Pepsi 2015 Annual Report Download - page 111

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Table of Contents
94
Note 5 — Income Taxes
The components of income before income taxes are as follows:
2015 2014 2013
U.S. $ 2,879 $ 2,557 $ 3,078
Foreign 4,563 6,200 5,813
$ 7,442 $ 8,757 $ 8,891
The provision for income taxes consisted of the following:
2015 2014 2013
Current: U.S. Federal $ 1,143 $ 1,364 $ 1,092
Foreign 773 851 807
State 65 210 124
1,981 2,425 2,023
Deferred: U.S. Federal (14) (33) 87
Foreign (32) (60) 11
State 6(133) (17)
(40) (226) 81
$ 1,941 $ 2,199 $ 2,104
A reconciliation of the U.S. Federal statutory tax rate to our annual tax rate is as follows:
2015 2014 2013
U.S. Federal statutory tax rate 35.0% 35.0% 35.0%
State income tax, net of U.S. Federal tax benefit 0.6 0.6 1.2
Lower taxes on foreign results (10.5) (8.6) (8.8)
Impact of Venezuela impairment charges 6.4 ——
Tax settlements (3.1) — (2.4)
Other, net (2.3) (1.9) (1.3)
Annual tax rate 26.1% 25.1% 23.7%