495
1128
,711
10
Res
tate
Prio
r5
Yrs
only
2,96
20
-567
1-1
280
2,26
70
-695
1-1
4,56
22
13,9
952
-4,4
021
4,27
42
Cur
rent
Yea
rR
esta
te2,
187
0-4
431
-108
01,
636
0-5
510
-1,6
760
1,23
30
-890
078
10
d≥
$50M
to$2
50M
All
18,1
873
-3,5
294
-2,2
144
12,4
442
-5,7
444
-30,
151
426
,622
4-1
1,12
43
8,91
03
No
Res
tate
men
t17
,048
2-3
,034
4-1
,827
412
,187
2-4
,861
4-2
7,43
84
24,4
044
-10,
262
38,
435
3
Res
tate
Prio
r5
Yrs
only
1,07
10
-530
1-2
881
252
0-8
191
-2,4
420
1,91
20
-709
042
10
Cur
rent
Yea
rR
esta
te69
035
0-9
90
50
-64
0-2
700
306
0-1
530
540
e≥
$25M
to$5
0M
All
1,23
60
-553
121
90
902
0-3
340
-7,4
661
6,91
21
-1,3
810
1,60
01
No
Res
tate
men
t1,
387
0-6
221
201
096
60
-421
0-7
,200
16,
578
1-1
,322
01,
523
1
Res
tate
Prio
r5
Yrs
only
-149
068
038
0-4
30
106
0-2
490
317
0-3
70
740
Cur
rent
Yea
rR
esta
te-2
01
0-2
00
-21
0-1
90
-17
017
0-2
20
20
f≥
$10M
to$2
5M
All
-263
0-1
,197
1-6
831
-2,1
440
-1,8
801
-7,3
311
6,13
51
-2,5
261
1,84
21
No
Res
tate
men
t-8
10
-1,1
911
-685
1-1
,957
0-1
,877
1-7
,177
15,
986
1-2
,491
11,
805
1
Res
tate
Prio
r5
Yrs
only
-187
00
03
0-1
830
40
-138
013
90
-32
036
0
Cur
rent
Yea
rR
esta
te4
0-6
0-1
0-3
0-7
0-1
60
100
-30
10
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 961
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e6.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byIn
dust
ryD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el1
of2
2004
Adv
ance
d(8
,14,
20)
Ret
urns
Pub
licTo
talA
sset
sTa
xA
fter
Cre
dits
Tax
Net
Inco
me
Est
imat
edIC
D
Wor
ldw
ide
Inco
me
(Par
tI
Ln
4)B
ook
Inco
me
(Par
tII
Ln
30A
)F
edTa
xE
xpen
se
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%A
ll30
,430
100
3,92
210
032
,544
,249
100
151,
405
100
523,
015
100
52,6
9810
056
8,01
010
051
5,42
110
019
1,67
010
0
Indu
stry
a.M
anuf
actu
ring
6,35
121
1,09
528
7,26
9,59
122
48,6
1532
232,
670
4411
,475
2225
5,82
845
282,
629
5560
,319
31
b.Fi
nanc
e7,
882
2686
122
7,32
1,84
422
21,4
8814
58,7
4011
2,47
65
61,6
2011
47,9
319
25,3
6713
c.In
form
atio
n1,
772
637
29
1,90
0,42
06
8,93
76
10,2
062
13,6
2826
-3,9
80-1
-3,5
44-1
11,0
256
d.U
tiliti
es/T
rans
p.97
63
174
41,
574,
761
56,
600
44,
658
12,
706
544
,940
82,
006
010
,861
6
e.A
llO
ther
13,4
5044
1,41
836
14,4
77,6
3344
65,7
6443
216,
741
4122
,414
4320
9,60
237
186,
399
3684
,097
44
a≥
$25B
orM
ore
All
150
011
83
22,3
89,6
1369
71,7
6847
321,
075
6138
,129
7235
0,84
062
329,
605
6487
,810
46
a.M
anuf
actu
ring
380
301
4,80
3,03
815
26,0
1817
162,
728
313,
913
717
0,16
630
216,
311
4226
,270
14
b.Fi
nanc
e30
015
05,
057,
784
169,
219
636
,173
772
81
36,9
227
27,7
295
11,2
736
c.In
form
atio
n15
0*
*1,
150,
614
43,
740
212
,429
213
,298
25-2
,331
0-2
,702
-14,
727
2
d.U
tiliti
es/T
rans
p.19
0*
*80
0,19
92
2,96
52
3,68
71
1,43
63
36,6
606
-446
06,
148
3
e.A
llO
ther
480
421
10,5
77,9
7833
29,8
2620
106,
058
2018
,754
3610
9,42
319
88,7
1217
39,3
9121
b≥
$2.5
Bto
$25B
All
810
349
713
5,78
1,52
318
40,3
7427
126,
457
2410
,041
1913
7,46
324
124,
763
2454
,945
29
a.M
anuf
actu
ring
214
113
84
1,50
5,11
15
13,0
449
50,7
3710
5,43
810
66,9
1612
54,1
8411
21,1
7311
b.Fi
nanc
e18
31
682
1,22
7,56
34
5,10
53
13,6
853
1,10
52
12,7
382
12,6
662
6,65
23
c.In
form
atio
n62
0*
*47
3,96
01
3,22
32
3,81
21
590
499
03,
012
13,
548
2
d.U
tiliti
es/T
rans
p.67
0*
*60
1,39
82
2,06
61
-793
01,
205
23,
255
1-6
010
2,41
41
e.A
llO
ther
284
119
05
1,97
3,49
16
16,9
3511
59,0
1611
2,23
54
54,0
5510
55,5
0211
21,1
5811
c≥
$250
Mto
$2.5
B
All
4,30
314
1,58
340
3,07
2,15
99
26,5
9918
64,6
7512
4,09
38
72,8
6713
55,1
2911
35,6
8019
a.M
anuf
actu
ring
921
338
710
691,
658
26,
107
417
,587
31,
985
418
,975
312
,751
28,
983
5
b.Fi
nanc
e99
63
270
768
9,70
72
4,67
73
10,2
932
523
114
,480
39,
692
25,
330
3
c.In
form
atio
n25
21
136
320
4,93
91
1,33
21
-4,4
79-1
265
1-1
,021
0-2
,793
-12,
180
1
d.U
tiliti
es/T
rans
p.15
61
702
137,
026
01,
129
11,
073
065
03,
845
12,
155
01,
729
1
e.A
llO
ther
1,97
87
721
181,
348,
829
413
,355
940
,201
81,
254
236
,588
633
,324
617
,458
9
d≥
$50M
to$2
50M
All
7,94
326
1,10
028
926,
136
38,
191
512
,142
230
81
9,51
52
9,34
72
8,84
05
a.M
anuf
actu
ring
1,66
35
348
919
1,61
11
2,37
82
2,93
01
119
01,
487
094
80
2,77
61
b.Fi
nanc
e2,
139
731
98
247,
127
11,
537
11,
123
035
058
40
848
01,
249
1
c.In
form
atio
n41
51
113
348
,131
036
50
-646
00
0-7
90
-71
030
60
d.U
tiliti
es/T
rans
p.21
41
221
24,4
700
280
050
70
00
739
066
00
381
0
e.A
llO
ther
3,51
212
299
841
4,79
61
3,63
12
8,22
82
154
06,
784
16,
963
14,
129
2
e≥
$25M
to$5
0M
All
5,43
618
302
819
1,02
51
2,22
71
824
010
30
-944
0-1
,006
02,
242
1
a.M
anuf
actu
ring
1,14
14
922
40,3
100
593
037
015
0-1
780
-266
060
90
b.Fi
nanc
e1,
508
597
252
,920
043
30
-768
078
0-2
,209
0-1
,728
041
00
c.In
form
atio
n33
61
301
11,7
080
140
0-1
080
00
-103
0-1
040
155
0
d.U
tiliti
es/T
rans
p.17
31
60
6,18
00
890
123
00
011
80
173
010
80
e.A
llO
ther
2,27
77
772
79,9
080
972
11,
540
09
01,
428
092
00
961
1
f≥
$10M
to$2
5M
All
11,7
8939
322
818
3,79
41
2,24
51
-2,1
580
240
-1,7
320
-2,4
170
2,15
31
a.M
anuf
actu
ring
2,37
38
102
337
,863
047
60
-1,3
500
40
-1,5
380
-1,2
980
509
0
b.Fi
nanc
e3,
025
1093
246
,742
051
70
-1,7
660
80
-894
0-1
,276
045
40
c.In
form
atio
n69
32
341
11,0
690
136
0-8
010
50
-946
0-8
870
109
0
d.U
tiliti
es/T
rans
p.34
71
40
5,48
90
710
620
00
323
065
082
0
e.A
llO
ther
5,35
118
892
82,6
320
1,04
51
1,69
80
70
1,32
40
979
01,
000
1
COMMENTARY / SPECIAL REPORT
962 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e6.
U.S
.C
orpo
rati
ons
Subj
ect
to20
04Sc
hedu
leM
-3W
ith
Rec
onci
labl
eD
ata
byIn
dust
ryD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el2
of2
2004
Adv
ance
d(8
,14,
20)
Pre
tax
Boo
kP
reta
xTe
mp
Dif
fP
reta
xP
erm
Dif
fTa
xIn
com
e(P
art
IIL
n30
D)
Tota
lP
reta
xD
iff
Neg
ativ
eP
reta
xTe
mp
Dif
fP
osit
ive
Pre
tax
Tem
pD
iff
Neg
ativ
eP
reta
xP
erm
Dif
fP
osit
ive
Pre
tax
Per
mD
iff
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%Su
mC
ol%
Sum
Col
%A
ll70
7,09
210
0-8
1,58
710
0-5
0,13
110
057
5,37
410
0-1
31,7
1810
0-6
74,4
5110
059
2,86
410
0-3
27,9
7410
027
7,84
310
0
Indu
stry
a.M
anuf
actu
ring
342,
948
49-2
9,09
336
-69,
716
139
244,
139
42-9
8,81
075
-249
,879
3722
0,78
537
-187
,704
5711
7,98
742
b.Fi
nanc
e73
,298
10-4
,897
6-7
,371
1561
,031
11-1
2,26
79
-71,
979
1167
,082
11-2
6,94
68
19,5
757
c.In
form
atio
n7,
481
1-4
,531
620
,879
-42
23,8
294
16,3
49-1
2-7
9,46
712
74,9
3613
-26,
549
847
,428
17
d.U
tiliti
es/T
rans
p.12
,868
2-3
,093
4-2
,415
57,
359
1-5
,508
4-7
7,03
811
73,9
4512
-19,
804
617
,389
6
e.A
llO
ther
270,
496
38-3
9,97
349
8,49
2-1
723
9,01
642
-31,
481
24-1
96,0
8829
156,
115
26-6
6,97
120
75,4
6427
a≥
$25
Bor
Mor
e
All
417,
415
59-2
8,75
535
-29,
472
5935
9,18
862
-58,
227
44-3
52,8
6552
324,
111
55-1
82,7
5356
153,
281
55
a.M
anuf
actu
ring
242,
581
34-1
8,79
723
-57,
143
114
166,
641
29-7
5,94
058
-158
,593
2413
9,79
524
-125
,719
3868
,576
25
b.Fi
nanc
e39
,003
61,
011
-1-3
,121
636
,893
6-2
,109
2-2
7,70
54
28,7
175
-10,
004
36,
883
2
c.In
form
atio
n2,
026
0-2
,676
326
,377
-53
25,7
274
23,7
01-1
8-3
8,54
36
35,8
666
-7,8
742
34,2
5112
d.U
tiliti
es/T
rans
p.5,
703
14,
324
-5-4
,903
105,
123
1-5
790
-38,
872
643
,195
7-9
,515
34,
612
2
e.A
llO
ther
128,
103
18-1
2,61
615
9,31
7-1
912
4,80
422
-3,2
993
-89,
153
1376
,537
13-2
9,64
09
38,9
5814
b≥
$2.5
Bto
$25
B
All
179,
708
25-3
4,34
042
-8,9
6118
136,
407
24-4
3,30
133
-183
,496
2714
9,15
625
-87,
404
2778
,443
28
a.M
anuf
actu
ring
75,3
5711
-8,9
8611
-10,
196
2056
,175
10-1
9,18
215
-53,
775
844
,789
8-4
0,95
412
30,7
5811
b.Fi
nanc
e19
,318
3-3
,002
4-1
,527
314
,788
3-4
,529
3-1
9,43
63
16,4
343
-7,6
632
6,13
62
c.In
form
atio
n6,
560
1-1
,730
2-9
622
3,86
81
-2,6
922
-24,
585
422
,855
4-1
0,19
53
9,23
33
d.U
tiliti
es/T
rans
p.1,
813
0-3
,757
52,
352
-540
80
-1,4
051
-27,
041
423
,284
4-8
,908
311
,260
4
e.A
llO
ther
76,6
6011
-16,
865
211,
372
-361
,167
11-1
5,49
312
-58,
659
941
,794
7-1
9,68
46
21,0
578
c≥
$250
Mto
$2.5
B
All
90,8
0913
-13,
212
16-9
,020
1868
,577
12-2
2,23
217
-93,
141
1479
,929
13-4
2,78
713
33,7
6712
a.M
anuf
actu
ring
21,7
343
-993
1-1
,165
219
,576
3-2
,158
2-2
5,70
34
24,7
114
-16,
041
514
,876
5
b.Fi
nanc
e15
,022
2-2
,691
3-1
,673
310
,658
2-4
,364
3-1
4,89
12
12,2
002
-5,5
202
3,84
71
c.In
form
atio
n-6
130
269
0-3
,870
8-4
,214
-1-3
,602
3-1
1,55
62
11,8
252
-6,7
442
2,87
31
d.U
tiliti
es/T
rans
p.3,
884
1-2
,859
411
30
1,13
80
-2,7
462
-9,1
541
6,29
51
-1,1
490
1,26
20
e.A
llO
ther
50,7
827
-6,9
389
-2,4
245
41,4
207
-9,3
627
-31,
836
524
,898
4-1
3,33
24
10,9
094
d≥
$50
Mto
$250
M
All
18,1
873
-3,5
294
-2,2
144
12,4
442
-5,7
444
-30,
151
426
,622
4-1
1,12
43
8,91
03
a.M
anuf
actu
ring
3,72
31
500
-724
13,
049
1-6
741
-8,3
271
8,37
81
-3,8
241
3,10
01
b.Fi
nanc
e2,
097
0-2
940
-650
11,
152
0-9
441
-5,6
391
5,34
51
-2,2
661
1,61
51
c.In
form
atio
n23
50
-115
0-7
672
-647
0-8
821
-3,5
871
3,47
21
-1,5
090
742
0
d.U
tiliti
es/T
rans
p.1,
040
0-4
961
-37
050
70
-533
0-1
,305
080
90
-176
013
90
e.A
llO
ther
11,0
922
-2,6
743
-35
08,
382
1-2
,710
2-1
1,29
32
8,61
91
-3,3
501
3,31
51
e≥
$25
Mto
$50
M
All
1,23
60
-553
121
90
902
0-3
340
-7,4
661
6,91
21
-1,3
810
1,60
01
a.M
anuf
actu
ring
343
0-2
280
-68
047
0-2
960
-1,8
610
1,63
20
-422
035
40
b.Fi
nanc
e-1
,318
036
40
255
-1-6
990
619
0-2
,056
02,
421
0-2
790
534
0
c.In
form
atio
n50
0-2
180
600
-107
0-1
580
-620
040
20
-106
016
60
d.U
tiliti
es/T
rans
p.28
10
-190
030
012
10
-160
0-4
180
228
0-3
10
610
e.A
llO
ther
1,88
10
-281
0-5
80
1,54
10
-339
0-2
,510
02,
229
0-5
420
484
0
f≥
$10
Mto
$25
M
All
-263
0-1
,197
1-6
831
-2,1
440
-1,8
801
-7,3
311
6,13
51
-2,5
261
1,84
21
a.M
anuf
actu
ring
-789
0-1
400
-420
1-1
,349
0-5
600
-1,6
200
1,48
00
-743
032
30
b.Fi
nanc
e-8
220
-286
0-6
541
-1,7
620
-939
1-2
,252
01,
966
0-1
,214
056
00
c.In
form
atio
n-7
780
-60
041
0-7
960
-19
0-5
760
517
0-1
210
162
0
d.U
tiliti
es/T
rans
p.14
70
-115
030
062
0-8
50
-248
013
30
-25
055
0
e.A
llO
ther
1,97
90
-597
131
9-1
1,70
10
-278
0-2
,636
02,
039
0-4
220
742
0
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 963
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e7.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
aD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el1
of3
Pop
ulat
ion
Ove
rvie
w
Ret
urns
30,4
30
Tota
lAss
ets
32,5
44,2
49.1
Tax
Les
sC
redi
ts15
1,40
4.7
Tax
Net
Inco
me
523,
014.
