UNITEDHEALTH GROUP INC | 2013 | FY | 3

The reconciliation of the tax provision at the U.S. federal statutory rate to the provision for income taxes and the effective tax rate for the years ended December 31 is as follows:
(in millions, except percentages)
 
2013
 
2012
 
2011
Tax provision at the U.S. federal statutory rate
 
$
3,120

 
35.0
 %
 
$
3,018

 
35.0
 %
 
$
2,785

 
35.0
 %
State income taxes, net of federal benefit
 
126

 
1.4

 
143

 
1.7

 
136

 
1.7

Settlement of state exams, net of federal benefit
 
1

 
—

 
2

 
—

 
(29
)
 
(0.4
)
Tax-exempt investment income
 
(53
)
 
(0.6
)
 
(59
)
 
(0.7
)
 
(63
)
 
(0.8
)
Non-deductible compensation
 
39

 
0.5

 
22

 
0.2

 
10

 
0.1

Other, net
 
9

 
0.1

 
(30
)
 
(0.3
)
 
(22
)
 
(0.2
)
Provision for income taxes
 
$
3,242

 
36.4
 %
 
$
3,096

 
35.9
 %
 
$
2,817

 
35.4
 %

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