CISCO SYSTEMS, INC. | 2013 | FY | 3

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following:
Years Ended
July 27, 2013
 
July 28, 2012
 
July 30, 2011
Federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
Effect of:
 
 
 
 
 
State taxes, net of federal tax benefit
0.8

 
0.4

 
1.5

Foreign income at other than U.S. rates
(16.4
)
 
(15.6
)
 
(19.4
)
Tax credits
(1.6
)
 
(0.4
)
 
(3.0
)
Domestic manufacturing deduction
(1.0
)
 
(1.1
)
 
(0.3
)
Nondeductible compensation
1.3

 
1.8

 
2.5

Tax audit settlement
(7.1
)
 
—

 
—

Other, net
0.1

 
0.7

 
0.8

Total
11.1
 %

20.8
 %
 
17.1
 %

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