8
Est
imat
edIC
D52
,698
.4
Oth
erSO
IA
djus
tmen
ts-3
38.7
Part
IIL
ine
30C
olA
575,
374.
5
Tax
Exe
mpt
Inte
rest
10,7
85.7
Par
tI
FIN
AN
CIA
LST
AT
EM
EN
TD
AT
AF
req
Inco
me
Neg
Pos
%B
ook
Inco
me
Neg
Pos
4W
orld
wid
eco
nsol
idat
edne
tin
com
e(l
oss)
25,6
2656
8,00
9.7
-160
,726
.072
8,73
5.7
110.
2%-3
1.2%
141.
4%
5In
com
e(lo
ss)
from
noni
nclu
dibl
efo
reig
nen
titie
s3,
699
-204
,469
.2-3
10,1
15.5
105,
646.
3-3
9.7%
-60.
2%20
.5%
6In
com
e(lo
ss)
from
noni
nclu
dibl
eU
.S.
entit
ies
1,63
2-8
6,53
3.8
-132
,194
.245
,660
.3-1
6.8%
-25.
6%8.
9%
7In
com
e(lo
ss)
ofot
her
incl
udib
leco
rpor
atio
ns40
63,
784.
8-2
,555
.76,
340.
50.
7%-0
.5%
1.2%
8A
djus
tco
nsol
idat
ion
elim
inat
ions
(bec
ause
oflin
es5-
7)1,
736
184,
100.
6-1
5,79
1.8
199,
892.
435
.7%
-3.1
%38
.8%
9A
djus
tbo
okye
arto
tax
year
425
6,13
5.5
-1,8
60.9
7,99
6.4
1.2%
-0.4
%1.
6%
10O
ther
adju
stm
ents
1,30
633
,722
.5-6
1,67
8.7
95,4
01.3
6.5%
-12.
0%18
.5%
**E
nter
edon
line
11on
ly(B
ooks
and
Rec
ords
)4,
734
11,9
15.4
-14,
111.
526
,026
.92.
3%-2
.7%
5.0%
**SU
BT
OTA
L.
516,
665.
610
0.2%
**A
mou
ntto
Rec
onci
le.
-1,2
43.1
-0.2
%
11N
etin
com
epe
rin
com
est
atem
ent
ofin
clud
ible
corp
orat
ions
30,4
3051
5,42
2.5
-195
,388
.471
0,81
0.9
100.
0%
Inco
me
Neg
Pos
%P
reta
xB
oook
Inco
me
Neg
Pos
**A
mou
ntto
Rec
onci
le.
-1.3
-0.0
%
**N
etin
com
epe
rPa
rtII
Lin
e30
Col
umn
A.
515,
421.
272
.9%
**R
ever
seFe
dera
lta
xex
pens
e.
191,
670.
427
.1%
**Pr
etax
book
Inco
me
.70
7,09
1.6
100.
0%
**Te
mpo
rary
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-8
1,58
6.6
-674
,450
.659
2,86
4.0
-11.
5%-9
5.4%
83.8
%
**Pe
rman
ent
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-5
0,13
0.9
-327
,973
.927
7,84
2.9
-7.1
%-4
6.4%
39.3
%
**N
etta
xin
com
epe
rPa
rtII
Lin
e30
Col
umn
D.
575,
374.
581
.4%
**SO
Ire
mov
edIC
D.
-52,
698.
4-7
.5%
**O
ther
SOI
adju
stm
ents
.33
8.7
0.0%
**Ta
xne
tin
com
ere
port
edby
SOI
.52
3,01
4.8
74.0
%
COMMENTARY / SPECIAL REPORT
964 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e7.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
aD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el2
of3
Par
tII
INC
OM
EIT
EM
SF
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
Inco
me
(los
s)fr
omeq
uity
met
hod
fore
ign
corp
orat
ions
881
5,53
1.7
-4,5
29.7
-5,3
69.1
.-9
,898
.8-1
.4%
-4,7
52.1
222.
4-7
,268
.41,
899.
3
02G
ross
fore
ign
divi
dend
sno
tpr
evio
usly
taxe
d1,
072
8,08
0.4
3,75
6.2
11,4
69.6
14,6
14.3
15,2
25.8
2.2%
-2,3
02.3
6,05
8.5
-7,5
15.1
18,9
84.7
03Su
bpar
tF,
QE
F,an
dsi
mila
rin
com
ein
clus
ions
1,06
0.
8,54
9.6
25,5
50.1
9,06
3.3
34,0
99.7
4.8%
-20.
08,
569.
6-3
5.9
25,5
86.0
04Se
ctio
n78
gros
s-up
855
.92
5.3
26,0
02.9
8,83
8.0
26,9
28.2
3.8%
0.0
925.
3-0
.326
,003
.2
05G
ross
fore
ign
dist
ribu
tions
prev
ious
lyta
xed
214
2,54
6.1
-5,0
65.8
-12,
577.
7-1
93.4
-17,
643.
5-2
.5%
-5,1
55.1
89.3
-12,
740.
316
2.6
06In
com
e(l
oss)
from
equi
tym
etho
dU
.S.
corp
orat
ions
1,69
431
,806
.0-9
,743
.9-3
2,43
2.8
.-4
2,17
6.7
-6.0
%-1
2,05
4.1
2,31
0.2
-37,
974.
25,
541.
5
07U
.S.
divi
dend
sno
tel
imin
ated
inta
xco
nsol
idat
ion
5,38
226
,293
.73,
392.
813
,666
.217
,141
.617
,058
.92.
4%-3
,224
.16,
616.
9-2
5,05
8.1
38,7
24.3
08M
inor
ityin
tere
stfo
rin
clud
ible
corp
orat
ions
560
-335
.464
.363
3.0
.69
7.3
0.1%
-93.
015
7.4
-327
.096
0.0
09In
com
e(l
oss)
from
U.S
.pa
rtne
rshi
ps6,
151
20,1
57.5
10,8
74.7
7,98
6.3
29,6
70.3
18,8
60.9
2.7%
-23,
108.
433
,983
.0-3
,250
.011
,236
.3
10In
com
e(l
oss)
from
fore
ign
part
ners
hips
532
1,49
3.4
1,63
6.2
-92.
92,
770.
21,
543.
30.
2%-2
,398
.24,
034.
4-7
50.5
657.
5
11In
com
e(l
oss)
from
othe
rpa
ss-t
hrou
ghen
titie
s93
458
2.2
-1,5
00.7
-369
.0-1
,127
.7-1
,869
.7-0
.3%
-2,2
39.9
739.
1-5
93.5
224.
5
12It
ems
rela
ting
tore
port
able
tran
sact
ions
400
2,38
7.9
-35,
650.
2-9
,186
.4-6
,858
.1-4
4,83
6.6
-6.3
%-3
6,70
5.2
1,05
5.0
-10,
173.
198
6.7
13In
tere
stin
com
e17
,292
296,
019.
9-3
,047
.4-1
2,00
6.0
247,
837.
1-1
5,05
3.4
-2.1
%-1
1,26
7.2
8,21
9.8
-12,
979.
797
3.7
14To
tal
accr
ual
toca
shad
just
men
t95
810
0.4
163.
95.
4-1
,363
.916
9.3
0.0%
-302
.746
6.6
-9.9
15.3
15H
edgi
ngtr
ansa
ctio
ns70
3-6
,578
.1-2
41.5
-203
.1-5
,127
.4-4
44.6
-0.1
%-7
,798
.97,
557.
4-3
94.1
191.
0
16M
ark-
to-m
arke
tin
com
e(l
oss)
857
7,25
0.3
842.
4-8
58.9
-2,7
49.4
-16.
5-0
.0%
-4,6
15.2
5,45
7.6
-1,0
08.3
149.
4
17In
vent
ory
valu
atio
nad
just
men
ts10
,512
-1,7
63,8
41.3
46,8
50.5
-1,2
39.4
-1,7
61,6
68.4
45,6
11.1
6.5%
-15,
243.
062
,093
.4-3
,600
.72,
361.
2
18Sa
leve
rsus
leas
e(f
orse
llers
and/
orle
ssor
s)32
84,
677.
431
,073
.2-1
,749
.615
,425
.829
,323
.74.
1%-9
47.5
32,0
20.7
-1,7
69.7
20.2
19Se
ctio
n48
1(a)
adju
stm
ents
2,08
1.
-540
.428
.6-3
78.6
-511
.9-0
.1%
-4,6
26.0
4,08
5.6
-35.
063
.6
20U
near
ned/
defe
rred
reve
nue
3,44
738
,519
.333
0.5
95.3
37,1
41.0
425.
80.
1%-6
,973
.67,
304.
2-1
61.4
256.
7
21In
com
ere
cogn
ition
from
long
-ter
mco
ntra
cts
402
12,7
79.9
-22.
420
.611
,477
.4-1
.8-0
.0%
-536
.051
3.6
-1.8
22.4
22O
rigi
nal
issu
edi
scou
ntan
dot
her
impu
ted
inte
rest
442
896.
812
4.4
-59.
574
1.1
64.9
0.0%
-2,3
79.6
2,50
4.0
-183
.212
3.6
23a
Boo
kdi
spos
itio
nof
asse
tsot
her
than
inve
ntor
y14
,162
20,7
18.9
-47,
936.
2-7
,664
.6.
-55,
600.
8-7
.9%
-60,
937.
613
,001
.5-9
,846
.12,
181.
4
23b
Gro
ssca
pita
lga
ins
Sch.
D,
excl
udin
gfl
ow-t
hrou
gh4,
261
.46
,533
.79,
698.
423
,973
.056
,232
.08.
0%-4
70.3
47,0
03.9
-427
.610
,126
.0
23c
Gro
ssca
pita
llo
ssSc
h.D
,ex
clud
ing
flow
-thr
ough
2,10
8.
-14,
335.
5-1
,603
.5-6
,401
.3-1
5,93
9.1
-2.3
%-1
5,18
6.5
850.
9-2
,355
.675
2.0
23d
Net
gain
/loss
repo
rted
onFo
rm47
97,
line
1715
,121
.25
,250
.51,
549.
69,
182.
526
,800
.13.
8%-1
5,42
4.0
40,6
74.5
-598
.72,
148.
3
23e
Aba
ndon
men
tlo
sses
740
.-2
,757
.7-4
34.0
-1,5
24.0
-3,1
91.7
-0.5
%-3
,193
.143
5.4
-455
.521
.5
23f
Wor
thle
ssst
ock
loss
es23
9.
-1,1
69.8
-5,6
64.4
-4,8
97.0
-6,8
34.2
-1.0
%-1
,195
.826
.0-5
,668
.44.
0
23g
Oth
erdi
spos
ition
sex
clud
ing
inve
ntor
y2,
140
.2,
942.
964
2.2
2,01
5.9
3,58
5.1
0.5%
-729
.63,
672.
5-6
8.3
710.
5
24D
isal
low
edca
pita
llo
ssin
exce
ssof
capi
tal
gain
s1,
575
.13
,612
.33,
507.
67,
074.
417
,119
.92.
4%-5
6.1
13,6
68.3
-93.
13,
600.
7
25U
tiliz
atio
nof
capi
tal
loss
carr
yfor
war
d1,
388
.-5
,746
.5-2
,521
.4-3
,155
.4-8
,267
.8-1
.2%
-5,7
83.2
36.7
-2,5
21.5
0.1
26O
ther
inco
me
(los
s)it
ems
wit
hdi
ffer
ence
s14
,497
1,01
5,96
0.7
-58,
383.
5-5
8,50
8.3
1,22
0,26
5.9
-116
,891
.9-1
6.5%
-107
,092
.248
,708
.7-8
4,29
1.2
25,7
82.9
**SU
BT
OTA
L.
-274
,952
.56,
252.
1-5
1,68
5.1
-138
,213
.0-4
5,43
2.9
-6.4
%-3
56,8
10.5
363,
062.
6-2
32,1
56.2
180,
471.
2
**A
mou
ntto
Rec
onci
le.
-6,1
87.5
504.
9-9
82.7
-166
,826
.7-4
77.8
-0.1
%-1
1.6
516.
5-1
,055
.372
.6
27To
tal
inco
me
item
s(c
ombi
nelin
es1
thru
26)
27,5
84-2
81,1
40.0
6,75
7.0
-52,
667.
7-3
05,0
39.8
-45,
910.
7-6
.5%
-356
,822
.136
3,57
9.1
-233
,211
.518
0,54
3.8
28To
tal
expe
nse
item
s(f
rom
Part
III
line
36)
29,7
12-1
,210
,065
.5-8
0,83
6.9
186,
738.
5-1
,162
,577
.4
**E
xpen
sebe
fore
Fede
ral
tax
expe
nse
..
..
.-8
5,76
8.9
-12.
1%-3
17,1
80.6
229,
258.
7-9
4,58
5.8
96,7
38.8
29O
ther
item
sw
ithno
diff
eren
ces
17,8
571,
685,
039.
8.
.1,
684,
843.
3
**SU
BT
OTA
L.
193,
834.
2-7
4,07
9.9
134,
070.
821
7,22
6.2
**A
mou
ntto
Rec
onci
le.
321,
587.
0-4
21.8
383.
735
8,14
8.3
-38.
1-0
.0%
-447
.926
.2-1
76.7
560.
4
30R
econ
cilia
tion
tota
ls(c
ombi
nelin
es27
-29)
30,4
3051
5,42
1.2
-74,
501.
613
4,45
4.5
575,
374.
5
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.19
1,67
0.4
-7,0
85.0
-184
,585
.4.
>>P
reta
xbo
okin
com
ean
dM
-3di
ffer
ence
s.
707,
091.
6-8
1,58
6.6
-50,
130.
957
5,37
4.5
-131
,717
.5-1
8.6%
-674
,450
.659
2,86
4.0
-327
,973
.927
7,84
2.9
>>
Per
cent
ofP
reta
xbo
ok10
0.0%
-11.
5%-7
.1%
81.4
%-1
8.6%
-95.
4%83
.8%
-46.
4%39
.3%
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 965
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e7.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
aD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el3
of3
Par
tII
IE
XP
EN
SEIT
EM
S(s
ign
mat
ches
Par
tII
)F
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
U.S
.cu
rren
tin
com
eta
xex
pens
e21
,819
-74,
494.
56,
743.
717
0,64
4.9
.17
7,38
8.7
25.1
%-5
22.2
7,26
6.0
-15,
952.
118
6,59
7.0
02U
.S.
defe
rred
inco
me
tax
expe
nse
9,70
1-7
,934
.434
1.2
13,9
40.5
.14
,281
.72.
0%-3
,025
.23,
366.
4-2
9,13
8.6
43,0
79.1
03St
ate
and
loca
lcu
rren
tin
com
eta
xex
pens
e16
,855
-10,
013.
098
6.2
-649
.0-9
,934
.433
7.1
0.0%
-4,2
17.0
5,20
3.2
-2,8
78.1
2,22
9.1
04St
ate
and
loca
lde
ferr
edin
com
eta
xex
pens
e4,
967
-144
.5-4
05.7
42.9
.-3
62.8
-0.1
%-2
,942
.52,
536.
8-1
,394
.01,
436.
9
05Fo
reig
ncu
rren
tin
com
eta
xex
pens
e(o
ther
than
WH
)1,
342
-3,2
91.2
620.
414
,967
.8-2
72.2
15,5
88.2
2.2%
-224
.684
5.0
-803
.515
,771
.3
06Fo
reig
nde
ferr
edin
com
eta
xex
pens
e28
1-1
03.4
-107
.919
0.3
.82
.40.
0%-2
34.3
126.
4-7
53.8
944.
1
07Fo
reig
nw
ithho
ldin
gta
xes
924
-661
.2-1
58.3
2,47
4.8
-200
.52,
316.
50.
3%-2
20.8
62.5
-209
.32,
684.
1
08In
cent
ive
stoc
kop
tions
1,44
8.
-379
.1-5
,924
.7-3
,117
.8-6
,303
.8-0
.9%
-764
.138
5.0
-6,1
61.4
236.
7
09N
onqu
alif
ied
stoc
kop
tion
s3,
078
-1,9
48.4
-1,6
92.0
-38,
737.
9-1
7,04
5.4
-40,
430.
0-5
.7%
-4,8
23.6
3,13
1.6
-39,
061.
932
4.0
10O
ther
equi
ty-b
ased
com
pens
atio
n1,
921
-5,2
51.7
1,69
1.0
-4,5
44.1
-6,6
31.7
-2,8
53.1
-0.4
%-2
,138
.23,
829.
