Intel 2009 Annual Report Download - page 111

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 27: Taxes
Income before taxes and the provision for taxes consisted of the following:
The 2009 deferred provision for income taxes includes $46 million of charges due to a change in assessment of the
realizability of deferred tax assets of non-U.S. subsidiaries recognized prior to 2009.
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 (effective tax rate) was as follows:
During 2009, net income tax deficiencies attributable to equity-based compensation transactions that were allocated to
stockholders’ equity totaled $41 million (net benefits of $8 million in 2008 and $123 million in 2007).
100
(Dollars in Millions)
2009
2008
2007
Income before taxes:
U.S.
$
3,229
$
6,117
$
6,520
Non
-
U.S.
2,475
1,569
2,646
Total income before taxes
$
5,704
$
7,686
$
9,166
Provision for taxes:
Current:
Federal
$
604
$
2,781
$
1,865
State
(2
)
(38
)
111
Non
-
U.S.
336
345
445
Total current provision for taxes
$
938
$
3,088
$
2,421
Deferred:
Federal
355
(668
)
(140
)
Other
42
(26
)
(91
)
Total deferred provision for taxes
$
397
$
(694
)
$
(231
)
Total provision for taxes
$
1,335
$
2,394
$
2,190
Effective tax rate
23.4
31.1
%
23.9
(In Percentages)
2009
2008
2007
Statutory federal income tax rate
35.0
35.0
%
35.0
Increase (reduction) in rate resulting from:
Non
-
U.S.
income taxed at different rates
(12.4
)
(4.2
)
(4.7
)
European Commission fine
8.9
—
—
Settlements, effective settlements, and related remeasurements
(6.4
)
(1.3
)
(5.3
)
Research and development tax credits
(2.0
)
(1.4
)
(1.3
)
Domestic manufacturing deduction benefit
(1.5
)
(1.7
)
(1.1
)
Deferred tax asset valuation allowance
—
unrealized losses
0.2
3.4
—
Other
1.6
1.3
1.3
Effective tax rate
23.4
31.1
%
23.9