Intel 2008 Annual Report Download - page 111

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 23: Taxes
Income before taxes and the provision for taxes consisted of the following:
The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of
income before income taxes was as follows:
During 2008, income tax benefits attributable to equity-based compensation transactions that were allocated to stockholders’
equity totaled $8 million ($123 million in 2007 and $126 million in 2006).
102
(Dollars in Millions)
2008
2007
2006
Income before taxes:
U.S.
$
6,117
$
6,520
$
4,532
Non
-
U.S.
1,569
2,646
2,536
Total income before taxes
$
7,686
$
9,166
$
7,068
Provision for taxes:
Current:
Federal
$
2,781
$
1,865
$
1,997
State
(38
)
111
15
Non
-
U.S.
345
445
337
3,088
2,421
2,349
Deferred:
Federal
(668
)
(140
)
(305
)
Other
(26
)
(91
)
(20
)
(694
)
(231
)
(325
)
Total provision for taxes
$
2,394
$
2,190
$
2,024
Effective tax rate
31.1
23.9
%
28.6
(In Percentages)
2008
2007
2006
Statutory federal income tax rate
35.0
35.0
%
35.0
Increase (reduction) in rate resulting from:
Non
-
U.S.
income taxed at different rates
(4.2
)
(4.7
)
(4.3
)
Settlements
(0.5
)
(5.3
)
—
Research and development tax credits
(1.4
)
(1.3
)
(0.8
)
Domestic manufacturing deduction benefit
(1.7
)
(1.1
)
(0.9
)
Deferred tax asset valuation allowance
—
unrealized losses
3.4
—
—
Export sales benefit
—
—
(
2.1
)
Other
0.5
1.3
1.7
Income tax rate
31.1
23.9
%
28.6