2-5
,306
.776
2.6
11M
eals
and
ente
rtai
nmen
t25
,384
-6,5
85.8
17.1
5,63
7.0
-3,7
63.9
5,65
4.1
0.8%
-14.
431
.5-2
1.5
5,65
8.5
12Fi
nes
and
pena
lties
8,03
7-9
48.6
75.4
2,08
4.4
-93.
82,
159.
80.
3%-1
.276
.6-3
1.0
2,11
5.4
13Pu
nitiv
eda
mag
es68
-54.
899
1.4
26.3
-4.4
1,01
7.7
0.1%
-7.6
999.
00.
026
.3
14Pa
rach
ute
paym
ents
47-2
0.1
6.7
103.
6-5
.711
0.3
0.0%
-6.6
13.3
-9.2
112.
8
15C
ompe
nsat
ion
with
sect
ion
162(
m)
limita
tion
776
-3,4
33.8
37.9
1,18
7.3
-3,6
07.4
1,22
5.2
0.2%
-22.
460
.3-3
0.3
1,21
7.6
16P
ensi
onan
dpr
ofit
-sha
ring
10,1
89-2
2,28
4.8
-16,
505.
2-1
,466
.8-2
7,56
0.3
-17,
972.
0-2
.5%
-26,
725.
410
,220
.1-1
,631
.016
4.2
17O
ther
post
-ret
irem
ent
bene
fits
7,47
3-1
2,61
9.7
3,59
4.7
-1,8
08.3
-10,
406.
01,
786.
40.
3%-4
,519
.88,
114.
5-1
,828
.620
.3
18D
efer
red
com
pens
atio
n5,
925
-23,
100.
94,
135.
5-1
89.5
-21,
119.
63,
946.
00.
6%-3
,138
.27,
273.
8-4
70.5
281.
0
19C
hari
tabl
eco
ntri
butio
nof
cash
and
tang
ible
prop
12,6
45-3
,112
.211
0.0
-999
.8-3
,566
.5-8
89.7
-0.1
%-2
71.2
381.
2-1
,066
.967
.2
20C
hari
tabl
eco
ntri
butio
nof
inta
ngib
lepr
oper
ty31
6-1
37.5
-48.
4-7
8.1
-170
.3-1
26.5
-0.0
%-5
3.4
5.0
-80.
22.
1
21C
hari
tabl
eco
ntri
butio
nlim
itatio
n8,
219
.1,
150.
852
6.6
725.
51,
677.
40.
2%-7
7.0
1,22
7.7
-2.8
529.
4
22C
hari
tabl
eco
ntri
butio
nca
rryf
orw
ard
used
2,20
4.
-667
.0-2
01.8
-234
.3-8
68.8
-0.1
%-6
73.4
6.5
-202
.00.
3
23C
urre
ntac
q./r
eorg
.in
vest
men
tba
nkin
gfe
es13
0-5
2.7
-77.
123
.9-6
8.0
-53.
2-0
.0%
-125
.047
.8-8
0.5
104.
5
24C
urre
ntac
q./r
eorg
.le
gal/a
ccou
ntin
gfe
es50
1-5
11.6
97.5
375.
8-3
18.1
473.
20.
1%-1
39.4
236.
9-2
1.5
397.
2
25C
urre
ntac
q./r
eorg
.ot
her
cost
s53
6-1
,059
.241
4.9
191.
4-6
91.8
606.
30.
1%-7
34.4
1,14
9.3
-415
.060
6.4
26A
mor
tizat
ion/
impa
irm
ent
ofgo
odw
ill5,
414
-9,0
42.5
-11,
107.
49,
179.
0-8
,708
.4-1
,928
.3-0
.3%
-15,
501.
94,
394.
6-1
,270
.410
,449
.5
27A
mor
tizat
ion
ofac
q./r
eorg
.an
dst
artu
pco
sts
3,98
5-1
,175
.9-4
50.9
181.
4-1
,649
.6-2
69.5
-0.0
%-1
,814
.51,
363.
6-9
3.0
274.
4
28O
ther
amor
tiza
tion
orim
pair
men
tw
rite
-off
s12
,630
-33,
365.
531
,065
.819
,799
.2-2
4,25
9.1
50,8
65.0
7.2%
-18,
026.
249
,092
.0-2
,409
.322
,208
.5
29Se
c19
8en
viro
nmen
tal
rem
edia
tion
cost
s19
7-1
83.5
379.
1-0
.6-2
02.4
378.
50.
1%-2
88.8
667.
9-1
.30.
7
30D
eple
tion
857
-4,1
93.3
2,09
8.6
-2,1
23.3
-4,5
26.2
-24.
7-0
.0%
-2,7
29.3
4,82
8.0
-2,2
16.7
93.3
31D
epre
ciat
ion
26,4
44-1
12,5
74.6
-113
,162
.338
4.4
-164
,418
.0-1
12,7
77.9
-15.
9%-1
30,4
39.3
17,2
77.0
-191
.757
6.1
32B
adde
btex
pens
e18
,403
-25,
844.
7-6
,903
.4-7
31.1
-28,
487.
6-7
,634
.5-1
.1%
-16,
813.
59,
910.
1-8
83.0
151.
9
33C
orpo
rate
owne
dlif
ein
sura
nce
prem
ium
s5,
731
-126
.2-1
8.5
-356
.6-1
56.8
-375
.1-0
.1%
-106
.788
.2-8
14.7
458.
1
34Pu
rcha
seve
rsus
leas
e48
1-6
84.4
-634
.0-8
2.3
-1,2
86.5
-716
.3-0
.1%
-1,2
26.7
592.
7-8
2.7
0.4
35O
ther
expe
nse/
dedc
tnite
ms
with
diff
eren
ces
24,8
14-8
45,2
30.1
17,0
12.0
2,46
2.7
-820
,096
.019
,474
.72.
8%-7
7,94
4.5
94,9
56.6
-24,
148.
326
,611
.0
**SU
BT
OTA
L.
-1,2
10,1
84.8
-80,
747.
418
6,53
0.4
-1,1
61,8
77.3
105,
783.
115
.0%
-320
,513
.423
9,76
6.1
-139
,661
.632
6,19
2.1
**A
mou
ntto
Rec
onci
le.
-2,8
90.8
-89.
620
7.9
-4,3
10.4
118.
40.
0%-2
14.6
125.
0-1
4.9
222.
8
36To
tal
expe
nse
item
s(c
ombi
nelin
es1-
35)
29,7
09-1
,213
,075
.6-8
0,83
6.9
186,
738.
4-1
,166
,187
.710
5,90
1.5
15.0
%-3
20,7
28.0
239,
891.
1-1
39,6
76.5
326,
414.
9
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.82
,428
.9-7
,085
.0-1
84,5
85.4
.-1
91,6
70.4
-27.
1%3,
547.
4-1
0,63
2.4
45,0
90.7
-229
,676
.1
>>
Tota
lex
pens
eite
ms
befo
reFe
dera
lta
xex
pens
e.
-1,1
30,6
46.7
-87,
921.
92,
153.
0-1
,166
,187
.7-8
5,76
8.9
-12.
1%-3
17,1
80.6
229,
258.
7-9
4,58
5.8
96,7
38.8
COMMENTARY / SPECIAL REPORT
966 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e8.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:SE
C10
-KF
inan
cial
Stat
emen
tD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el1
of3
Pop
ulat
ion
Ove
rvie
w
Ret
urns
4,19
5
Tota
lAss
ets
22,2
87,3
27.5
Tax
Les
sC
redi
ts10
5,53
2.6
Tax
Net
Inco
me
394,
570.
1
Est
imat
edIC
D48
,046
.4
Oth
erSO
IA
djus
tmen
ts-2
54.6
Part
IIL
ine
30C
olA
442,
361.
9
Tax
Exe
mpt
Inte
rest
6,78
4.3
Par
tI
FIN
AN
CIA
LST
AT
EM
EN
TD
AT
AF
req
Inco
me
Neg
Pos
%B
ook
Inco
me
Neg
Pos
4W
orld
wid
eco
nsol
idat
edne
tin
com
e(l
oss)
4,16
744
0,91
2.2
-107
,320
.954
8,23
3.1
106.
5%-2
5.9%
132.
4%
5In
com
e(lo
ss)
from
noni
nclu
dibl
efo
reig
nen
titie
s1,
806
-194
,944
.9-2
91,2
84.4
96,3
39.5
-47.
1%-7
0.3%
23.3
%
6In
com
e(lo
ss)
from
noni
nclu
dibl
eU
.S.
entit
ies
786
-78,
759.
1-1
14,4
17.4
35,6
58.3
-19.
0%-2
7.6%
8.6%
7In
com
e(lo
ss)
ofot
her
incl
udib
leco
rpor
atio
ns12
42,
035.
7-1
,609
.83,
645.
40.
5%-0
.4%
0.9%
8A
djus
tco
nsol
idat
ion
elim
inat
ions
(bec
ause
oflin
es5-
7)85
817
7,38
2.9
-14,
217.
919
1,60
0.9
42.8
%-3
.4%
46.3
%
9A
djus
tbo
okye
arto
tax
year
160
5,39
3.5
-1,6
64.1
7,05
7.5
1.3%
-0.4
%1.
7%
10O
ther
adju
stm
ents
607
63,2
87.1
-14,
191.
177
,478
.215
.3%
-3.4
%18
.7%
**E
nter
edon
line
11on
ly(B
ooks
and
Rec
ords
)27
46.3
-188
.823
5.1
0.0%
-0.0
%0.
1%
**SU
BT
OTA
L.
415,
353.
610
0.3%
**A
mou
ntto
Rec
onci
le.
-1,2
28.8
-0.3
%
11N
etin
com
epe
rin
com
est
atem
ent
ofin
clud
ible
corp
orat
ions
4,19
541
4,12
4.8
-109
,509
.452
3,63
4.3
100.
0%
%P
reta
xB
ook
Inco
me
Neg
Pos
**A
mou
ntto
Rec
onci
le.
-0.6
-0.0
%
**N
etin
com
epe
rPa
rtII
Lin
e30
Col
umn
A.
414,
124.
274
.7%
**R
ever
seFe
dera
lta
xex
pens
e.
140,
256.
125
.3%
**Pr
etax
book
Inco
me
.55
4,38
0.3
100.
0%
**Te
mpo
rary
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-7
7,51
2.0
-440
,975
.336
3,46
3.4
-14.
0%-7
9.5%
65.6
%
**Pe
rman
ent
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-3
4,50
6.9
-252
,166
.121
7,65
9.1
-6.2
%-4
5.5%
39.3
%
**N
etta
xin
com
epe
rPa
rtII
Lin
e30
Col
umn
D.
442,
361.
979
.8%
**SO
Ire
mov
edIC
D.
-48,
046.
4-8
.7%
**O
ther
SOI
adju
stm
ents
.25
4.6
0.0%
**Ta
xne
tin
com
ere
port
edby
SOI
.39
4,57
0.1
71.2
%
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 967
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e8.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:SE
C10
-KF
inan
cial
Stat
emen
tD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el2
of3
Par
tII
INC
OM
EIT
EM
SF
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
Inco
me
(los
s)fr
omeq
uity
met
hod
fore
ign
corp
orat
ions
332
4,69
4.4
-4,2
22.9
-4,0
05.9
.-8
,228
.8-1
.5%
-4,3
63.3
140.
4-5
,494
.81,
489.
0
02G
ross
fore
ign
divi
dend
sno
tpr
evio
usly
taxe
d45
86,
059.
94,
052.
49,
767.
311
,959
.313
,819
.72.
5%-1
,381
.75,
434.
1-6
,680
.016
,447
.3
03Su
bpar
tF,
QE
F,an
dsi
mila
rin
com
ein
clus
ions
650
.7,
587.
523
,343
.37,
602.
630
,930
.85.
6%-6
.27,
593.
7-3
3.6
23,3
76.9
04Se
ctio
n78
gros
s-up
458
.72
3.7
24,1
40.8
7,65
0.7
24,8
64.5
4.5%
0.0
723.
7-0
.324
,141
.2
05G
ross
fore
ign
dist
ribu
tions
prev
ious
lyta
xed
131
2,39
3.5
-4,9
95.2
-12,
345.
8-1
23.3
-17,
341.
0-3
.1%
-4,9
96.5
1.3
-12,
470.
612
4.8
06In
com
e(l
oss)
from
equi
tym
etho
dU
.S.
corp
orat
ions
486
24,8
63.4
-7,7
37.9
-27,
135.
2.
-34,
873.
1-6
.3%
-9,2
05.1
1,46
7.2
-31,
973.
34,
838.
1
07U
.S.
divi
dend
sno
tel
imin
ated
inta
xco
nsol
idat
ion
1,02
66,
811.
12,
159.
323
,912
.610
,826
.626
,071
.94.
7%-2
,403
.64,
562.
9-9
,429
.333
,341
.8
08M
inor
ityin
tere
stfo
rin
clud
ible
corp
orat
ions
164
-206
.028
.211
4.6
.14
2.8
0.0%
-73.
610
1.7
-293
.740
8.3
09In
com
e(l
oss)
from
U.S
.pa
rtne
rshi
ps1,
481
9,65
3.7
8,22
5.7
7,75
3.6
16,4
32.5
15,9
79.3
2.9%
-13,
491.
521
,717
.2-1
,351
.09,
104.
6
10In
com
e(l
oss)
from
fore
ign
part
ners
hips
261
954.
4-5
6.8
194.
51,
841.
913
7.7
0.0%
-1,8
15.2
1,75
8.4
-287
.648
2.1
11In
com
e(l
oss)
from
othe
rpa
ss-t
hrou
ghen
titie
s29
329
0.8
-927
.3-2
74.6
-810
.4-1
,201
.9-0
.2%
-1,2
93.1
365.
8-4
08.1
133.
5
12It
ems
rela
ting
tore
port
able
tran
sact
ions
213
3,07
7.6
-27,
720.
1-7
,130
.5-1
,757
.9-3
4,85
0.6
-6.3
%-2
8,22
9.3
509.
2-8
,032
.390
1.8
13In
tere
stin
com
e2,
833
169,
027.
1-2
,275
.6-7
,694
.316
4,56
4.1
-9,9
70.0
-1.8
%-7
,992
.15,
716.
5-8
,481
.478
7.0
14To
tal
accr
ual
toca
shad
just
men
t47
-916
.7-5
9.0
-7.8
-2,5
93.9
-66.
8-0
.0%
-82.
823
.8-7
.80.
0
15H
edgi
ngtr
ansa
ctio
ns33
3-5
,953
.7-2
,163
.5-2
25.0
-3,3
78.6
-2,3
88.5
-0.4
%-5
,685
.53,
522.
0-3
88.0
163.
0
16M
ark-
to-m
arke
tin
com
e(l
oss)
311
8,34
2.2
257.
5-8
64.2
2,12
5.5
-606
.7-0
.1%
-2,7
23.0
2,98
0.5
-1,0
03.9
139.
6
17In
vent
ory
valu
atio
nad
just
men
ts1,
798
-890
,042
.82,
056.
7-8
76.3
-880
,017
.41,
180.
40.
2%-8
,903
.810
,960
.5-3
,003
.12,
126.
8
18Sa
leve
rsus
leas
e(f
orse
llers
and/
orle
ssor
s)12
11,
922.
325
,720
.5-1
8.7
8,84
5.1
25,7
01.8
4.6%
-629
.426
,350
.0-1
8.7
0.0
19Se
ctio
n48
1(a)
adju
stm
ents
659
.-3
42.3
1.7
-422
.9-3
40.6
-0.1
%-3
,423
.93,
081.
6-3
.35.
0
20U
near
ned/
defe
rred
reve
nue
1,30
421
,446
.8-2
60.2
135.
519
,843
.6-1
24.7
-0.0
%-5
,481
.85,
221.
5-1
16.7
252.
2
21In
com
ere
cogn
ition
from
long
-ter
mco
ntra
cts
775,
127.
7-8
.00.
85,
124.
4-7
.1-0
.0%
-358
.135
0.1
-0.7
1.5
22O
rigi
nal
issu
edi
scou
ntan
dot
her
impu
ted
inte
rest
182
820.
9-1
84.8
-19.
264
3.0
-204
.0-0
.0%
-1,8
01.1
1,61
6.4
-59.
940
.7
23a
Boo
kdi
spos
itio
nof
asse
tsot
her
than
inve
ntor
y2,
800
10,1
42.1
-35,
775.
3-1
,251
.9.
-37,
027.
1-6
.7%
-43,
315.
47,
540.
1-2
,629
.01,
377.
2
23b
Gro
ssca
pita
lga
ins
Sch.
D,
excl
udin
gfl
ow-t
hrou
gh1,
149
.34
,884
.25,
007.
014
,598
.639
,891
.17.
2%-1
88.5
35,0
72.7
-284
.05,
291.
