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

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

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)		2012			2011			2010
Income before taxes:
	U.S.	$	10,042		$	14,659		$	13,926
	Non-U.S.		4,831			3,122			2,119
Total income before taxes		$	14,873		$	17,781		$	16,045

Provision for taxes:
Current:
	Federal	$	2,539		$	3,212		$	4,049
	State		52			104			51
	Non-U.S.		1,135			374			359
Total current provision for taxes		$	3,726		$	3,690		$	4,459

Deferred:
	Federal	$	129		$	1,175		$	187
	Other		13			(26)			(65)
Total deferred provision for taxes		$	142		$	1,149		$	122

Total provision for taxes		$	3,868		$	4,839		$	4,581

Effective tax rate			26.0	%		27.2	%		28.6	%

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:

		2012		2011		2010
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	(7.3)		(4.4)		(3.4)
	Domestic manufacturing deduction benefit	(2.1)		(1.9)		(2.1)
	Research and development tax credits	—		(1.0)		(0.9)
	Other	0.4		(0.5)		—
Effective tax rate		26.0	%	27.2	%	28.6	%

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)		2012		2011
Deferred tax assets
Accrued compensation and other benefits		$	1,125	$	1,016
Share-based compensation			638		732
Deferred income			637		616
Inventory			506		613
Unrealized losses on investments and derivatives			36		293
State credits and net operating losses			297		230
Other, net			654		756
Gross deferred tax assets			3,893		4,256
Valuation allowance			(389)		(373)
Total deferred tax assets		$	3,504	$	3,883

Deferred tax liabilities
Property, plant and equipment		$	(2,325)	$	(2,329)
Licenses and intangibles			(778)		(915)
Convertible debt			(856)		(799)
Investment in foreign subsidiaries			(213)		(214)
Other, net			(269)		(208)
Total deferred tax liabilities		$	(4,441)	$	(4,465)
Net deferred tax assets (liabilities)		$	(937)	$	(582)

Reported as:
	Current deferred tax assets	$	2,117	$	1,700
	Non-current deferred tax assets		358		335
	Non-current deferred tax liabilities		(3,412)		(2,617)
Net deferred tax assets (liabilities)		$	(937)	$	(582)

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)	2012		2011		2010
Beginning gross unrecognized tax benefits	$	212	$	216	$	220
Settlements and effective settlements with tax authorities and related remeasurements		(81)		(63)		(73)
Lapse of statute of limitations		(5)		(17)		—
Increases in balances related to tax positions taken during prior periods		56		91		28
Decreases in balances related to tax positions taken during prior periods		(6)		(21)		(30)
Increases in balances related to tax positions taken during current period		13		6		71
Ending gross unrecognized tax benefits	$	189	$	212	$	216