Crucial 2012 Annual Report Download - page 81

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Other Non-Operating Income (Expense), Net
Other non-operating income for 2012 included $35 million in net gains from equity investments. Other non-operating
income for 2011 included $15 million for the termination of our debt guarantee obligation that we recorded in connection with
our acquisition of Numonyx and a $111 million loss recognized in connection with a series of debt restructure transactions with
certain holders of our convertible notes. (See "Debt" note.) Other non-operating income for 2010 included $56 million of gain
recognized in connection with Inotera's sale of common shares in a public offering. (See "Equity Method Investments –
Inotera" note.)
Income Taxes
For the year ended 2012 2011 2010
Income (loss) before taxes, net income attributable to noncontrolling interests
and equity in net loss of equity method investees:
U.S. $ (1,028) $ 257 $ 1,383
Foreign 274 294 537
$ (754) $ 551 $ 1,920
Income tax (provision) benefit:
Current:
U.S. federal $ 14 $ — $ 66
Foreign (22)(89)(24)
State — (1)(4)
(8)(90) 38
Deferred:
U.S. federal — — (5)
Foreign 25 (113)(14)
25 (113)(19)
Income tax (provision) benefit $ 17 $ (203) $ 19
Income tax (provision) benefit computed using the U.S. federal statutory rate reconciled to income tax (provision) benefit
was as follows:
For the year ended 2012 2011 2010
U.S. federal income tax (provision) benefit at statutory rate $ 264 $ (193) $ (672)
Foreign operations 104 (119) 135
State taxes, net of federal benefit 9 (5)(22)
Tax credits 2 17 3
Change in valuation allowance (373) 103 424
Debt repurchase premium — (20) —
Gain on acquisition of Numonyx — — 153
Other 11 14 (2)
Income tax (provision) benefit $ 17 $ (203) $ 19