0
23c
Gro
ssca
pita
llo
ssSc
h.D
,ex
clud
ing
flow
-thr
ough
564
.-8
,593
.8-1
,571
.4-2
,682
.0-1
0,16
5.2
-1.8
%-8
,992
.839
8.9
-1,8
28.9
257.
5
23d
Net
gain
/loss
repo
rted
onFo
rm47
97,
line
173,
061
.15
,096
.298
9.1
5,67
7.2
16,0
85.2
2.9%
-9,2
41.3
24,3
37.4
-322
.61,
311.
6
23e
Aba
ndon
men
tlo
sses
270
.-2
,188
.4-3
61.3
-1,2
96.2
-2,5
49.6
-0.5
%-2
,566
.037
7.6
-367
.26.
0
23f
Wor
thle
ssst
ock
loss
es10
4.
-795
.0-5
,306
.3-4
,415
.5-6
,101
.3-1
.1%
-817
.422
.4-5
,306
.30.
0
23g
Oth
erdi
spos
ition
sex
clud
ing
inve
ntor
y37
2.
1,11
8.0
95.8
555.
61,
213.
80.
2%-3
08.2
1,42
6.2
-30.
612
6.5
24D
isal
low
edca
pita
llo
ssin
exce
ssof
capi
tal
gain
s42
0.
8,64
2.1
1,48
8.5
1,82
3.2
10,1
30.6
1.8%
-14.
08,
656.
1-9
3.0
1,58
1.5
25U
tiliz
atio
nof
capi
tal
loss
carr
yfor
war
d30
4.
-4,1
02.6
-1,3
73.6
-1,9
54.1
-5,4
76.2
-1.0
%-4
,138
.636
.0-1
,373
.60.
0
26O
ther
inco
me
(los
s)it
ems
wit
hdi
ffer
ence
s2,
827
691,
044.
5-8
,769
.4-4
9,59
8.6
712,
433.
9-5
8,36
8.0
-10.
5%-4
2,63
2.7
33,8
63.3
-68,
835.
719
,237
.1
**SU
BT
OTA
L.
69,5
53.0
-626
.1-2
3,11
5.2
93,0
95.6
-23,
741.
3-4
.3%
-216
,555
.321
5,92
9.3
-170
,609
.014
7,49
3.8
**A
mou
ntto
Rec
onci
le.
36,9
65.4
478.
6-9
98.3
20,8
80.1
-519
.7-0
.1%
-4.0
482.
6-1
,054
.155
.8
27To
tal
inco
me
item
s(c
ombi
nelin
es1
thru
26)
4,10
010
6,51
8.4
-147
.5-2
4,11
3.5
113,
975.
7-2
4,26
1.0
-4.4
%-2
16,5
59.4
216,
411.
9-1
71,6
63.1
147,
549.
6
28To
tal
expe
nse
item
s(f
rom
Part
III
line
36)
4,18
5-7
71,2
34.9
-73,
443.
412
5,92
0.0
-761
,390
.9
**E
xpen
sebe
fore
Fede
ral
tax
expe
nse
..
..
.-8
7,77
9.7
-15.
8%-2
24,0
90.8
147,
045.
4-8
0,32
8.4
69,5
94.1
29O
ther
item
sw
ithno
diff
eren
ces
2,17
780
8,19
8.0
..
808,
118.
5
**SU
BT
OTA
L.
143,
481.
5-7
3,59
0.9
101,
806.
516
0,70
3.3
**A
mou
ntto
Rec
onci
le.
270,
642.
7-3
19.1
340.
828
1,65
8.6
21.7
0.0%
-325
.26.
1-1
74.5
515.
3
30R
econ
cilia
tion
tota
ls(c
ombi
nelin
es27
-29)
4,19
541
4,12
4.2
-73,
910.
010
2,14
7.3
442,
361.
9
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.14
0,25
6.1
-3,6
02.0
-136
,654
.1.
>>P
reta
xbo
okin
com
ean
dM
-3di
ffer
ence
s.
554,
380.
3-7
7,51
2.0
-34,
506.
944
2,36
1.9
-112
,018
.8-2
0.2%
-440
,975
.336
3,46
3.4
-252
,166
.121
7,65
9.1
>>
Per
cent
ofP
reta
xbo
ok10
0.0%
-14.
0%-6
.2%
79.8
%-2
0.2%
-79.
5%65
.6%
-45.
5%39
.3%
COMMENTARY / SPECIAL REPORT
968 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e8.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:SE
C10
-KF
inan
cial
Stat
emen
tD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el3
of3
Par
tII
IE
XP
EN
SEIT
EM
S(s
ign
mat
ches
Par
tII
)F
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
U.S
.cu
rren
tin
com
eta
xex
pens
e3,
230
-52,
175.
71,
937.
312
7,28
1.2
.12
9,21
8.5
23.3
%-2
76.6
2,21
3.9
-10,
711.
213
7,99
2.3
02U
.S.
defe
rred
inco
me
tax
expe
nse
1,62
8-4
,765
.71,
664.
79,
373.
0.
11,0
37.7
2.0%
-346
.32,
010.
9-2
2,26
7.1
31,6
40.1
03St
ate
and
loca
lcu
rren
tin
com
eta
xex
pens
e2,
935
-5,9
35.5
1,34
9.3
-952
.2-5
,869
.539
7.0
0.1%
-2,7
30.8
4,08
0.1
-2,3
85.7
1,43
3.5
04St
ate
and
loca
lde
ferr
edin
com
eta
xex
pens
e1,
106
110.
7-5
99.9
-194
.1.
-794
.0-0
.1%
-2,3
47.9
1,74
8.0
-1,1
06.3
912.
2
05Fo
reig
ncu
rren
tin
com
eta
xex
pens
e(o
ther
than
WH
)61
1-2
,676
.725
3.6
13,2
07.2
-105
.713
,460
.82.
4%-1
94.1
447.
7-4
26.9
13,6
34.1
06Fo
reig
nde
ferr
edin
com
eta
xex
pens
e16
5-1
59.4
-175
.430
2.0
.12
6.6
0.0%
-221
.646
.2-5
64.7
866.
7
07Fo
reig
nw
ithho
ldin
gta
xes
400
-478
.5-1
68.7
2,29
4.0
-137
.12,
125.
30.
4%-2
12.9
44.2
-191
.02,
485.
0
08In
cent
ive
stoc
kop
tions
1,11
5.
-389
.1-5
,632
.8-2
,811
.2-6
,021
.9-1
.1%
-657
.526
8.4
-5,8
11.2
178.
4
09N
onqu
alif
ied
stoc
kop
tion
s2,
193
-1,5
98.1
-2,0
69.3
-36,
303.
9-1
6,03
6.4
-38,
373.
1-6
.9%
-4,4
72.7
2,40
3.5
-36,
577.
327
3.4
10O
ther
equi
ty-b
ased
com
pens
atio
n1,
274
-4,3
40.3
1,59
1.0
-3,9
53.9
-5,4
99.2
-2,3
62.8
-0.4
%-1
,704
.33,
295.
3-4
,634
.168
0.2
11M
eals
and
ente
rtai
nmen
t4,
013
-3,5
32.0
-5.0
3,43
5.2
-2,1
05.3
3,43
0.2
0.6%
-13.
18.
1-1
9.3
3,45
4.5
12Fi
nes
and
pena
lties
1,88
7-6
21.5
45.2
1,71
9.0
-13.
11,
764.
20.
3%-0
.846
.0-1
8.4
1,73
7.3
13Pu
nitiv
eda
mag
es29
-26.
187
3.5
1.0
-0.3
874.
50.
2%-1
.587
5.0
0.0
1.0
14Pa
rach
ute
paym
ents
29-3
.76.
838
.27.
544
.90.
0%-6
.513
.30.
038
.2
15C
ompe
nsat
ion
with
sect
ion
162(
m)
limita
tion
606
-2,2
69.6
39.3
1,15
8.1
-2,4
48.1
1,19
7.4
0.2%
-12.
651
.9-3
0.3
1,18
8.5
16P
ensi
onan
dpr
ofit
-sha
ring
1,88
3-1
4,21
1.7
-14,
273.
0-1
,407
.8-1
8,51
1.6
-15,
680.
8-2
.8%
-22,
276.
48,
003.
3-1
,527
.912
0.1
17O
ther
post
-ret
irem
ent
bene
fits
1,23
5-6
,905
.32,
277.
8-1
,478
.6-5
,307
.379
9.2
0.1%
-3,8
41.6
6,11
9.4
-1,4
84.8
6.2
18D
efer
red
com
pens
atio
n1,
835
-14,
705.
62,
338.
1-1
93.7
-13,
468.
72,
144.
40.
4%-2
,392
.14,
730.
3-4
03.2
209.
5
19C
hari
tabl
eco
ntri
butio
nof
cash
and
tang
ible
prop
2,23
3-1
,939
.329
.0-8
19.3
-2,3
05.4
-790
.4-0
.1%
-221
.925
0.8
-867
.748
.3
20C
hari
tabl
eco
ntri
butio
nof
inta
ngib
lepr
oper
ty69
-76.
0-4
6.4
-65.
3-1
13.8
-111
.8-0
.0%
-46.
90.
4-6
6.0
0.7
21C
hari
tabl
eco
ntri
butio
nlim
itatio
n1,
348
.75
6.8
350.
937
5.7
1,10
7.7
0.2%
-61.
281
8.0
-1.8
352.
7
22C
hari
tabl
eco
ntri
butio
nca
rryf
orw
ard
used
333
.-4
26.3
-69.
3-1
13.3
-495
.6-0
.1%
-427
.61.
3-6
9.3
0.1
23C
urre
ntac
q./r
eorg
.in
vest
men
tba
nkin
gfe
es69
-27.
9-3
4.4
2.7
-42.
8-3
1.7
-0.0
%-7
2.0
37.6
-55.
257
.9
24C
urre
ntac
q./r
eorg
.le
gal/a
ccou
ntin
gfe
es22
4-3
80.9
63.6
273.
0-2
70.9
336.
60.
1%-1
17.7
181.
3-1
2.2
285.
3
25C
urre
ntac
q./r
eorg
.ot
her
cost
s24
5-8
26.7
330.
419
5.6
-544
.052
6.0
0.1%
-477
.180
7.5
-45.
724
1.3
26A
mor
tizat
ion/
impa
irm
ent
ofgo
odw
ill1,
673
-2,5
12.5
-8,4
99.1
3,23
3.7
-4,9
85.8
-5,2
65.4
-0.9
%-1
0,64
1.7
2,14
2.6
-991
.14,
224.
8
27A
mor
tizat
ion
ofac
q./r
eorg
.an
dst
artu
pco
sts
1,10
8-6
30.5
-264
.545
.0-7
47.6
-219
.5-0
.0%
-914
.965
0.4
-52.
097
.0
28O
ther
amor
tiza
tion
orim
pair
men
tw
rite
-off
s2,
868
-23,
272.
727
,856
.218
,460
.6-1
6,10
0.2
46,3
16.8
8.4%
-12,
604.
440
,460
.6-2
,216
.920
,677
.4
29Se
c19
8en
viro
nmen
tal
rem
edia
tion
cost
s98
-130
.437
6.1
-1.2
-140
.837
4.9
0.1%
-231
.260
7.4
-1.3
0.1
30D
eple
tion
214
-2,0
39.8
1,28
6.0
-1,1
40.4
-2,5
47.6
145.
60.
0%-2
,106
.03,
392.
0-1
,204
.163
.7
31D
epre
ciat
ion
4,06
8-7
2,25
9.3
-74,
744.
636
3.1
-101
,065
.9-7
4,38
1.6
-13.
4%-8
6,45
2.4
11,7
07.8
-118
.748
1.8
32B
adde
btex
pens
e3,
514
-17,
505.
2-3
,223
.0-2
54.0
-19,
077.
7-3
,477
.0-0
.6%
-9,1
91.5
5,96
8.5
-324
.270
.1
33C
orpo
rate
owne
dlif
ein
sura
nce
prem
ium
s95
843
.03.
7-4
58.0
-66.
8-4
54.3
-0.1
%-3
4.0
37.7
-713
.625
5.5
34Pu
rcha
seve
rsus
leas
e20
6-3
94.4
-489
.9-6
5.7
-814
.4-5
55.7
-0.1
%-8
86.5
396.
5-6
6.0
0.3
35O
ther
expe
nse/
dedc
tnite
ms
with
diff
eren
ces
4,06
6-5
35,3
49.5
-11,
006.
3-3
,030
.0-5
41,1
59.6
-14,
036.
4-2
.5%
-58,
306.
847
,300
.5-1
8,34
1.5
15,3
11.4
**SU
BT
OTA
L.
-771
,596
.9-7
3,33
6.9
125,
713.
2-7
62,0
26.9
52,3
76.3
9.4%
-224
,503
.115
1,16
6.2
-113
,306
.623
9,01
9.8
**A
mou
ntto
Rec
onci
le.
-3,8
83.7
-106
.520
6.7
-3,4
72.8
100.
20.
0%-2
10.5
104.
0-0
.120
6.7
36To
tal
expe
nse
item
s(c
ombi
nelin
es1-
35)
4,18
5-7
75,4
80.6
-73,
443.
412
5,91
9.9
-765
,499
.752
,476
.49.
5%-2
24,7
13.7
151,
270.
2-1
13,3
06.6
239,
226.
5
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.56
,941
.5-3
,602
.0-1
36,6
54.1
.-1
40,2
56.1
-25.
3%62
2.9
-4,2
24.9
32,9
78.2
-169
,632
.4
>>
Tota
lex
pens
eite
ms
befo
reFe
dera
lta
xex
pens
e.
-718
,539
.1-7
7,04
5.4
-10,
734.
3-7
65,4
99.7
-87,
779.
7-1
5.8%
-224
,090
.814
7,04
5.4
-80,
328.
469
,594
.1
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 969
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e9.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:A
udit
edF
inan
cial
Stat
emen
t(N
otSE
C10
-K)
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el1
of3
Pop
ulat
ion
Ove
rvie
w
Ret
urns
13,5
44
Tota
lAss
ets
5,69
5,53
3.2
Tax
Les
sC
redi
ts29
,138
.8
Tax
Net
Inco
me
85,2
10.9
Est
imat
edIC
D1,
610.
0
Oth
erSO
IA
djus
tmen
ts-5
0.6
Part
IIL
ine
30C
olA
86,7
70.3
Tax
Exe
mpt
Inte
rest
1,95
8.0
Par
tI
FIN
AN
CIA
LST
AT
EM
EN
TD
AT
AF
req
Inco
me
Neg
Pos
%B
ook
Inco
me
Neg
Pos
4W
orld
wid
eco
nsol
idat
edne
tin
com
e(l
oss)
13,3
4482
,208
.8-2
7,88
3.3
110,
092.
193
.6%
-31.
8%12
5.4%
5In
com
e(lo
ss)
from
noni
nclu
dibl
efo
reig
nen
titie
s1,
501
-8,3
60.4
-12,
267.
33,
906.
8-9
.5%
-14.
0%4.
5%
6In
com
e(lo
ss)
from
noni
nclu
dibl
eU
.S.
entit
ies
713
-10,
407.
7-1
3,19
6.4
2,78
8.7
-11.
9%-1
5.0%
3.2%
7In
com
e(lo
ss)
ofot
her
incl
udib
leco
rpor
atio
ns17
069
1.1
-801
.41,
492.
50.
8%-0
.9%
1.7%
8A
djus
tco
nsol
idat
ion
elim
inat
ions
(bec
ause
oflin
es5-
7)70
56,
592.
1-1
,040
.37,
632.
37.
5%-1
.2%
8.7%
9A
djus
tbo
okye
arto
tax
year
200
666.
8-1
65.4
832.
20.
8%-0
.2%
0.9%
10O
ther
adju
stm
ents
540
16,2
82.1
-1,0
36.2
17,3
18.3
18.5
%-1
.2%
19.7
%
**E
nter
edon
line
11on
ly(B
ooks
and
Rec
ords
)18
313
0.3
-221
.835
2.1
0.1%
-0.3
%0.
4%
**SU
BT
OTA
L.
87,8
03.0
100.
0%
**A
mou
ntto
Rec
onci
le.
-16.
8-0
.0%
11N
etin
com
epe
rin
com
est
atem
ent
ofin
clud
ible
corp
orat
ions
13,5
4487
,786
.2-2
7,91
3.8
115,
700.
010
0.0%
%P
reta
xB
ook
Inco
me
Neg
Pos
**A
mou
ntto
Rec
onci
le.
0.0
0.0%
**N
etin
com
epe
rPa
rtII
Lin
e30
Col
umn
A.
87,7
86.2
72.5
%
**R
ever
seFe
dera
lta
xex
pens
e.
