Intel 2007 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2007 Intel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table summarizes the restructuring and asset impairment activity for 2006 and 2007:
We recorded the additional accruals, net of adjustments, as restructuring and asset impairment charges on the consolidated
statements of income. The remaining accrual as of December 29, 2007 was related to severance benefits that we recorded as a
current liability within accrued compensation and benefits.
From the third quarter of 2006 through the fourth quarter of 2007, we incurred a total of $1.1 billion in restructuring and asset
impairment charges related to this plan. These charges include a total of $527 million related to employee severance and
benefit arrangements due to the termination of approximately 9,900 employees, and $544 million in asset impairment charges.
We may incur additional restructuring charges in the future for employee severance and benefit arrangements, and facility-
related or other exit activities.
Note 17: Taxes
Income before taxes and the provision for taxes consisted of the following:
77
Employee Severance
(In Millions)
and Benefits
Asset Impairments
Total
Accrued restructuring balance as of December 31, 2005
$
—
$
—
$
—
Additional accruals
238
317
555
Adjustments
—
—
—
Cash payments
(190
)
—
(
190
)
Non
-
cash settlements
—
(
317
)
(317
)
Accrued restructuring balance as of December 30, 2006
$
48
$
—
$
48
Additional accruals
299
227
526
Adjustments
(10
)
—
(
10
)
Cash payments
(210
)
—
(
210
)
Non
-
cash settlements
—
(
227
)
(227
)
Accrued restructuring balance as of December 29, 2007
$
127
$
—
$
127
(Dollars in Millions)
2007
2006
2005
Income before taxes:
U.S.
$
6,520
$
4,532
$
10,397
Non
-
U.S.
2,646
2,536
2,213
Total income before taxes
$
9,166
$
7,068
$
12,610
Provision for taxes:
Current:
Federal
$
1,865
$
1,997
$
3,546
State
111
15
289
Non
-
U.S.
445
337
524
2,421
2,349
4,359
Deferred:
Federal
(140
)
(305
)
(360
)
Other
(91
)
(20
)
(53
)
(231
)
(325
)
(413
)
Total provision for taxes
$
2,190
$
2,024
$
3,946
Effective tax rate
23.9
%
28.6
%
31.3
%