United Healthcare 2012 Annual Report Download - page 96
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notional amount of $256 million and mature on December 31, 2013. As of December 31, 2012, the fair value of
the currency swap liability was $3 million, which was recorded in Other Current Liabilities in the Company’s
Consolidated Balance Sheets.
9. Income Taxes
The components of the provision for income taxes for the years ended December 31 are as follows:
(in millions) 2012 2011 2010
Current Provision:
Federal .......................................................... $2,638 $2,608 $2,524
State and local .................................................... 150 150 180
Total current provision .................................................. 2,788 2,758 2,704
Deferred provision ..................................................... 308 59 45
Total provision for income taxes .......................................... $3,096 $2,817 $2,749
The reconciliation of the tax provision at the U.S. Federal Statutory Rate to the provision for income taxes for the
years ended December 31 is as follows:
(in millions, except percentages) 2012 2011 2010
Tax provision at the U.S. federal statutory rate ............ $3,018 35.0% $2,785 35.0% $2,584 35.0%
State income taxes, net of federal benefit ................. 143 1.7 136 1.7 129 1.7
Settlement of state exams, net of federal benefit ........... 2 — (29) (0.4) (3) —
Tax-exempt investment income ........................ (59) (0.7) (63) (0.8) (65) (0.9)
Non-deductible compensation .......................... 22 0.2 10 0.1 64 0.9
Other, net .......................................... (30) (0.3) (22) (0.2) 40 0.5
Provision for income taxes ............................ $3,096 35.9% $2,817 35.4% $2,749 37.2%
The higher effective income tax rate for 2012 as compared to 2011 resulted from the favorable resolution of
various tax matters in 2011. The 2010 effective income tax rates were at higher levels due to the cumulative
implementation of changes under the Health Reform Legislation.
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