33,2
34.2
27.5
%
**Pr
etax
book
Inco
me
.12
1,02
0.4
100.
0%
**Te
mpo
rary
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-1
4,87
0.4
-145
,931
.513
1,06
1.1
-12.
3%-1
20.6
%10
8.3%
**Pe
rman
ent
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-1
9,37
9.7
-46,
452.
927
,073
.1-1
6.0%
-38.
4%22
.4%
**N
etta
xin
com
epe
rPa
rtII
Lin
e30
Col
umn
D.
86,7
70.3
71.7
%
**SO
Ire
mov
edIC
D.
-1,6
10.0
-1.3
%
**O
ther
SOI
adju
stm
ents
.50
.60.
0%
**Ta
xne
tin
com
ere
port
edby
SOI
.85
,210
.970
.4%
COMMENTARY / SPECIAL REPORT
970 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e9.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:A
udit
edF
inan
cial
Stat
emen
t(N
otSE
C10
-K)
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el2
of3
Par
tII
INC
OM
EIT
EM
SF
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
Inco
me
(los
s)fr
omeq
uity
met
hod
fore
ign
corp
orat
ions
357
323.
2-2
30.9
-238
.6.
-469
.5-0
.4%
-283
.352
.4-3
82.2
143.
6
02G
ross
fore
ign
divi
dend
sno
tpr
evio
usly
taxe
d34
21,
266.
4-6
30.5
1,09
3.6
849.
646
3.1
0.4%
-881
.125
0.7
-58.
81,
152.
3
03Su
bpar
tF,
QE
F,an
dsi
mila
rin
com
ein
clus
ions
240
.43
7.0
799.
532
7.5
1,23
6.4
1.0%
-13.
945
0.8
-1.8
801.
2
04Se
ctio
n78
gros
s-up
247
.12
3.3
771.
624
4.1
894.
90.
7%0.
012
3.3
0.0
771.
6
05G
ross
fore
ign
dist
ribu
tions
prev
ious
lyta
xed
5172
.1-1
6.7
-98.
9-2
6.9
-115
.6-0
.1%
-104
.888
.0-1
17.2
18.3
06In
com
e(l
oss)
from
equi
tym
etho
dU
.S.
corp
orat
ions
670
5,67
2.2
-1,4
01.9
-4,2
10.3
.-5
,612
.2-4
.6%
-1,7
01.6
299.
7-4
,628
.341
8.0
07U
.S.
divi
dend
sno
tel
imin
ated
inta
xco
nsol
idat
ion
2,27
216
,587
.488
8.3
-13,
924.
53,
020.
9-1
3,03
6.2
-10.
8%-5
28.1
1,41
6.4
-14,
780.
885
6.3
08M
inor
ityin
tere
stfo
rin
clud
ible
corp
orat
ions
187
-134
.123
.548
3.8
.50
7.4
0.4%
-8.1
31.6
-11.
049
4.9
09In
com
e(l
oss)
from
U.S
part
ners
hips
2,43
65,
442.
32,
235.
011
5.4
6,68
2.8
2,35
0.4
1.9%
-3,5
88.1
5,82
3.1
-787
.590
2.8
10In
com
e(l
oss)
from
fore
ign
part
ners
hips
151
25.3
1,13
2.4
3.1
3.4
1,13
5.5
0.9%
-451
.21,
583.
7-6
9.9
72.9
11In
com
e(l
oss)
from
othe
rpa
ss-t
hrou
ghen
titie
s37
519
4.0
75.4
-40.
313
4.0
35.1
0.0%
-168
.924
4.3
-57.
417
.1
12It
ems
rela
ting
tore
port
able
tran
sact
ions
104
-1,1
14.2
-4,1
18.4
-394
.6-1
,323
.0-4
,512
.9-3
.7%
-4,5
66.7
448.
3-3
94.9
0.4
13In
tere
stin
com
e7,
552
85,9
43.4
939.
1-2
,108
.243
,078
.5-1
,169
.1-1
.0%
-758
.51,
697.
6-2
,130
.121
.9
14To
tal
accr
ual
toca
shad
just
men
t41
894
9.6
275.
013
.31,
195.
028
8.2
0.2%
-130
.540
5.4
-1.8
15.1
15H
edgi
ngtr
ansa
ctio
ns26
0-7
21.7
727.
69.
7-7
87.5
737.
30.
6%-8
75.8
1,60
3.4
-1.3
11.0
16M
ark-
to-m
arke
tin
com
e(l
oss)
353
-428
.7-3
7.9
5.1
-3,0
99.2
-32.
8-0
.0%
-1,4
13.3
1,37
5.4
-4.1
9.2
17In
vent
ory
valu
atio
nad
just
men
ts4,
780
-625
,669
.144
,965
.9-3
65.0
-635
,666
.444
,600
.936
.9%
-4,0
28.3
48,9
94.2
-510
.914
5.8
18Sa
leve
rsus
leas
e(f
orse
llers
and/
orle
ssor
s)13
02,
231.
63,
519.
7-1
,750
.45,
100.
01,
769.
31.
5%-2
76.0
3,79
5.7
-1,7
51.0
0.7
19Se
ctio
n48
1(a)
adju
stm
ents
872
.-3
33.2
-11.
7-2
10.7
-344
.9-0
.3%
-836
.950
3.7
-25.
013
.3
20U
near
ned/
defe
rred
reve
nue
1,38
713
,083
.219
2.5
-8.0
13,3
93.9
184.
50.
2%-8
10.3
1,00
2.8
-10.
42.
4
21In
com
ere
cogn
ition
from
long
-ter
mco
ntra
cts
205
6,33
8.1
-19.
9-0
.45,
036.
6-2
0.3
-0.0
%-1
14.4
94.6
-0.6
0.2
22O
rigi
nal
issu
edi
scou
ntan
dot
her
impu
ted
inte
rest
143
53.2
-80.
2-7
0.6
18.0
-150
.8-0
.1%
-500
.842
0.6
-87.
516
.9
23a
Boo
kdi
spos
itio
nof
asse
tsot
her
than
inve
ntor
y6,
496
4,25
5.9
-1,9
40.1
-3,2
53.3
.-5
,193
.4-4
.3%
-4,7
77.1
2,83
7.1
-3,5
77.7
324.
4
23b
Gro
ssca
pita
lga
ins
Sch.
D,
excl
udin
gfl
ow-t
hrou
gh1,
734
.3,
811.
31,
705.
53,
281.
25,
516.
84.
6%-2
23.7
4,03
5.0
-21.
01,
726.
5
23c
Gro
ssca
pita
llo
ssSc
h.D
,ex
clud
ing
flow
-thr
ough
787
.-2
,495
.4-2
59.6
-2,0
85.1
-2,7
55.0
-2.3
%-2
,806
.731
1.3
-260
.50.
9
23d
Net
gain
/loss
repo
rted
onFo
rm47
97,
line
177,
160
.6,
830.
923
6.0
1,35
8.5
7,06
7.0
5.8%
-3,6
47.5
10,4
78.5
-143
.837
9.9
23e
Aba
ndon
men
tlo
sses
302
.-4
19.8
-27.
5-1
44.6
-447
.3-0
.4%
-452
.632
.7-2
7.5
0.0
23f
Wor
thle
ssst
ock
loss
es87
.-1
65.1
-116
.1-8
4.6
-281
.2-0
.2%
-168
.23.
1-1
19.2
3.0
23g
Oth
erdi
spos
ition
sex
clud
ing
inve
ntor
y88
0.
953.
412
.326
8.0
965.
70.
8%-1
31.0
1,08
4.4
-26.
238
.5
24D
isal
low
edca
pita
llo
ssin
exce
ssof
capi
tal
gain
s56
4.
671.
71,
516.
21,
643.
92,
188.
01.
8%-3
4.5
706.
20.
01,
516.
2
25U
tiliz
atio
nof
capi
tal
loss
carr
yfor
war
d53
6.
-663
.0-1
18.5
-542
.7-7
81.4
-0.6
%-6
63.6
0.7
-118
.50.
0
26O
ther
inco
me
(los
s)it
ems
wit
hdi
ffer
ence
s6,
625
195,
951.
1-4
4,11
4.9
-5,9
64.5
184,
856.
8-5
0,07
9.4
-41.
4%-5
3,57
9.8
9,46
4.9
-9,1
14.2
3,14
9.6
**SU
BT
OTA
L.
-289
,678
.811
,134
.4-2
6,19
5.9
-373
,477
.8-1
5,06
1.5
-12.
4%-8
8,52
5.0
99,6
59.4
-39,
220.
913
,025
.0
**A
mou
ntto
Rec
onci
le.
-43,
602.
0-5
.50.
514
,794
.2-5
.0-0
.0%
-6.2
0.7
0.0
0.5
27To
tal
inco
me
item
s(c
ombi
nelin
es1
thru
26)
12,4
90-3
33,2
80.8
11,1
28.9
-26,
195.
5-3
58,6
83.5
-15,
066.
6-1
2.4%
-88,
531.
399
,660
.2-3
9,22
0.9
13,0
25.4
28To
tal
expe
nse
item
s(f
rom
Part
III
line
36)
13,3
39-2
06,1
29.5
-24,
631.
438
,738
.3-1
96,6
17.4
**E
xpen
sebe
fore
Fede
ral
tax
expe
nse
..
..
.-1
9,12
7.3
-15.
8%-5
7,27
9.2
31,3
80.9
-7,2
32.0
14,0
02.9
29O
ther
item
sw
ithno
diff
eren
ces
7,84
959
2,04
0.9
..
592,
084.
8
**SU
BT
OTA
L.
52,6
30.6
-13,
502.
512
,542
.936
,783
.9
**A
mou
ntto
Rec
onci
le.
35,1
55.6
-101
.144
.849
,986
.4-5
6.3
-0.0
%-1
21.1
20.0
0.0
44.8
30R
econ
cilia
tion
tota
ls(c
ombi
nelin
es27
-29)
13,5
4487
,786
.2-1
3,60
3.5
12,5
87.6
86,7
70.3
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.33
,234
.2-1
,266
.9-3
1,96
7.3
.
>>P
reta
xbo
okin
com
ean
dM
-3di
ffer
ence
s.
121,
020.
4-1
4,87
0.4
-19,
379.
786
,770
.3-3
4,25
0.1
-28.
3%-1
45,9
31.5
131,
061.
1-4
6,45
2.9
27,0
73.1
>>
Per
cent
ofP
reta
xbo
ok10
0.0%
-12.
3%-1
6.0%
71.7
%-2
8.3%
-120
.6%
108.
3%-3
8.4%
22.4
%
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 971
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e9.
Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:A
udit
edF
inan
cial
Stat
emen
t(N
otSE
C10
-K)
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el3
of3
Par
tII
IE
XP
EN
SEIT
EM
S(s
ign
mat
ches
Par
tII
)F
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
U.S
.cu
rren
tin
com
eta
xex
pens
e10
,022
-14,
757.
581
0.7
29,1
34.4
.29
,945
.124
.7%
-156
.896
7.5
-2,6
60.5
31,7
94.9
02U
.S.
defe
rred
inco
me
tax
expe
nse
5,15
0-3
,295
.645
6.2
2,83
3.0
.3,
289.
12.
7%-4
41.1
897.
3-3
,860
.76,
693.
7
03St
ate
and
loca
lcu
rren
tin
com
eta
xex
pens
e7,
613
-2,4
95.0
-105
.911
8.6
-2,3
86.0
12.7
0.0%
-820
.971
5.1
-232
.935
1.4
04St
ate
and
loca
lde
ferr
edin
com
eta
xex
pens
e2,
667
-306
.017
6.1
337.
2.
513.
30.
4%-3
48.2
524.
3-9
8.6
435.
8
05Fo
reig
ncu
rren
tin
com
eta
xex
pens
e(o
ther
than
WH
)45
5-3
80.7
34.3
1,51
5.6
-122
.51,
549.
91.
3%-1
1.6
45.9
-323
.21,
838.
8
06Fo
reig
nde
ferr
edin
com
eta
xex
pens
e70
41.2
6.9
-131
.2.
-124
.2-0
.1%
-12.
619
.5-1
44.2
13.0
07Fo
reig
nw
ithho
ldin
gta
xes
296
-63.
22.
369
.7-3
1.1
72.0
0.1%
-2.3
4.7
-8.0
77.7
08In
cent
ive
stoc
kop
tions
198
.57
.7-3
4.0
-62.
523
.70.
0%-4
6.3
104.
0-7
5.5
41.5
09N
onqu
alif
ied
stoc
kop
tion
s58
4-1
86.7
191.
1-9
45.6
-364
.1-7
54.5
-0.6
%-1
42.1
333.
2-9
80.1
34.4
10O
ther
equi
ty-b
ased
com
pens
atio
n41
0-2
17.0
-101
.9-4
12.5
-779
.1-5
14.4
-0.4
%-2
66.9
165.
0-4
55.6
43.1
11M
eals
and
ente
rtai
nmen
t11
,907
-1,9
03.8
11.4
1,30
4.9
-992
.81,
316.
21.
1%-0
.111
.5-1
.51,
306.
4
12Fi
nes
and
pena
lties
3,37
3-8
2.4
24.5
61.9
-8.5
86.4
0.1%
-0.4
24.9
-8.5
70.4
13Pu
nitiv
eda
mag
es23
-0.3
11.4
0.3
-5.0
11.7
0.0%
-5.0
16.5
0.0
0.3
14Pa
rach
ute
paym
ents
80.
0-0
.149
.3-0
.649
.20.
0%-0
.10.
00.
049
.3
15C
ompe
nsat
ion
with
sect
ion
162(
m)
limita
tion
81-7
91.8
0.8
8.7
-787
.59.
50.
0%-2
.12.
90.
08.
7
16P
ensi
onan
dpr
ofit
-sha
ring
4,68
4-5
,150
.4-1
,793
.7-2
1.2
-5,9
26.2
-1,8
14.9
-1.5
%-2
,908
.61,
114.
9-5
6.7
35.5
17O
ther
post
-ret
irem
ent
bene
fits
3,18
3-3
,484
.91,
132.
2-2
72.5
-2,9
79.5
859.
70.
7%-2
37.3
1,36
9.5
-278
.15.
6
18D
efer
red
com
pens
atio
n2,
677
-4,9
21.5
1,32
7.9
-3.6
-4,3
97.4
1,32
4.4
1.1%
-412
.11,
740.
0-5
4.2
50.6
19C
hari
tabl
eco
ntri
butio
nof
cash
and
tang
ible
prop
5,68
5-8
19.1
93.4
-104
.1-8
51.4
-10.
7-0
.0%
-22.
511
5.9
-116
.612
.6
20C
hari
tabl
eco
ntri
butio
nof
inta
ngib
lepr
oper
ty12
9-3
1.5
-2.7
-10.
9-3
0.6
-13.
6-0
.0%
-5.1
2.5
-12.
01.
0
21C
hari
tabl
eco
ntri
butio
nlim
itatio
n3,
649
.14
0.3
84.4
136.
022
4.7
0.2%
-10.
815
1.1
-0.3
84.7
22C
hari
tabl
eco
ntri
butio
nca
rryf
orw
ard
used
1,05
9.
-196
.2-7
2.3
-97.
4-2
68.4
-0.2
%-1
97.8
1.6
-72.
50.
2
23C
urre
ntac
q./r
eorg
.in
vest
men
tba
nkin
gfe
es38
-7.4
-49.
8-1
0.8
-19.
9-6
0.6
-0.1
%-5
2.9
3.1
-23.
812
.9
24C
urre
ntac
q./r
eorg
.le
gal/a
ccou
ntin
gfe
es17
2-4
1.2
-0.8
13.3
-25.
912
.50.
0%-1
6.7
15.8
-8.6
21.9
25C
urre
ntac
q./r
eorg
.ot
her
cost
s18
1-8
1.3
10.3
-314
.0-4
3.1
-303
.7-0
.3%
-40.
751
.0-3
61.9
47.9
26A
mor
tizat
ion/
impa
irm
ent
ofgo
odw
ill2,
271
-4,3
95.9
-1,1
86.7
4,24
6.9
-1,7
34.2
3,06
0.2
2.5%
-2,2
96.6
1,10
9.9
-79.
14,
326.
0
27A
mor
tizat
ion
ofac
q./r
eorg
.an
dst
artu
pco
sts
1,89
3-3
55.2
-304
.212
7.4
-523
.7-1
76.8
-0.1
%-5
63.5
259.
3-1
1.3
138.
6
28O
ther
amor
tiza
tion
orim
pair
men
tw
rite
-off
s5,
627
-6,2
66.0
3,10
5.2
146.
9-4
,675
.23,
252.
12.
7%-2
,846
.55,
951.
7-3
0.2
177.
