nterpreting the Income Tax Expense Footnote The income tax footnote to the finan

Question

nterpreting the Income Tax Expense Footnote
The income tax footnote to the financial statements of FedEx Corporation follows.

The components of the provision for income taxes for the years ended May 31 were as follows:

(a)What is the amount of income tax expense reported in FedEx's 2013, 2012, and 2011 income statements?
2013 Income Tax Expense =

million
2012 Income Tax Expense =
2011 Income Tax Expense =

(b) What percentage of total tax expense is currently payable in each year? (Round your answers to the nearest whole number.)
2013=
2012=
2011=

($ millions) 2013 2012 2011 Current provision (benefit) Domestic     Federal $ 512 $ (120) $ 79     State and local 86 80 48 Foreign 170 181 198 768 141 325 Deferred provisions (benefit) Domestic     Federal 175 947 485     State and local (7) 21 12 Foreign (42) — (9) 126 968 488 Provision for income taxes $ 894 $ 1,109 $ 813

Explanation / Answer

Tax expense provision reported is the sum of current and deffered tax. a. Tax expense reported in FEDEX income statement 2011 2012 2013 Income Tax 813M 1.11B 894M Income Tax - Current Domestic 127M (40M) 598M Income Tax - Current Foreign 198M 181M 170M Income Tax - Deferred Domestic 497M 968M 168M Income Tax - Deferred Foreign (9M) 0 (42M) B. percentage of total tax expense is currently payable in each year 2013 85.91% (Provision for current tax/Provisions for income taxes) 2012 12.71% (Provision for current tax/Provisions for income taxes) 2011 39.98% (Provision for current tax/Provisions for income taxes) Provision for current tax need to be paid this year.Deffered tax means the company will get revenue after that it will pay the tax and not now.

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