Intel 2001 Annual Report Download - page 52

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In December 2000, Intel contributed its Interactive Media Services division to Convera Corporation and invested $150 million in cash in exchange for 14.9 million voting and
12.2 million non-voting shares of Convera. Intel recognized a gain of $117 million on the portion of the business and related assets contributed to Convera in which Intel did not retain an
ownership interest. During 2001, Intel recorded a loss of approximately $39 million as its proportionate share of Convera's loss and recognized a combined net loss of $157 million on the
impairment and subsequent sale of the remaining investment.
Comprehensive income
The components of other comprehensive income and related tax effects were as follows:
The components of accumulated other comprehensive income, net of tax, were as follows:
Provision for taxes
Income before taxes and the provision for taxes consisted of the following:
Interest income $
615
$
920
$
618
Interest expense
(56
)
(35
)
(36
)
Gain (loss) on investment in Convera
(196
)
117
—
Other, net
30
(15
)
(4
)
Total
$
393
$
987
$
578
(In millions)
2001
2000
1999
Change in net unrealized gain on investments, net of tax of $187, $620 and $(2,026) in 2001, 2000 and 1999, respectively $
(347
) $
(1,153
) $
3,762
Less: adjustment for net gain or loss realized and included in net income, net of tax of $(99), $1,316 and $309 in 2001, 2000
and 1999, respectively
184
(2,443
)
(574
)
Change in net unrealized loss on derivatives, net of tax of $4 in 2001
(7
)
—
—
Other comprehensive income
$
(170
) $
(3,596
) $
3,188
(In millions)
2001
2000
Accumulated net unrealized gain on available
-
for
-
sale investments
$
32
$
195
Accumulated net unrealized loss on derivatives
(7
) —
Total accumulated other comprehensive income $
25
$
195
(In millions)
2001
2000
1999
Income (loss) before taxes:
U.S. $
(350
) $
11,162
$
7,239
Non
-U.S.
2,533
3,979
3,989
Total income before taxes
$
2,183
$
15,141
$
11,228
Provision for taxes:
Federal:
Current $
903
$
3,809
$
3,356
Deferred
(417
)
(65
)
(162
)
486
3,744
3,194
State:
Current
142
454
393
Non
-U.S.:
Current
366
473
384
Deferred
(102
)
(65
)
(57
)
264
408
327
Total provision for taxes $
892
$
4,606
$
3,914
Effective tax rate
40.9
%
30.4
%
34.9
%