Intel 1997 Annual Report Download - page 54

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Notes to consolidated
financial statements
Interest income and other
Other income for 1997 includes approximately $106 million from sales of a portion of the Company's investments in marketable equity
securities. Other income for 1995 included approximately $58 million from the settlement of ongoing litigation and $60 million from sales of a
portion of the Company's investments in marketable equity securities.
Provision for taxes
The provision for taxes consisted of the following:
The tax benefit associated with dispositions from employee stock plans reduced taxes currently payable for 1997 by $224 million ($196 million
and $116 million for 1996 and 1995, respectively).
The provision for taxes reconciles to the amount computed by applying the statutory federal rate of 35% to income before taxes as follows:
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.
Significant components of the Company's deferred tax assets and liabilities at fiscal year-ends were as follows:
(In millions) 1997 1996 1995
--------------------------------------------------------------------------------
Interest income $ 562 $ 364 $ 272
Foreign currency gains 63 26 29
Other income 174 16 114
-------- -------- --------
Total $ 799 $ 406 $ 415
======== ======== ========
(In millions) 1997 1996 1995
--------------------------------------------------------------------------------
Income before taxes:
U.S. $ 8,033 $ 5,515 $ 3,427
Foreign 2,626 2,419 2,211
-------- -------- --------
Total income before taxes $ 10,659 $ 7,934 $ 5,638
======== ======== ========
Provision for taxes:
Federal:
Current $ 2,930 $ 2,046 $ 1,169
Deferred 30 8 307
-------- -------- --------
2,960 2,054 1,476
-------- -------- --------
State:
Current 384 286 203
Foreign:
Current 394 266 354
Deferred (24) 171 39
-------- -------- --------
370 437 393
-------- -------- --------
Total provision for taxes $ 3,714 $ 2,777 $ 2,072
======== ======== ========
Effective tax rate 34.8% 35.0% 36.8%
======== ======== ========
(In millions) 1997 1996 1995
------------------------------------------------------------------------------
Computed expected tax $ 3,731 $ 2,777 $ 1,973
State taxes, net of federal
benefits 249 186 132
Other (266) (186) (33)
-------- -------- --------
Provision for taxes $ 3,714 $ 2,777 $ 2,072
======== ======== ========
(In millions) 1997 1996