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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
L. Income Taxes
The domestic and foreign components of income before provisions for income taxes were as follows (table in millions):
VMware’s provision for income taxes consisted of the following (table in millions):
A reconciliation of VMware’s income tax rate to the statutory federal tax rate is as follows:
79
For the Year Ended December 31,
2013
2012
2011
Domestic
$
160
$
177
$
112
International
987
716
682
Total
$
1,147
$
893
$
794
For the Year Ended December 31,
2013
2012
2011
Federal:
Current
$
1
$
161
$
43
Deferred
57
(71
)
(24
)
58
90
19
State:
Current
2
13
1
Deferred
6
(7
)
11
8
6
12
Foreign:
Current
72
44
41
Deferred
(5
)
7
(2
)
67
51
39
Total provision for income taxes
$
133
$
147
$
70
For the Year Ended December 31,
2013
2012
2011
Statutory federal tax rate
35
%
35
%
35
%
State taxes, net of federal benefit
1
%
1
%
2
%
Tax rate differential for international jurisdictions
(22
)%
(22
)%
(25
)%
U.S. tax credits
(1)
(7
)%
—
%
(
6
)%
Permanent items and other
5
%
3
%
3
%
Effective tax rate
12
%
17
%
9
%
(1)
The federal research credit was enacted retroactively through December 31, 2013, which was passed by the United States Congress during January 2013.