0
29Se
c19
8en
viro
nmen
tal
rem
edia
tion
cost
s57
-17.
6-2
3.6
0.6
-42.
1-2
3.0
-0.0
%-3
7.3
13.8
0.0
0.6
30D
eple
tion
337
-909
.120
4.7
-354
.4-1
,095
.4-1
49.7
-0.1
%-4
29.9
634.
6-3
54.4
0.0
31D
epre
ciat
ion
12,5
05-2
4,41
1.8
-26,
874.
724
.1-3
9,61
2.7
-26,
850.
5-2
2.2%
-30,
069.
63,
194.
9-2
3.3
47.5
32B
adde
btex
pens
e8,
694
-3,9
29.9
-1,8
24.5
14.9
-3,5
36.8
-1,8
09.6
-1.5
%-4
,373
.02,
548.
5-4
8.0
62.9
33C
orpo
rate
owne
dlif
ein
sura
nce
prem
ium
s2,
829
-71.
0-3
1.8
62.5
-17.
130
.70.
0%-6
7.0
35.2
-81.
214
3.6
34Pu
rcha
seve
rsus
leas
e17
9-1
98.3
-110
.10.
1-2
16.9
-109
.9-0
.1%
-220
.411
0.3
0.0
0.1
35O
ther
expe
nse/
dedc
tnite
ms
with
diff
eren
ces
11,7
27-1
26,4
56.5
161.
51,
270.
1-1
25,0
70.9
1,43
1.6
1.2%
-10,
808.
210
,969
.7-3
,278
.94,
549.
1
**SU
BT
OTA
L.
-205
,987
.6-2
4,64
7.5
38,7
37.7
-196
,300
.014
,090
.211
.6%
-57,
873.
133
,225
.7-1
3,74
0.3
52,4
78.0
**A
mou
ntto
Rec
onci
le.
1,12
7.7
16.1
0.6
-216
.816
.70.
0%-3
.920
.0-1
2.9
13.5
36To
tal
expe
nse
item
s(c
ombi
nelin
es1-
35)
13,3
37-2
04,8
59.9
-24,
631.
438
,738
.3-1
96,5
16.8
14,1
07.0
11.7
%-5
7,87
7.1
33,2
45.7
-13,
753.
252
,491
.5
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.18
,053
.1-1
,266
.9-3
1,96
7.3
.-3
3,23
4.2
-27.
5%59
7.9
-1,8
64.8
6,52
1.2
-38,
488.
6
>>
Tota
lex
pens
eite
ms
befo
reFe
dera
lta
xex
pens
e.
-186
,806
.7-2
5,89
8.3
6,77
1.0
-196
,516
.8-1
9,12
7.3
-15.
8%-5
7,27
9.2
31,3
80.9
-7,2
32.0
14,0
02.9
COMMENTARY / SPECIAL REPORT
972 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e10
.Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:C
olum
nsA
and
DR
econ
cile
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el1
of3
Pop
ulat
ion
Ove
rvie
w
Ret
urns
15,1
69
Tota
lAss
ets
10,4
48,8
39.2
Tax
Les
sC
redi
ts56
,250
.7
Tax
Net
Inco
me
164,
440.
6
Est
imat
edIC
D17
,133
.4
Oth
erSO
IA
djus
tmen
ts-5
5.2
Part
IIL
ine
30C
olA
181,
518.
8
Tax
Exe
mpt
Inte
rest
3,20
8.2
Par
tI
FIN
AN
CIA
LST
AT
EM
EN
TD
AT
AF
req
Inco
me
Neg
Pos
%B
ook
Inco
me
Neg
Pos
4W
orld
wid
eco
nsol
idat
edne
tin
com
e(l
oss)
12,2
2519
2,23
8.2
-57,
287.
124
9,52
5.3
124.
0%-3
6.9%
160.
9%
5In
com
e(lo
ss)
from
noni
nclu
dibl
efo
reig
nen
titie
s1,
724
-42,
455.
1-6
5,56
7.5
23,1
12.5
-27.
4%-4
2.3%
14.9
%
6In
com
e(lo
ss)
from
noni
nclu
dibl
eU
.S.
entit
ies
742
-12,
765.
2-3
1,35
6.1
18,5
91.0
-8.2
%-2
0.2%
12.0
%
7In
com
e(lo
ss)
ofot
her
incl
udib
leco
rpor
atio
ns19
2-4
7.6
-1,4
59.9
1,41
2.3
-0.0
%-0
.9%
0.9%
8A
djus
tco
nsol
idat
ion
elim
inat
ions
(bec
ause
oflin
es5-
7)80
325
,641
.6-6
,544
.532
,186
.116
.5%
-4.2
%20
.8%
9A
djus
tbo
okye
arto
tax
year
186
2,32
9.3
-277
.92,
607.
21.
5%-0
.2%
1.7%
10O
ther
adju
stm
ents
612
-17,
836.
6-5
1,37
5.5
33,5
38.9
-11.
5%-3
3.1%
21.6
%
**E
nter
edon
line
11on
ly(B
ooks
and
Rec
ords
)2,
920
8,27
1.2
-6,2
48.0
14,5
19.2
5.3%
-4.0
%9.
4%
**SU
BT
OTA
L.
155,
375.
910
0.2%
**A
mou
ntto
Rec
onci
le.
-331
.7-0
.2%
11N
etin
com
epe
rin
com
est
atem
ent
ofin
clib
leco
rpor
atio
ns15
,169
155,
044.
1-8
9,31
0.9
244,
355.
110
0.0%
%P
reta
xB
ook
Inco
me
Neg
Pos
**A
mou
ntto
Rec
onci
le.
0.0
0.0%
**N
etin
com
epe
rPa
rtII
Lin
e30
Col
umn
A.
155,
044.
268
.0%
**R
ever
seFe
dera
lta
xex
pens
e.
72,7
96.1
32.0
%
**Pr
etax
book
Inco
me
.22
7,84
0.3
100.
0%
**Te
mpo
rary
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-3
,807
.4-2
20,7
07.5
216,
900.
1-1
.7%
-96.
9%95
.2%
**Pe
rman
ent
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-4
2,51
4.5
-117
,658
.675
,144
.0-1
8.7%
-51.
6%33
.0%
**N
etta
xin
com
epe
rPa
rtII
Lin
e30
Col
umn
D.
181,
518.
879
.7%
**SO
Ire
mov
edIC
D.
-17,
133.
4-7
.5%
**O
ther
SOI
adju
stm
ents
.55
.20.
0%
**Ta
xne
tin
com
ere
port
edby
SOI
.16
4,44
0.6
72.2
%
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 973
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e10
.A
ggre
gate
2004
Sche
dule
M-3
Dat
afo
rU
.S.
Cor
pora
tion
sW
ith
Rec
onci
labl
eD
ata:
Col
umns
Aan
dD
Rec
onci
leD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el2
of3
Par
tII
INC
OM
EIT
EM
SF
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
Inco
me
(los
s)fr
omeq
uity
met
hod
fore
ign
corp
orat
ions
404
4,10
6.2
-1,0
83.0
-2,8
72.4
.-3
,955
.4-1
.7%
-1,1
41.4
58.3
-3,6
22.4
750.
0
02G
ross
fore
ign
divi
dend
sno
tpr
evio
usly
taxe
d60
34,
822.
3-9
2.5
3,63
9.7
8,53
0.6
3,54
7.1
1.6%
-881
.378
8.7
-958
.24,
597.
9
03Su
bpar
tF,
QE
F,an
dsi
mila
rin
com
ein
clus
ions
442
.1,
914.
94,
168.
16,
082.
76,
083.
02.
7%0.
01,
914.
9-1
5.4
4,18
3.5
04Se
ctio
n78
gros
s-up
353
.40
1.0
4,23
7.2
4,63
8.2
4,63
8.3
2.0%
0.0
401.
00.
04,
237.
2
05G
ross
fore
ign
dist
ribu
tions
prev
ious
lyta
xed
881,
024.
4-2
02.2
-957
.7-1
35.2
-1,1
59.9
-0.5
%-2
09.5
7.3
-1,0
87.1
129.
3
06In
com
e(l
oss)
from
equi
tym
etho
dU
.S.
corp
orat
ions
880
23,2
44.9
-1,7
46.5
-21,
507.
8.
-23,
254.
3-1
0.2%
-2,3
54.6
608.
1-2
5,24
6.4
3,73
8.6
07U
.S.
divi
dend
sno
tel
imin
ated
inta
xco
nsol
idat
ion
4,03
524
,860
.61,
663.
1-1
1,91
4.3
14,6
10.9
-10,
251.
1-4
.5%
-639
.42,
302.
5-1
5,20
2.7
3,28
8.4
08M
inor
ityin
tere
stfo
rin
clud
ible
corp
orat
ions
287
-265
.550
.923
0.7
.28
1.6
0.1%
-18.
569
.4-1
12.7
343.
4
09In
com
e(l
oss)
from
U.S
.pa
rtne
rshi
ps3,
408
15,5
71.4
7,89
6.3
1,68
2.2
25,0
49.8
9,57
8.5
4.2%
-6,6
68.7
14,5
65.0
-1,4
93.1
3,17
5.3
10In
com
e(l
oss)
from
fore
ign
part
ners
hips
246
267.
41,
087.
4-4
7.4
1,41
0.2
1,04
0.0
0.5%
-462
.71,
550.
1-3
73.2
325.
9
11In
com
e(l
oss)
from
othe
rpa
ss-t
hrou
ghen
titie
s42
455
9.4
-1,5
71.4
6.0
-1,0
06.0
-1,5
65.4
-0.7
%-1
,828
.525
7.1
-96.
710
2.7
12It
ems
rela
ting
tore
port
able
tran
sact
ions
177
2,16
0.0
-8,1
65.1
-1,5
93.5
-7,5
52.5
-9,7
58.6
-4.3
%-8
,733
.156
8.0
-2,3
43.2
749.
7
13In
tere
stin
com
e13
,069
228,
986.
2-1
,998
.4-3
,785
.022
3,14
7.0
-5,7
83.4
-2.5
%-4
,258
.92,
260.
5-3
,929
.314
4.3
14To
tal
accr
ual
toca
shad
just
men
t46
585
.316
5.5
11.2
-1,3
51.0
176.
80.
1%-1
45.4
311.
0-1
.713
.0
15H
edgi
ngtr
ansa
ctio
ns36
2-6
,047
.1-7
69.6
63.8
-4,9
77.1
-705
.9-0
.3%
-2,3
48.3
1,57
8.7
-5.4
69.2
16M
ark-
to-m
arke
tin
com
e(l
oss)
396
7,79
5.0
-544
.9-8
9.1
-1,0
45.8
-634
.0-0
.3%
-1,6
86.5
1,14
1.6
-206
.111
7.1
17In
vent
ory
valu
atio
nad
just
men
ts6,
510
-1,5
24,8
07.5
4,99
9.1
-273
.5-1
,511
,112
.84,
725.
62.
1%-6
,952
.011
,951
.1-9
03.4
629.
9
18Sa
leve
rsus
leas
e(f
orse
llers
and/
orle
ssor
s)15
73,
726.
810
,768
.513
.113
,903
.610
,781
.64.
7%-2
13.2
10,9
81.7
0.0
13.1
19Se
ctio
n48
1(a)
adju
stm
ents
919
.-3
52.0
-2.5
-376
.7-3
54.5
-0.2
%-2
,114
.81,
762.
8-1
8.9
16.4
20U
near
ned/
defe
rred
reve
nue
1,33
433
,661
.6-1
96.6
198.
233
,648
.71.
60.
0%-2
,774
.72,
578.
1-1
0.4
208.
6
21In
com
ere
cogn
ition
from
long
-ter
mco
ntra
cts
196
8,97
4.1
70.8
-0.2
9,04
0.8
70.6
0.0%
-179
.325
0.1
-0.3
0.1
22O
rigi
nal
issu
edi
scou
ntan
dot
her
impu
ted
inte
rest
163
106.
012
6.4
18.1
216.
414
4.4
0.1%
-185
.531
1.9
-12.
230
.3
23a
Boo
kdi
spos
itio
nof
asse
tsot
her
than
inve
ntor
y9,
114
19,9
04.6
-14,
940.
9-4
,789
.3.
-19,
730.
1-8
.7%
-20,
287.
95,
347.
1-5
,816
.21,
026.
9
23b
Gro
ssca
pita
lga
ins
Sch.
D,
excl
udin
gfl
ow-t
hrou
gh2,
584
.17
,336
.42,
292.
819
,973
.719
,629
.38.
6%-1
75.0
17,5
11.4
-6.6
2,29
9.5
23c
Gro
ssca
pita
llo
ssSc
h.D
,ex
clud
ing
flow
-thr
ough
1,28
9.
-5,6
74.6
151.
5-5
,739
.8-5
,523
.1-2
.4%
-6,0
50.4
375.
7-5
55.9
707.
4
23d
Net
gain
/loss
repo
rted
onFo
rm47
97,
line
178,
644
.6,
862.
582
0.9
7,72
0.8
7,68
3.4
3.4%
-7,6
19.2
14,4
81.7
-193
.21,
014.
1
23e
Aba
ndon
men
tlo
sses
345
.-4
75.0
-13.
6-4
79.6
-488
.6-0
.2%
-519
.644
.6-2
9.0
15.3
23f
Wor
thle
ssst
ock
loss
es95
.-4
14.5
-327
.2-7
37.8
-741
.8-0
.3%
-417
.73.
2-3
27.2
0.0
23g
Oth
erdi
spos
ition
sex
clud
ing
inve
ntor
y1,
151
.1,
464.
949
6.0
1,97
0.7
1,96
0.9
0.9%
-222
.91,
687.
8-8
.750
4.7
24D
isal
low
edca
pita
llo
ssin
exce
ssof
capi
tal
gain
s78
4.
4,56
3.8
1,98
6.6
6,54
9.7
6,55
0.5
2.9%
-1.9
4,56
5.7
-72.
72,
059.
3
25U
tiliz
atio
nof
capi
tal
loss
carr
yfor
war
d74
6.
-2,5
25.4
-556
.4-3
,081
.0-3
,081
.8-1
.4%
-2,5
62.0
36.6
-556
.50.
1
26O
ther
inco
me
(los
s)it
ems
wit
hdi
ffer
ence
s7,
987
784,
778.
2-6
,139
.6-2
,013
.477
6,58
9.1
-8,1
52.9
-3.6
%-2
2,51
8.8
16,3
79.2
-17,
168.
615
,155
.3
**SU
BT
OTA
L.
-366
,485
.612
,479
.1-3
0,72
7.0
-384
,512
.7-1
8,24
7.8
-8.0
%-1
04,1
71.8
116,
650.
9-8
0,37
3.3
49,6
46.4
**A
mou
ntto
Rec
onci
le.
-15.
628
.77.
5-4
8.3
36.2
0.0%
-4.3
33.0
0.0
7.5
27To
tal
inco
me
item
s(c
ombi
nelin
es1
thru
26)
15,1
69-3
66,5
01.2
12,5
07.9
-30,
719.
5-3
84,5
61.0
-18,
211.
6-8
.0%
-104
,176
.111
6,68
3.9
-80,
373.
449
,653
.9
28To
tal
expe
nse
item
s(f
rom
Part
III
line
36)
15,1
69-1
,057
,580
.9-1
3,83
9.5
58,5
25.5
-1,0
12,8
57.3
**E
xpen
sebe
fore
Fede
ral
tax
expe
nse
..
..
.-2
8,11
0.2
-12.
3%-1
16,5
31.3
100,
216.
2-3
7,28
5.0
25,4
89.9
29O
ther
item
sw
ithno
diff
eren
ces
14,7
591,
579,
126.
2.
.1,
578,
937.
1
**SU
BT
OTA
L.
155,
044.
2-1
,331
.627
,806
.018
1,51
8.9
**A
mou
ntto
Rec
onci
le.
0.0
-0.1
0.0
0.0
-0.2
-0.0
%-0
.10.
0-0
.20.
1
30R
econ
cilia
tion
tota
ls(c
ombi
nelin
es27
-29)
15,1
6915
5,04
4.2
-1,3
31.7
27,8
06.0
181,
518.
8
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.72
,796
.1-2
,475
.6-7
0,32
0.5
.
>>P
reta
xbo
okin
com
ean
dM
-3di
ffer
ence
s.
227,
840.
3-3
,807
.4-4
2,51
4.5
181,
518.
8-4
6,32
1.9
-20.
3%-2
20,7
07.5
216,
900.
1-1
17,6
58.6
75,1
44.0
>>
Per
cent
ofP
reta
xbo
ok10
0.0%
-1.7
%-1
8.7%
79.7
%-2
0.3%
-96.
9%95
.2%
-51.
