Intel 2000 Annual Report Download - page 34

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unrealized gain on available-for-sale investments.
Provision for taxes
Income before taxes and the provision for taxes consisted of the following:
The tax benefit associated with dispositions from employee stock plans reduced taxes currently payable for 2000 by $887 million
($506 million and $415 million for 1999 and 1998, respectively).
The provision for taxes reconciles to the amount computed by applying the statutory federal rate of 35% to income before taxes as follows:
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.
Significant components of the company's deferred tax assets and liabilities at fiscal year-ends were as follows:
(In millions)
2000
1999
1998
Income before taxes:
U.S. $
11,162
$
7,239
$
6,677
Foreign
3,979
3,989
2,460
Total income before taxes
$
15,141
$
11,228
$
9,137
Provision for taxes:
Federal:
Current $
3,809
$
3,356
$
2,321
Deferred
(65
)
(162
)
145
3,744
3,194
2,466
State:
Current
454
393
320
Foreign:
Current
473
384
351
Deferred
(65
)
(57
)
(68
)
408
327
283
Total provision for taxes
$
4,606
$
3,914
$
3,069
Effective tax rate
30.4
%
34.9
%
33.6
%
(In millions)
2000
1999
1998
Computed expected tax
$
5,299
$
3,930
$
3,198
State taxes, net of federal benefits
295
255
208
Foreign income taxed at different rates
(363
)
(239
)
(339
)
Non
-
deductible acquisition
-
related costs
444
274
74
Reversal of previously accrued taxes
(600
)
—
—
Other
(469
)
(306
)
(72
)
Provision for taxes
$
4,606
$
3,914
$
3,069
(In millions)
1999
2000