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This excerpt taken from the SWY 10-Q filed Oct 20, 2005. NOTE F – TAXES ON INCOME
In the third quarter of 2005, the Company finalized its plan to repatriate $500 million of earnings from its Canadian subsidiary to the U.S. to take advantage of the lower effective tax rate allowed by the American Jobs Creation Act of 2004. The Canadian subsidiary will fund approximately half of the repatriated earnings with cash on hand and the remainder with borrowings. The U.S. parent company will use the repatriated earnings to pay down debt in the near term. Deferred taxes previously provided on Canadian earnings to be repatriated exceeded the tax costs to repatriate the earnings and resulted in a net reduction of $17 million in income tax expense in the third quarter of 2005.
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