6%33
.0%
COMMENTARY / SPECIAL REPORT
974 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e10
.A
ggre
gate
2004
Sche
dule
M-3
Dat
afo
rU
.S.
Cor
pora
tion
sW
ith
Rec
onci
labl
eD
ata:
Col
umns
Aan
dD
Rec
onci
leD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el3
of3
Par
tII
IE
XP
EN
SEIT
EM
S(s
ign
mat
ches
Par
tII
)F
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
U.S
.cu
rren
tin
com
eta
xex
pens
e11
,490
-64,
950.
71,
096.
863
,794
.0.
64,8
90.8
28.5
%-3
35.7
1,43
2.5
-5,3
30.1
69,1
24.1
02U
.S.
defe
rred
inco
me
tax
expe
nse
4,67
9-7
,795
.01,
378.
86,
526.
5.
7,90
5.3
3.5%
-562
.51,
941.
3-8
,632
.615
,159
.0
03St
ate
and
loca
lcu
rren
tin
com
eta
xex
pens
e10
,381
-8,6
56.3
145.
4-3
47.0
-8,8
04.6
-201
.6-0
.1%
-1,4
67.6
1,61
3.0
-1,2
10.0
863.
0
04St
ate
and
loca
lde
ferr
edin
com
eta
xex
pens
e2,
393
-424
.127
2.9
158.
7.
431.
60.
2%-7
16.1
989.
0-4
63.9
622.
6
05Fo
reig
ncu
rren
tin
com
eta
xex
pens
e(o
ther
than
WH
)64
9-1
,641
.312
4.2
1,26
0.5
-246
.11,
384.
70.
6%-5
5.2
179.
4-4
73.5
1,73
4.0
06Fo
reig
nde
ferr
edin
com
eta
xex
pens
e14
4-1
75.8
21.9
153.
9.
175.
90.
1%-1
1.7
33.6
-219
.337
3.2
07Fo
reig
nw
ithho
ldin
gta
xes
490
-522
.910
.235
8.4
-164
.236
8.7
0.2%
-31.
541
.7-5
9.5
417.
9
08In
cent
ive
stoc
kop
tions
585
.-1
50.5
-2,3
29.8
-2,7
61.6
-2,4
80.3
-1.1
%-2
92.8
142.
3-2
,442
.111
2.3
09N
onqu
alif
ied
stoc
kop
tion
s1,
375
-1,8
28.0
-610
.9-1
3,40
3.6
-15,
732.
6-1
4,01
4.5
-6.2
%-1
,839
.21,
228.
3-1
3,45
6.2
52.7
10O
ther
equi
ty-b
ased
com
pens
atio
n80
3-4
,908
.782
.0-1
,381
.8-6
,332
.8-1
,299
.8-0
.6%
-1,2
30.8
1,31
2.8
-1,5
27.5
145.
7
11M
eals
and
ente
rtai
nmen
t12
,958
-5,9
29.3
15.2
2,30
1.7
-3,3
87.0
2,31
7.0
1.0%
-0.5
15.7
-1.0
2,30
2.7
12Fi
nes
and
pena
lties
3,83
5-8
28.2
7.4
663.
9-9
1.2
671.
30.
3%-0
.68.
0-5
.366
9.2
13Pu
nitiv
eda
mag
es38
-29.
5-6
.125
.2-4
.319
.10.
0%-6
.10.
00.
025
.2
14Pa
rach
ute
paym
ents
16-1
7.8
0.8
11.3
-5.7
12.1
0.0%
-0.3
1.1
-9.2
20.5
15C
ompe
nsat
ion
with
sect
ion
162(
m)
limita
tion
400
-2,6
76.5
4.6
385.
5-2
,310
.239
0.1
0.2%
-18.
022
.6-2
.938
8.5
16P
ensi
onan
dpr
ofit
-sha
ring
7,58
5-1
9,96
8.3
-3,7
02.0
-253
.0-2
3,90
5.1
-3,9
55.1
-1.7
%-7
,360
.63,
658.
6-3
19.0
65.9
17O
ther
post
-ret
irem
ent
bene
fits
6,02
0-1
1,02
4.2
2,42
8.6
-355
.5-8
,961
.62,
073.
10.
9%-7
57.1
3,18
5.8
-367
.311
.7
18D
efer
red
com
pens
atio
n2,
401
-22,
322.
81,
932.
8-9
7.7
-20,
483.
91,
835.
10.
8%-5
08.9
2,44
1.7
-213
.211
5.5
19C
hari
tabl
eco
ntri
butio
nof
cash
and
tang
ible
prop
10,1
57-2
,810
.2-1
1.1
-494
.9-3
,310
.8-5
06.0
-0.2
%-9
3.6
82.5
-528
.433
.5
20C
hari
tabl
eco
ntri
butio
nof
inta
ngib
lepr
oper
ty23
3-1
28.0
-29.
6-3
1.4
-169
.3-6
1.1
-0.0
%-3
0.5
0.8
-32.
51.
1
21C
hari
tabl
eco
ntri
butio
nlim
itatio
n4,
221
.42
5.6
263.
066
6.3
688.
60.
3%-3
3.8
459.
5-0
.326
3.3
22C
hari
tabl
eco
ntri
butio
nca
rryf
orw
ard
used
1,18
1.
-157
.7-4
3.8
-197
.9-2
01.5
-0.1
%-1
62.9
5.2
-43.
90.
1
23C
urre
ntac
q./r
eorg
.in
vest
men
tba
nkin
gfe
es66
-46.
9-1
7.7
5.8
-58.
7-1
1.9
-0.0
%-2
7.4
9.7
-19.
225
.0
24C
urre
ntac
q./r
eorg
.le
gal/a
ccou
ntin
gfe
es22
4-4
71.6
50.0
122.
9-2
98.6
172.
90.
1%-6
1.8
111.
8-8
.813
1.8
25C
urre
ntac
q./r
eorg
.ot
her
cost
s22
2-9
76.5
377.
572
.8-5
30.9
450.
40.
2%-1
64.2
541.
8-3
2.4
105.
3
26A
mor
tizat
ion/
impa
irm
ent
ofgo
odw
ill2,
424
-8,3
96.3
-4,9
86.3
5,40
2.4
-7,8
77.2
416.
10.
2%-6
,558
.81,
572.
5-3
00.9
5,70
3.4
27A
mor
tizat
ion
ofac
q./r
eorg
.an
dst
artu
pco
sts
1,74
8-1
,000
.6-3
63.6
68.5
-1,3
94.2
-295
.0-0
.1%
-799
.443
5.8
-23.
992
.4
28O
ther
amor
tiza
tion
orim
pair
men
tw
rite
-off
s7,
536
-29,
554.
17,
970.
0-4
29.1
-21,
962.
87,
540.
93.
3%-7
,649
.515
,619
.5-2
,066
.61,
637.
5
29Se
c19
8en
viro
nmen
tal
rem
edia
tion
cost
s92
-150
.6-1
4.9
0.6
-167
.8-1
4.3
-0.0
%-9
0.6
75.7
0.0
0.6
30D
eple
tion
463
-3,5
10.7
822.
1-1
,216
.2-3
,922
.5-3
94.1
-0.2
%-1
,082
.01,
904.
1-1
,224
.78.
5
31D
epre
ciat
ion
14,1
90-9
7,79
4.7
-48,
729.
435
7.5
-146
,125
.5-4
8,37
1.9
-21.
2%-5
3,93
4.5
5,20
5.1
-58.
141
5.6
32B
adde
btex
pens
e10
,230
-24,
055.
9-1
,338
.2-5
35.8
-25,
919.
2-1
,874
.0-0
.8%
-4,8
89.4
3,55
1.2
-597
.161
.3
33C
orpo
rate
owne
dlif
ein
sura
nce
prem
ium
s2,
657
-70.
420
.4-3
0.9
-80.
6-1
0.5
-0.0
%-2
9.6
50.0
-179
.914
9.1
34Pu
rcha
seve
rsus
leas
e17
8-6
21.5
-380
.3-6
5.8
-1,1
67.5
-446
.2-0
.2%
-549
.316
9.0
-66.
00.
2
35O
ther
expe
nse/
dedc
tnite
ms
with
diff
eren
ces
12,7
91-7
34,2
88.1
29,4
70.4
-2,3
92.1
-707
,104
.127
,078
.311
.9%
-26,
076.
855
,547
.2-1
1,33
2.2
8,94
0.2
**SU
BT
OTA
L.
-1,0
57,5
75.5
-13,
840.
658
,524
.7-1
,012
,812
.744
,684
.119
.6%
-117
,429
.310
3,58
8.8
-51,
247.
610
9,77
2.3
**A
mou
ntto
Rec
onci
le.
-5.0
1.1
0.7
-9.4
1.8
0.0%
-0.1
1.2
0.0
0.7
36To
tal
expe
nse
item
s(c
ombi
nelin
es1-
35)
15,1
69-1
,057
,580
.5-1
3,83
9.5
58,5
25.4
-1,0
12,8
22.2
44,6
85.9
19.6
%-1
17,4
29.5
103,
590.
0-5
1,24
7.6
109,
773.
0
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.72
,745
.7-2
,475
.6-7
0,32
0.5
.-7
2,79
6.1
-32.
0%89
8.2
-3,3
73.8
13,9
62.6
-84,
283.
1
>>
Tota
lex
pens
eite
ms
befo
reFe
dera
lta
xex
pens
e.
-984
,834
.8-1
6,31
5.1
-11,
795.
1-1
,012
,822
.2-2
8,11
0.2
-12.
3%-1
16,5
31.3
100,
216.
2-3
7,28
5.0
25,4
89.9
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 975
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e11
.Agg
rega
te20
04Sc
hedu
leM
-3D
ata
for
U.S
.C
orpo
rati
ons
Wit
hR
econ
cila
ble
Dat
a:C
olum
nsA
and
DB
lank
Dol
lar
amou
nts
inm
illio
ns.T
able
amou
nts
may
not
add
due
toro
undi
ng.A
dvan
cefi
leda
ta.V
alue
sm
aydi
ffer
from
Fin
alfi
lean
dof
fici
alSO
IP
ublic
atio
n16
valu
es.
Pan
el1
of3
Pop
ulat
ion
Ove
rvie
w
Ret
urns
11,6
81
Tota
lAss
ets
20,1
33,0
44.5
Tax
Les
sC
redi
ts85
,371
.4
Tax
Net
Inco
me
322,
707.
8
Est
imat
edIC
D33
,999
.2
Oth
erSO
IA
djus
tmen
ts-1
24.8
Part
IIL
ine
30C
olA
356,
582.
2
Tax
Exe
mpt
Inte
rest
7,30
7.5
Par
tI
FIN
AN
CIA
LST
AT
EM
EN
TD
AT
AF
req
Inco
me
Neg
Pos
%B
ook
Inco
me
Neg
Pos
4W
orld
wid
eco
nsol
idat
edne
tin
com
e(l
oss)
10,5
4433
3,16
6.9
-90,
679.
542
3,84
6.5
103.
4%-2
8.1%
131.
5%
5In
com
e(lo
ss)
from
noni
nclu
dibl
efo
reig
nen
titie
s1,
698
-145
,302
.0-2
18,4
47.9
73,1
45.9
-45.
1%-6
7.8%
22.7
%
6In
com
e(lo
ss)
from
noni
nclu
dibl
eU
.S.
entit
ies
736
-65,
765.
9-7
7,64
8.5
11,8
82.6
-20.
4%-2
4.1%
3.7%
7In
com
e(lo
ss)
ofot
her
incl
udib
leco
rpor
atio
ns16
43,
458.
2-8
91.9
4,35
0.1
1.1%
-0.3
%1.
4%
8A
djus
tco
nsol
idat
ion
elim
inat
ions
(bec
ause
oflin
es5-
7)79
814
0,09
0.4
-8,0
14.9
148,
105.
343
.5%
-2.5
%46
.0%
9A
djus
tbo
okye
arto
tax
year
205
4,21
7.7
-1,0
26.2
5,24
3.9
1.3%
-0.3
%1.
6%
10O
ther
adju
stm
ents
577
50,7
46.9
-10,
114.
660
,861
.515
.7%
-3.1
%18
.9%
**E
nter
edon
line
11on
ly(B
ooks
and
Rec
ords
)1,
106
1,73
4.6
-6,4
41.2
8,17
5.9
0.5%
-2.0
%2.
5%
**SU
BT
OTA
L.
322,
346.
810
0.0%
**A
mou
ntto
Rec
onci
le.
-132
.1-0
.0%
11N
etin
com
epe
rin
com
est
atem
ent
ofin
clib
leco
rpor
atio
ns11
,681
322,
214.
7-9
2,67
2.1
414,
886.
810
0.0%
%P
reta
xB
ook
Inco
me
Neg
Pos
**A
mou
ntto
Rec
onci
le.
-0.6
-0.0
%
**N
etin
com
epe
rPa
rtII
Lin
e30
Col
umn
A.
322,
214.
175
.0%
**R
ever
seFe
dera
lta
xex
pens
e.
107,
451.
525
.0%
**Pr
etax
book
Inco
me
.42
9,66
5.6
100.
0%
**Te
mpo
rary
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-6
8,00
5.9
-415
,419
.034
7,41
3.1
-15.
8%-9
6.7%
80.9
%
**Pe
rman
ent
diff
eren
cebe
fore
Fede
ral
tax
expe
nse
.-5
,077
.5-1
87,0
66.8
181,
989.
3-1
.2%
-43.
5%42
.4%
**N
etta
xin
com
epe
rPa
rtII
Lin
e30
Col
umn
D.
356,
582.
283
.0%
**SO
Ire
mov
edIC
D.
-33,
999.
2-7
.9%
**O
ther
SOI
adju
stm
ents
.12
4.8
0.0%
**Ta
xne
tin
com
ere
port
edby
SOI
.32
2,70
7.8
75.1
%
COMMENTARY / SPECIAL REPORT
976 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e11
.A
ggre
gate
2004
Sche
dule
M-3
Dat
afo
rU
.S.
Cor
pora
tion
sW
ith
Rec
onci
labl
eD
ata:
Col
umns
Aan
dD
Bla
nkD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el2
of3
Par
tII
INC
OM
EIT
EM
SF
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
Inco
me
(los
s)fr
omeq
uity
met
hod
fore
ign
corp
orat
ions
387
0.0
-2,2
35.3
-2,2
10.4
.-4
,445
.7-1
.0%
-2,3
97.7
162.
4-3
,109
.289
8.8
02G
ross
fore
ign
divi
dend
sno
tpr
evio
usly
taxe
d36
40.
02,
841.
16,
279.
10.
09,
120.
22.
1%-1
,419
.64,
260.
7-5
,871
.412
,150
.4
03Su
bpar
tF,
QE
F,an
dsi
mila
rin
com
ein
clus
ions
533
.6,
450.
318
,397
.30.
024
,847
.65.
8%-1
9.5
6,46
9.8
-17.
818
,415
.1
04Se
ctio
n78
gros
s-up
424
.45
4.4
17,1
37.8
0.0
17,5
92.2
4.1%
0.0
454.
4-0
.317
,138
.1
05G
ross
fore
ign
dist
ribu
tions
prev
ious
lyta
xed
106
0.0
-4,7
76.9
-10,
024.
10.
0-1
4,80
1.0
-3.4
%-4
,858
.982
.0-1
0,05
6.8
32.7
06In
com
e(l
oss)
from
equi
tym
etho
dU
.S.
corp
orat
ions
613
0.0
-5,4
90.7
-9,6
18.1
.-1
5,10
8.8
-3.5
%-6
,791
.41,
300.
7-1
1,37
2.8
1,75
4.7
07U
.S.
divi
dend
sno
tel
imin
ated
inta
xco
nsol
idat
ion
966
0.0
1,36
6.8
24,9
73.1
0.0
26,3
39.9
6.1%
-2,3
96.7
3,76
3.5
-9,4
19.5
34,3
92.7
08M
inor
ityin
tere
stfo
rin
clud
ible
corp
orat
ions
227
0.0
15.1
316.
5.
331.
50.
1%-6
4.6
79.7
-210
.352
6.7
09In
com
e(l
oss)
from
U.S
.pa
rtne
rshi
ps2,
210
0.0
4,05
2.1
5,45
9.5
0.0
9,51
1.6
2.2%
-14,
033.
318
,085
.4-1
,629
.27,
088.
7
10In
com
e(l
oss)
from
fore
ign
part
ners
hips
245
0.0
302.
121
.00.
032
3.1
0.1%
-1,6
88.4
1,99
0.5
-300
.932
2.0
11In
com
e(l
oss)
from
othe
rpa
ss-t
hrou
ghen
titie
s43
30.
088
.7-2
46.6
0.0
-157
.9-0
.0%
-387
.547
6.2
-359
.911
3.4
12It
ems
rela
ting
tore
port
able
tran
sact
ions
159
0.0
-25,
070.
