Intel 1999 Annual Report Download - page 43

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Interest income and other
Comprehensive income
The components of other comprehensive income and related tax effects were as follows:
Accumulated other comprehensive income presented in the accompanying consolidated balance sheets consists of the accumulated net
unrealized gain on available-for-sale investments.
Provision for taxes
Income before taxes and the provision for taxes consisted of the following:
The tax benefit associated with dispositions from employee stock plans reduced taxes currently payable for 1999 by $506 million ($415 million
and $224 million for 1998 and 1997, respectively).
The provision for taxes reconciles to the amount computed by applying the statutory federal rate of 35% to income before taxes as follows:
(In millions) 1999 1998 1997
------------------------------------------------------------------------------------------------------------------------
Interest income $ 618 $593 $562
Gains on sales of marketable strategic equity
securities 883 185 106
Foreign currency gains (losses), net (1) 11 63
Other income (expense), net (3) 3 68
------ ----- -----
Total $1,497 $792 $799
====== ===== =====
(In millions) 1999 1998 1997
-------------------------------------------------------------------------------------------------------------------------
Gains on investments during the year, net of tax of $(2,026), $(357)
and $(4) in 1999, 1998 and 1997, respectively $3,762 $ 665 $ 5
Less: adjustment for gains realized and included in net income, net of tax
of $309, $65 and $37 in 1999, 1998 and 1997, respectively (574) (120) (69)
----- ----- -----
Other comprehensive income $3,188 $ 545 $ (64)
====== ===== =====
(In millions) 1999 1998 1997
-----------------------------------------------------------------------------------------------------------------------
Income before taxes:
U.S. $ 7,239 $6,677 $ 8,033
Foreign 3,989 2,460 2,626
------- ------ -------
Total income before taxes $11,228 $9,137 $10,659
======= ====== =======
Provision for taxes:
Federal:
Current $ 3,356 $2,321 $ 2,930
Deferred (162) 145 30
------- ------ -------
3,194 2,466 2,960
------- ------ -------
State:
Current 393 320 384
Foreign:
Current 384 351 394
Deferred (57) (68) (24)
-------- ------- --------
327 283 370
-------- ------- --------
Total provision for taxes $ 3,914 $3,069 $ 3,714
======= ====== =======
Effective tax rate 34.9% 33.6% 34.8%
======= ====== =======
(In millions) 1999 1998 1997
----------------------------------------------------------------------------------------------------------------------
Computed expected tax $3,930 $3,198 $3,731
State taxes, net of federal benefits 255 208 249
Foreign income taxed at different rates (239) (339) (111)
Non-deductible acquisition-related costs 274 74 -
Other (306) (72) (155)
------ ------ ------