Intel 2003 Annual Report Download - page 73

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Table of Contents
Index to Financial Statements
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 11: 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 2003 by $216 million ($270
million for 2002 and $435 million for 2001).
The difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to income before
income taxes was as follows:
The company reduced its tax provision for 2003 by approximately $758 million due to the tax benefits related to the sale of certain
businesses and assets through the sale of stock of acquired companies ($75 million in 2002). See “Note 14: Business Combinations and
Divestitures.”
The company reduced its tax provision for 2001 by $100 million due to an increase in the tax benefit related to export sales for 2000,
including the impact of a revision in the tax law. This change in estimated taxes was reflected in the federal tax return for 2000 filed in 2001.
67
(Dollars in Millions)
2003
2002
2001
Income (loss) before taxes:
U.S.
$
5,705
$
2,165
$
(350
)
Non
-
U.S.
1,737
2,039
2,533
Total income before taxes
$
7,442
$
4,204
$
2,183
Provision for taxes:
Federal:
Current
$
808
$
542
$
903
Deferred
420
91
(417
)
1,228
633
486
State:
Current
223
143
142
Non
-
U.S.:
Current
379
292
366
Deferred
(29
)
19
(102
)
350
311
264
Total provision for taxes
$
1,801
$
1,087
$
892
Effective tax rate
24.2
%
25.9
%
40.9
%
(In Percentages)
2003
2002
2001
Statutory federal income tax rate
35.0
%
35.0
%
35.0
%
Increase (reduction) in rate resulting from:
State taxes, net of federal benefits
1.9
2.2
4.2
Non
-
U.S. income taxed at different rates
(2.8
)
(5.9
)
(15.4
)
Non
-
deductible acquisition
-
related costs and goodwill impairments
3.1
1.3
30.6
Tax benefit related to divestitures
(10.2
)
(1.8
)
—
Export sales benefit
(2.5
)
(3.0
)
(11.2
)
Other
(0.3
)
(1.9
)
(2.3
)
Income tax rate
24.2
%
25.9
%
40.9
%