Intel 2013 Annual Report Download - page 100

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95
Note 24: Income Taxes
Income Tax Provision
Income before taxes and the provision for taxes consisted of the following:
(Dollars in Millions) 2013 2012 2011
Income before taxes:
U.S. $ 9,374 $ 10,042 $ 14,659
Non-U.S. 3,237 4,831 3,122
Total income before taxes $ 12,611 $ 14,873 $ 17,781
Provision for taxes:
Current:
Federal $ 2,730 $ 2,539 $ 3,212
State 68 52 104
Non-U.S. 716 1,135 374
Total current provision for taxes $ 3,514 $ 3,726 $ 3,690
Deferred:
Federal $ (412) $ 129 $ 1,175
Other (111) 13 (26)
Total deferred provision for taxes $ (523) $ 142 $ 1,149
Total provision for taxes $ 2,991 $ 3,868 $ 4,839
Effective tax rate 23.7% 26.0% 27.2%
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) for each period was as follows:
2013 2012 2011
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 (5.8) (7.3) (4.4)
Research and development tax credits (3.5) — (1.0)
Domestic manufacturing deduction benefit (2.1) (2.1) (1.9)
Other 0.1 0.4 (0.5)
Effective tax rate 23.7% 26.0% 27.2%
The U.S. R&D tax credit was reenacted in January 2013 retroactive to the beginning of 2012. The full year 2012
impact of the U.S. R&D tax credit was recognized in the first quarter of 2013.
Income in certain non-U.S. countries is fully exempt from income taxes for a limited period of time due to eligible
activities and certain capital investment actions. These full tax exemptions expire at various dates through 2020;
however, the exemptions in certain countries are eligible for renewal. In 2013, the tax benefit attributable to tax
holidays was $213 million ($252 million for 2012 and $554 million for 2011) with a $0.04 impact on diluted earnings
per share ($0.05 for 2012 and $0.10 for 2011).
During 2013, net income tax benefits attributable to equity-based compensation transactions that were allocated to
stockholders’ equity totaled $3 million (net benefits of $137 million in 2012 and net deficiencies of $18 million in
2011).
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)