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U.S. and international components of income before income taxes were as follows:

 









































(In millions)

 

 

 













Year Ended June 30,

  

2012

 

 

2011

 

 

2010

 













U.S.

  

$

1,600

  

 

$

8,862

  

 

$

9,575

  

International

  

 

20,667

  

 

 

19,209

  

 

 

15,438

  

 

 

 

 

 

 

 

 

 

 

Income before income taxes

  

$

  22,267

  

 

$

  28,071

  

 

$

  25,013

  

 

  

 

 

 

 

 

 

 

 

 

 

 

The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows:

 









































 

 













Year Ended June 30,

  

2012

 

 

2011

 

 

2010

 













Federal statutory rate

  

 

35.0%

  

 

 

35.0%

  

 

 

35.0%

  

Effect of:

  

 

 

 

 

 

 

 

 

 

 

 

Foreign earnings taxed at lower rates

  

 

(21.1)%

  

 

 

(15.6)%

  

 

 

(12.1)%

  

Goodwill impairment

  

 

9.7%

  

 

 

0%

  

 

 

0%

  

I.R.S. settlement

  

 

0%

  

 

 

(1.7)%

  

 

 

0%

  

Other reconciling items, net

  

 

0.2%

  

 

 

(0.2)%

  

 

 

2.1%

  

 

 

 

 

 

 

 

 

 

 

Effective rate

  

 

23.8%

  

 

 

17.5%

  

 

 

25.0%

  

 

  

 

 

 

 

 

 

 

 

 

 

 


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