LinkedIn 2012 Annual Report Download - page 98
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The following table presents the components of the provision for income taxes for the periods
presented (in thousands):
Year Ended December 31,
2012 2011 2010
Current:
Federal .................................... $30,919 $ 11 $ 107
State ...................................... 3,452 204 541
Foreign .................................... 4,390 1,307 224
Total current .................................. 38,761 1,522 872
Deferred:
Federal .................................... (395) 8,258 2,847
State ...................................... (2,629) 726 (247)
Foreign .................................... (233) 524 109
Total deferred ................................. (3,257) 9,508 2,709
Total provision ................................ $35,504 $11,030 $3,581
The following table presents a reconciliation of the statutory federal rate and the Company’s effective
tax rate for the periods presented:
Year Ended
December 31,
2012 2011 2010
U.S. federal taxes at statutory rate ........................ 35% 35% 35%
State income taxes, net of federal benefit ................... 2 (12) 1
Foreign rate differential ................................ 12 11 (1)
Permanent differences ................................. 1 4 1
Stock-based compensation .............................. 3 11 10
Change in valuation allowance ........................... (2) 17 (20)
Research and development credits ........................ — (21) (8)
Transaction-related expenses ............................ 11 1 —
Other ............................................. — 2 1
Total .............................................. 62% 48% 19%
On January 2, 2013, the President signed into law The American Taxpayer Relief Act of 2012 (the
‘‘2012 Act’’). Under prior law, a taxpayer was entitled to a research tax credit for qualifying amounts paid
or incurred on or before December 31, 2011. The 2012 Act extends the research credit for two years to
December 31, 2013. The extension of the research credit is retroactive and includes amounts paid or
incurred after December 31, 2011. As a result of the retroactive extension, we expect to recognize a tax
benefit of approximately $11.0 million to $12.5 million for qualifying amounts incurred in 2012. The tax
benefit will be recognized in the period of enactment, which is the first quarter of 2013.
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 used for income tax
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