Intel 2007 Annual Report Download - page 87

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of
income before income taxes was as follows:
During 2007, the tax benefit that we realized for the tax deduction from option exercises and other awards totaled $265 million
($139 million in 2006 and $351 million in 2005).
The American Jobs Creation Act of 2004 (the Jobs Act) created a temporary incentive for U.S. corporations to repatriate
accumulated income earned abroad by providing an 85% dividends-received deduction for certain dividends from controlled
non-U.S. corporations. During 2005, our Chief Executive Officer and Board of Directors approved a domestic reinvestment
plan under which we repatriated $6.2 billion in earnings outside the U.S. pursuant to the Jobs Act. We recorded additional tax
expense in 2005 of approximately $265 million related to this decision to repatriate non-U.S. earnings.
78
(In Percentages)
2007
2006
2005
Statutory federal income tax rate
35.0
%
35.0
%
35.0
%
Increase (reduction) in rate resulting from:
State taxes, net of federal benefits
0.6
0.8
1.3
Non
-
U.S.
income taxed at different rates
(4.7
)
(4.3
)
(2.0
)
Settlements
(5.3
)
—
—
Research and development tax credits
(1.3
)
(0.8
)
(0.5
)
Domestic manufacturing deduction benefit
(1.1
)
(0.9
)
(0.8
)
Export sales benefit
—
(
2.1
)
(2.8
)
Repatriation of prior years
’
permanently reinvested earnings
—
—
1.8
Share
-
based compensation
0.3
0.7
—
Other
0.4
0.2
(0.7
)
Income tax rate
23.9
%
28.6
%
31.3
%