Intel 2013 Annual Report Download - page 102

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97
Current income taxes receivable of $65 million as of December 28, 2013, ($866 million as of December 29, 2012) is
included in other current assets. Current income taxes payable of $542 million as of December 28, 2013, ($711
million as of December 29, 2012) is included in other accrued liabilities.
Long-term income taxes payable of $188 million as of December 28, 2013, ($177 million as of December 29, 2012)
within other long-term liabilities, includes uncertain tax positions, reduced by the associated federal deduction for
state taxes and non-U.S. tax credits, and may also include other long-term tax liabilities that are not uncertain but
have not yet been paid.
Uncertain Tax Positions
The aggregate changes in the balance of gross unrecognized tax benefits for each period were as follows:
(In Millions) 2013 2012 2011
Beginning gross unrecognized tax benefits $ 189 $ 212 $ 216
Settlements and effective settlements with tax authorities and
related remeasurements (2) (81) (63)
Lapse of statute of limitations —(5) (17)
Increases in balances related to tax positions taken during prior
periods 21 56 91
Decreases in balances related to tax positions taken during prior
periods (9) (6) (21)
Increases in balances related to tax positions taken during current
period 813 6
Ending gross unrecognized tax benefits $ 207 $ 189 $ 212
During 2013, we settled and effectively settled matters with certain state and non-U.S. tax authorities relating to tax
positions taken during prior periods. The result of the settlements, effective settlements, and re-measurements
resulted in an insignificant reduction in the balance of our gross unrecognized tax benefits in 2013 ($81 million in
2012 and $63 million in 2011). The related tax benefit for settlements, effective settlements, and re-measurements
is insignificant for 2013 ($7 million for 2012 and $61 million for 2011).
If the remaining balance of $207 million of unrecognized tax benefits as of December 28, 2013, ($189 million as of
December 29, 2012) were realized in a future period, it would result in a tax benefit of $81 million and a reduction in
the effective tax rate ($66 million as of December 29, 2012).
During all years presented, we recognized interest and penalties related to unrecognized tax benefits within the
provision for taxes on the consolidated statements of income. Interest and penalties related to unrecognized tax
benefits were insignificant in 2013 (insignificant in 2012 and $24 million in 2011). As of December 28, 2013, we had
$73 million of accrued interest and penalties related to unrecognized tax benefits ($66 million as of December 29,
2012).
Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that
certain non-U.S. tax audits may be concluded within the next 12 months which could significantly increase or
decrease the balance of our gross unrecognized tax benefits. However, the estimated impact to income tax
expense and net income is not expected to be significant.
We file federal, state, and non-U.S. tax returns. For state and non-U.S. tax returns, we are generally no longer
subject to tax examinations for years prior to 2001. For federal tax returns, we are no longer subject to tax
examination for years prior to 2009.
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)