This excerpt taken from the GIS 10-Q filed Dec 19, 2007.
Effective Tax Rate
Our consolidated effective income tax rate is influenced by tax planning opportunities available to us in the various jurisdictions in which we operate. The effective tax rate for the second quarter of fiscal 2008 was 36.5 percent compared to 35.9 percent for the second quarter of fiscal 2007. The 0.6 percentage point increase in the effective tax rate is primarily due to a 1.8 percent reduction in the estimated value of tax credits and a 0.5 percent increase in the state tax rate which were partially offset by a 0.7 percent reduction of deferred taxes caused by a law change in Michigan, a 0.4 percent decrease related to additional domestic deductions, a 0.3 percent reduction related to additional foreign tax credits and 0.3 percent of miscellaneous other items.
The effective tax rate for the six-month period ended November 25, 2007 was 35.0 percent compared to 35.8 percent for the same period of fiscal 2007. The 0.8 percentage point decrease is primarily due to a 0.7 percent discrete tax decrease from international deferred foreign income taxes resulting from tax rate changes, a 1.0 percent benefit related to discrete and general foreign tax credits, a 0.4 percent decrease related to additional domestic deductions and 0.3 percent of miscellaneous other items. These were partially offset by a 1.1 percent reduction in the estimated value of other tax credits and a 0.5 percent increase in the state tax rate. The impact of the Michigan law change which impacted first and second quarters in offsetting amounts had no impact on the year to date effective tax rate.