Intel Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Before Taxes And Provisions For Taxes [Table Text Block]

Income before taxes and the provision for taxes consisted of the following:

(Dollars in Millions)		2011			2010			2009
Income before taxes:
	U.S.	$	14,659		$	13,926		$	3,229
	Non-U.S.		3,122			2,119			2,475
Total income before taxes		$	17,781		$	16,045		$	5,704

Provision for taxes:
Current:
	Federal	$	3,212		$	4,049		$	604
	State		104			51			(2)
	Non-U.S.		374			359			336
Total current provision for taxes		$	3,690		$	4,459		$	938

Deferred:
	Federal	$	1,175		$	187		$	355
	Other		(26)			(65)			42
Total deferred provision for taxes		$	1,149		$	122		$	397

Total provision for taxes		$	4,839		$	4,581		$	1,335

Effective tax rate			27.2	%		28.6	%		23.4	%

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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 (effective tax rate) was as follows:

(In Percentages)		2011		2010		2009
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	(4.4)		(3.4)		(12.4)
	Domestic manufacturing deduction benefit	(1.9)		(2.1)		(1.5)
	Research and development tax credits	(1.0)		(0.9)		(2.0)
	Settlements, effective settlements, and related remeasurements	(0.3)		(0.3)		(6.4)
	European Commission fine	—		—		8.9
	Other	(0.2)		0.3		1.8
Effective tax rate		27.2	%	28.6	%	23.4	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and liabilities at year-ends were as follows:

(In Millions)		2011		2010
Deferred tax assets
Accrued compensation and other benefits		$	1,016	$	675
Share-based compensation			732		782
Deferred income			616		240
Inventory			613		95
Unrealized losses on investments and derivatives			293		375
State credits and net operating losses			230		158
Other, net			756		544
Gross deferred tax assets			4,256		2,869
Valuation allowance			(373)		(252)
Total deferred tax assets		$	3,883	$	2,617

Deferred tax liabilities
Property, plant and equipment		$	(2,329)	$	(564)
Licenses and intangibles			(915)		(135)
Convertible debt			(799)		(740)
Investment in foreign subsidiaries			(214)		(52)
Other, net			(208)		(275)
Total deferred tax liabilities		$	(4,465)	$	(1,766)
Net deferred tax assets (liabilities)		$	(582)	$	851

Reported as:
	Current deferred tax assets	$	1,700	$	1,488
	Non-current deferred tax assets		335		289
	Non-current deferred tax liabilities		(2,617)		(926)
Net deferred tax assets (liabilities)		$	(582)	$	851

Changes In Gross Unrecognized Tax Benefits [Table Text Block]

The aggregate changes in the balance of gross unrecognized tax benefits were as follows:

(In Millions)	2011		2010		2009
Beginning gross unrecognized tax benefits	$	216	$	220	$	744
Settlements and effective settlements with tax authorities and related remeasurements		(63)		(73)		(526)
Lapse of statute of limitations		(17)		—		—
Increases in balances related to tax positions taken during prior periods		91		28		28
Decreases in balances related to tax positions taken during prior periods		(21)		(30)		(58)
Increases in balances related to tax positions taken during current period		6		71		32
Ending gross unrecognized tax benefits	$	212	$	216	$	220