NetFlix 2011 Annual Report Download - page 71
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The following table summarizes stock-based compensation expense, net of tax, related to stock option plans
and employee stock purchases which were allocated as follows:
Year Ended December 31,
2011 2010 2009
(in thousands)
Fulfillment expenses .................................... $ 1,500 $ 1,145 $ 380
Marketing ............................................. 6,107 3,043 1,786
Technology and development ............................. 28,922 10,189 4,453
General and administrative ............................... 25,053 13,619 5,999
Stock-based compensation expense before income taxes ........ 61,582 27,996 12,618
Income tax benefit ...................................... (22,847) (11,161) (5,017)
Total stock-based compensation after income taxes ............ $38,735 $ 16,835 $ 7,601
8. Income Taxes
The components of provision for income taxes for all periods presented were as follows:
Year Ended December 31,
2011 2010 2009
(in thousands)
Current tax provision:
Federal .......................................... $123,406 $ 86,002 $55,104
State ............................................ 28,657 21,803 14,900
Foreign .......................................... (70) — —
Total current .................................. 151,993 107,805 70,004
Deferred tax provision:
Federal .......................................... (14,008) (1,615) 6,568
State ............................................ (4,589) 653 (240)
Total deferred ................................. (18,597) (962) 6,328
Provision for income taxes ............................... $133,396 $106,843 $76,332
Income tax benefits attributable to the exercise of employee stock options at $45.5 million, $62.2 million
and $12.4 million in 2011, 2010 and 2009, respectively, are recorded directly to additional paid-in-capital.
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory
federal income tax rate to income before income taxes is as follows:
Year Ended December 31,
2011 2010 2009
(in thousands)
Expected tax expense at U.S. federal statutory rate of 35% ..... $125,833 $ 93,694 $67,267
State income taxes, net of Federal income tax effect ........... 15,042 15,349 10,350
R&D tax credit ........................................ (8,365) (3,207) (1,616)
Other ................................................ 886 1,007 331
Provision for income taxes ............................... $133,396 $106,843 $76,332
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