LinkedIn 2013 Annual Report Download - page 103

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The following table presents domestic and foreign components of income before income taxes for the
periods presented (in thousands):
Year Ended December 31,
2013 2012 2011
Domestic .................................. $145,421 $110,535 $28,945
Foreign ................................... (96,193) (53,421) (6,003)
Total ..................................... $ 49,228 $ 57,114 $22,942
The following table presents the components of the provision for income taxes for the periods
presented (in thousands):
Year Ended December 31,
2013 2012 2011
Current:
Federal .................................. $35,754 $30,919 $ 11
State .................................... 5,513 3,452 204
Foreign .................................. 10,358 4,390 1,307
Total current ................................ 51,625 38,761 1,522
Deferred:
Federal .................................. (25,469) (395) 8,258
State .................................... (2,579) (2,629) 726
Foreign .................................. (1,118) (233) 524
Total deferred ............................... (29,166) (3,257) 9,508
Total provision ............................... $22,459 $35,504 $11,030
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,
2013 2012 2011
U.S. federal taxes at statutory rate ......................... 35% 35% 35%
State income taxes, net of federal benefit .................... 4 2 (12)
Foreign rate differential ................................. 36 12 11
Permanent differences .................................. 1 1 4
Stock-based compensation ............................... 5 3 11
Change in valuation allowance ............................ — (2) 17
Research and development credits ......................... (56) — (21)
Transaction-related expenses .............................. 23 11 1
Other .............................................. (2) — 2
Total ............................................... 46% 62% 48%
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, the Company recognized a tax
101