5-7
,412
.20.
0-3
2,48
2.7
-7.6
%-2
5,44
6.8
376.
2-7
,589
.217
7.0
13In
tere
stin
com
e2,
812
0.0
-1,2
74.8
-8,1
39.2
0.0
-9,4
14.0
-2.2
%-6
,914
.75,
639.
9-8
,711
.057
1.8
14To
tal
accr
ual
toca
shad
just
men
t40
40.
020
.5-5
.90.
014
.70.
0%-1
14.5
135.
0-8
.22.
3
15H
edgi
ngtr
ansa
ctio
ns28
70.
019
0.4
-282
.20.
0-9
1.7
-0.0
%-5
,376
.15,
566.
5-3
87.9
105.
7
16M
ark-
to-m
arke
tin
com
e(l
oss)
396
0.0
1,58
5.9
-798
.60.
078
7.3
0.2%
-2,6
39.6
4,22
5.5
-799
.00.
4
17In
vent
ory
valu
atio
nad
just
men
ts3,
325
0.0
42,7
44.7
-497
.30.
042
,247
.49.
8%-6
,771
.649
,516
.3-2
,162
.01,
664.
6
18Sa
leve
rsus
leas
e(f
orse
llers
and/
orle
ssor
s)15
00.
019
,719
.1-1
,762
.70.
017
,956
.54.
2%-7
34.3
20,4
53.4
-1,7
69.7
7.1
19Se
ctio
n48
1(a)
adju
stm
ents
1,00
3.
-209
.222
.40.
0-1
86.8
-0.0
%-2
,402
.22,
193.
0-1
4.5
37.0
20U
near
ned/
defe
rred
reve
nue
1,89
30.
072
9.6
-98.
10.
063
1.5
0.1%
-3,8
42.0
4,57
1.5
-144
.446
.4
21In
com
ere
cogn
ition
from
long
-ter
mco
ntra
cts
166
0.0
-6.9
21.1
0.0
14.3
0.0%
-258
.325
1.4
-1.2
22.3
22O
rigi
nal
issu
edi
scou
ntan
dot
her
impu
ted
inte
rest
244
0.0
182.
54.
20.
018
6.6
0.0%
-2,0
08.8
2,19
1.3
-87.
992
.0
23a
Boo
kdi
spos
itio
nof
asse
tsot
her
than
inve
ntor
y4,
159
0.0
-32,
428.
3-2
,773
.3.
-35,
201.
6-8
.2%
-38,
633.
66,
205.
3-3
,693
.191
9.8
23b
Gro
ssca
pita
lga
ins
Sch.
D,
excl
udin
gfl
ow-t
hrou
gh1,
375
.25
,849
.97,
108.
50.
032
,958
.47.
7%-2
61.4
26,1
11.3
-198
.87,
307.
3
23c
Gro
ssca
pita
llo
ssSc
h.D
,ex
clud
ing
flow
-thr
ough
640
.-8
,215
.5-1
,492
.00.
0-9
,707
.5-2
.3%
-8,6
77.9
462.
4-1
,524
.132
.1
23d
Net
gain
/loss
repo
rted
onFo
rm47
97,
line
175,
474
.17
,032
.992
5.6
0.0
17,9
58.5
4.2%
-6,7
48.1
23,7
81.1
-191
.91,
117.
5
23e
Aba
ndon
men
tlo
sses
337
.-9
59.1
-54.
40.
0-1
,013
.5-0
.2%
-1,3
49.5
390.
4-6
0.5
6.1
23f
Wor
thle
ssst
ock
loss
es12
4.
-676
.3-1
,285
.90.
0-1
,962
.3-0
.5%
-683
.06.
6-1
,287
.21.
2
23g
Oth
erdi
spos
ition
sex
clud
ing
inve
ntor
y83
9.
1,41
8.1
187.
90.
01,
606.
00.
4%-4
08.4
1,82
6.6
-15.
420
3.3
24D
isal
low
edca
pita
llo
ssin
exce
ssof
capi
tal
gain
s62
8.
8,78
3.5
1,23
7.7
0.0
10,0
21.1
2.3%
-19.
78,
803.
2-2
0.4
1,25
8.1
25U
tiliz
atio
nof
capi
tal
loss
carr
yfor
war
d53
3.
-3,0
34.9
-1,9
00.0
0.0
-4,9
34.9
-1.1
%-3
,035
.00.
1-1
,900
.10.
0
26O
ther
inco
me
(los
s)it
ems
wit
hdi
ffer
ence
s5,
221
0.0
-53,
848.
8-5
1,60
4.4
0.0
-105
,453
.2-2
4.5%
-82,
487.
528
,638
.6-6
1,55
4.7
9,95
0.3
**SU
BT
OTA
L.
0.0
-4,3
99.4
-18,
113.
50.
0-2
2,51
3.0
-5.2
%-2
32,8
70.4
228,
471.
0-1
34,4
69.2
116,
355.
7
**A
mou
ntto
Rec
onci
le.
0.0
-5.2
65.1
0.0
59.9
0.0%
-5.6
0.4
0.0
65.1
27To
tal
inco
me
item
s(c
ombi
nelin
es1
thru
26)
9,73
60.
0-4
,404
.6-1
8,04
8.5
0.0
-22,
453.
1-5
.2%
-232
,876
.122
8,47
1.4
-134
,469
.211
6,42
0.8
28To
tal
expe
nse
item
s(f
rom
Part
III
line
36)
11,3
410.
0-5
8,60
5.1
115,
423.
80.
0
**E
xpen
sebe
fore
Fede
ral
tax
expe
nse
..
..
.-5
0,63
2.8
-11.
8%-1
82,2
37.5
118,
922.
3-5
2,42
9.2
65,1
11.6
29O
ther
item
sw
ithno
diff
eren
ces
00.
0.
.0.
0
**SU
BT
OTA
L.
0.0
-63,
009.
797
,375
.40.
0
**A
mou
ntto
Rec
onci
le.
322,
214.
1-2
86.1
288.
635
6,58
2.2
2.5
0.0%
-305
.419
.3-1
68.4
456.
9
30R
econ
cilia
tion
tota
ls(c
ombi
nelin
es27
-29)
11,6
8132
2,21
4.1
-63,
295.
897
,663
.935
6,58
2.2
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.10
7,45
1.5
-4,7
10.1
-102
,741
.4.
>>P
reta
xbo
okin
com
ean
dM
-3di
ffer
ence
s.
429,
665.
6-6
8,00
5.9
-5,0
77.5
356,
582.
2-7
3,08
3.3
-17.
0%-4
15,4
19.0
347,
413.
1-1
87,0
66.8
181,
989.
3
>>
Per
cent
ofP
reta
xbo
ok10
0.0%
-15.
8%-1
.2%
83.0
%-1
7.0%
-96.
7%80
.9%
-43.
5%42
.4%
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 977
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Tabl
e11
.A
ggre
gate
2004
Sche
dule
M-3
Dat
afo
rU
.S.
Cor
pora
tion
sW
ith
Rec
onci
labl
eD
ata:
Col
umns
Aan
dD
Bla
nkD
olla
ram
ount
sin
mill
ions
.Tab
leam
ount
sm
ayno
tad
ddu
eto
roun
ding
.Adv
ance
file
data
.Val
ues
may
diff
erfr
omF
inal
file
and
offi
cial
SOI
Pub
licat
ion
16va
lues
.
Pan
el3
of3
Par
tII
IE
XP
EN
SEIT
EM
S(s
ign
mat
ches
Par
tII
)F
req
Col
AC
olB
Col
CC
olD
Tot
Dif
f%
PT
BN
egB
Pos
BN
egC
Pos
C01
U.S
.cu
rren
tin
com
eta
xex
pens
e8,
221
0.0
5,14
5.0
96,9
90.1
.10
2,13
5.1
23.8
%-1
52.0
5,29
7.0
-9,4
02.6
106,
392.
7
02U
.S.
defe
rred
inco
me
tax
expe
nse
4,12
50.
0-4
34.9
5,75
1.3
.5,
316.
41.
2%-1
,626
.51,
191.
6-1
9,03
2.3
24,7
83.6
03St
ate
and
loca
lcu
rren
tin
com
eta
xex
pens
e5,
059
0.0
431.
4-1
41.0
0.0
290.
40.
1%-2
,581
.03,
012.
4-1
,426
.01,
285.
1
04St
ate
and
loca
lde
ferr
edin
com
eta
xex
pens
e2,
183
0.0
-747
.616
4.1
.-5
83.5
-0.1
%-2
,084
.41,
336.
8-6
22.0
786.
1
05Fo
reig
ncu
rren
tin
com
eta
xex
pens
e(o
ther
than
WH
)56
20.
048
1.5
12,0
70.6
0.0
12,5
52.2
2.9%
-132
.161
3.6
-323
.712
,394
.4
06Fo
reig
nde
ferr
edin
com
eta
xex
pens
e11
80.
0-1
39.1
64.6
.-7
4.5
-0.0
%-2
21.6
82.6
-442
.350
6.9
07Fo
reig
nw
ithho
ldin
gta
xes
336
0.0
-170
.12,
002.
50.
01,
832.
40.
4%-1
86.3
16.2
-125
.32,
127.
8
08In
cent
ive
stoc
kop
tions
770
.-2
08.4
-3,2
57.3
0.0
-3,4
65.6
-0.8
%-4
42.0
233.
6-3
,368
.811
1.6
09N
onqu
alif
ied
stoc
kop
tion
s1,
498
0.0
-1,0
70.8
-23,
932.
20.
0-2
5,00
3.0
-5.8
%-2
,889
.61,
818.
8-2
4,19
6.2
264.
0
10O
ther
equi
ty-b
ased
com
pens
atio
n98
90.
01,
474.
2-3
,062
.00.
0-1
,587
.8-0
.4%
-821
.62,
295.
8-3
,629
.656
7.7
11M
eals
and
ente
rtai
nmen
t10
,050
0.0
0.2
3,02
2.5
0.0
3,02
2.6
0.7%
-12.
412
.6-7
.53,
030.
0
12Fi
nes
and
pena
lties
3,49
80.
067
.61,
296.
80.
01,
364.
40.
3%-0
.668
.1-2
4.9
1,32
1.8
13Pu
nitiv
eda
mag
es21
0.0
972.
50.
80.
097
3.3
0.2%
-1.5
974.
00.
00.
8
14Pa
rach
ute
paym
ents
250.
05.
090
.30.
095
.30.
0%-6
.311
.30.
090
.3
15C
ompe
nsat
ion
with
sect
ion
162(
m)
limita
tion
316
0.0
15.2
755.
20.
077
0.5
0.2%
-3.8
19.1
-3.7
758.
9
16P
ensi
onan
dpr
ofit
-sha
ring
1,90
40.
0-1
1,63
4.5
-1,0
05.3
0.0
-12,
639.
8-2
.9%
-17,
835.
26,
200.
6-1
,100
.695
.3
17O
ther
post
-ret
irem
ent
bene
fits
978
0.0
831.
5-1
,351
.20.
0-5
19.7
-0.1
%-3
,595
.34,
426.
8-1
,359
.17.
9
18D
efer
red
com
pens
atio
n3,
092
0.0
2,08
0.3
-98.
10.
01,
982.
10.
5%-2
,456
.94,
537.
1-2
50.9
152.
8
19C
hari
tabl
eco
ntri
butio
nof
cash
and
tang
ible
prop
1,42
90.
012
6.5
-391
.90.
0-2
65.4
-0.1
%-1
50.5
277.
0-4
23.3
31.4
20C
hari
tabl
eco
ntri
butio
nof
inta
ngib
lepr
oper
ty46
0.0
-20.
8-4
4.0
0.0
-64.
8-0
.0%
-22.
92.
2-4
5.1
1.1
21C
hari
tabl
eco
ntri
butio
nlim
itatio
n3,
251
.60
8.1
234.
50.
084
2.6
0.2%
-42.
465
0.4
-2.4
237.
0
22C
hari
tabl
eco
ntri
butio
nca
rryf
orw
ard
used
844
.-4
83.8
-141
.60.
0-6
25.5
-0.1
%-4
85.0
1.1
-141
.70.
0
23C
urre
ntac
q./r
eorg
.in
vest
men
tba
nkin
gfe
es60
0.0
-58.
420
.50.
0-3
7.9
-0.0
%-9
6.5
38.1
-56.
577
.0
24C
urre
ntac
q./r
eorg
.le
gal/a
ccou
ntin
gfe
es24
00.
025
.225
4.4
0.0
279.
60.
1%-7
4.8
100.
0-1
0.6
265.
1
25C
urre
ntac
q./r
eorg
.ot
her
cost
s25
80.
011
2.9
112.
80.
022
5.7
0.1%
-454
.256
7.0
-375
.648
8.4
26A
mor
tizat
ion/
impa
irm
ent
ofgo
odw
ill2,
511
0.0
-5,5
39.8
3,41
0.0
0.0
-2,1
29.8
-0.5
%-8
,002
.82,
463.
0-9
40.5
4,35
0.4
27A
mor
tizat
ion
ofac
q./r
eorg
.an
dst
artu
pco
sts
1,87
10.
0-2
6.1
120.
30.
094
.30.
0%-8
75.0
848.
9-5
3.7
174.
1
28O
ther
amor
tiza
tion
orim
pair
men
tw
rite
-off
s4,
169
0.0
22,6
92.2
19,2
08.9
0.0
41,9
01.1
9.8%
-9,1
21.8
31,8
14.1
-329
.919
,538
.8
29Se
c19
8en
viro
nmen
tal
rem
edia
tion
cost
s89
0.0
396.
1-1
.20.
039
4.9
0.1%
-182
.757
8.8
-1.3
0.1
30D
eple
tion
289
0.0
1,04
5.8
-763
.50.
028
2.3
0.1%
-1,4
08.7
2,45
4.5
-844
.881
.3
31D
epre
ciat
ion
9,83
40.
0-6
0,43
4.7
25.1
0.0
-60,
409.
7-1
4.1%
-70,
960.
210
,525
.5-1
26.7
151.
7
32B
adde
btex
pens
e6,
714
0.0
-4,7
74.2
-146
.50.
0-4
,920
.7-1
.1%
-10,
724.
95,
950.
7-2
30.4
83.9
33C
orpo
rate
owne
dlif
ein
sura
nce
prem
ium
s2,
530
0.0
-57.
9-3
03.3
0.0
-361
.2-0
.1%
-73.
615
.7-5
91.5
288.
1
34Pu
rcha
seve
rsus
leas
e26
70.
0-1
85.4
-16.
50.
0-2
01.9
-0.0
%-5
87.2
401.
8-1
6.7
0.2
35O
ther
expe
nse/
dedc
tnite
ms
with
diff
eren
ces
9,67
20.
0-9
,032
.94,
281.
90.
0-4
,751
.0-1
.1%
-45,
493.
936
,461
.0-1
1,34
9.2
15,6
31.1
**SU
BT
OTA
L.
0.0
-58,
508.
211
5,22
1.6
0.0
56,7
13.3
13.2
%-1
83,8
06.0
125,
297.
8-8
0,85
5.7
196,
077.
3
**A
mou
ntto
Rec
onci
le.
0.0
-96.
920
2.2
0.0
105.
40.
0%-2
10.0
113.
2-8
.421
0.6
36To
tal
expe
nse
item
s(c
ombi
nelin
es1-
35)
11,3
410.
0-5
8,60
5.1
115,
423.
80.
056
,818
.713
.2%
-184
,016
.112
5,41
1.0
-80,
864.
119
6,28
7.9
>>
Rev
erse
fede
ral
inco
me
tax
expe
nse
.0.
0-4
,710
.1-1
02,7
41.4
.-1
07,4
51.5
-25.
0%1,
778.
5-6
,488
.628
,435
.0-1
31,1
76.3
>>
Tota
lex
pens
eite
ms
befo
reFe
dera
lta
xex
pens
e.
0.0
-63,
315.
212
,682
.40.
0-5
0,63
2.8
-11.
8%-1
82,2
37.5
118,
922.
3-5
2,42
9.2
65,1
11.6
COMMENTARY / SPECIAL REPORT
978 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Exhibit 1: 2004 Form 1120 Schedule M-3
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 979
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Exhibit 1: 2004 Form 1120 Schedule M-3(Continued)
COMMENTARY / SPECIAL REPORT
980 TAX NOTES, September 11, 2006
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.
Exhibit 1: 2004 Form 1120 Schedule M-3(Continued)
COMMENTARY / SPECIAL REPORT
TAX NOTES, September 11, 2006 981
(C) T
ax Analysts 2006. A
ll rights reserved. Tax A
nalysts does not claim copyright in any public dom
ain or third party content.