Cisco 2012 Annual Report Download - page 134

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Compensation Plan. A matching contribution equal to 4.5% of eligible compensation in excess of the Internal
Revenue Code limit for qualified plans for calendar year 2012 that is deferred by participants under the Deferred
Compensation Plan (with a $1.5 million cap on eligible compensation) will be made to eligible participants’
accounts at the end of calendar year 2012. The deferred compensation liability under the Deferred Compensation
Plan, together with a deferred compensation plan assumed from Scientific-Atlanta, was approximately $355
million and $375 million as of July 28, 2012 and July 30, 2011, respectively, and was recorded primarily in other
long-term liabilities.
15. Income Taxes
(a) Provision for Income Taxes
The provision for income taxes consists of the following (in millions):
Years Ended July 28, 2012 July 30, 2011 July 31, 2010
Federal:
Current ............................. $1,836 $ 914 $1,469
Deferred ............................ (270) (168) (435)
1,566 746 1,034
State:
Current ............................. 119 49 186
Deferred ............................ (53) 83 —
66 132 186
Foreign:
Current ............................. 477 529 470
Deferred ............................ 9(72) (42)
486 457 428
Total ........................... $2,118 $1,335 $1,648
Income before provision for income taxes consists of the following (in millions):
Years Ended July 28, 2012 July 30, 2011 July 31, 2010
United States ............................. $ 3,235 $1,214 $1,102
International ............................. 6,924 6,611 8,313
Total ............................... $10,159 $7,825 $9,415
The items accounting for the difference between income taxes computed at the federal statutory rate and the
provision for income taxes consist of the following:
Years Ended July 28, 2012 July 30, 2011 July 31, 2010
Federal statutory rate ...................... 35.0% 35.0% 35.0%
Effect of:
State taxes, net of federal tax benefit ...... 0.4 1.5 1.4
Foreign income at other than U.S. rates .... (15.6) (19.4) (19.3)
Tax credits .......................... (0.4) (3.0) (0.5)
Transfer pricing adjustment related to share-
based compensation ................. —— (1.7)
Nondeductible compensation ............ 1.8 2.5 2.0
Other, net ........................... (0.4) 0.5 0.6
Total ........................... 20.8% 17.1% 17.5%
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