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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2006
Accumulated Other Comprehensive Income
The following table summarizes the components of accumulated other comprehensive income, net of income taxes:
May 31,
(in millions) 2006 2005 2004
Foreign currency translation adjustment $ 308 $ 301 $ 190
Unrealized loss on derivatives (37) (51) (37)
Unrealized gain on investments 6 9 3
Minimum benefit plan liability adjustment (19) (16) —
Accumulated other comprehensive income $ 258 $ 243 $ 156
9. INCOME TAXES
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended May 31,
(in millions) 2006 2005 2004
Domestic $ 2,727 $ 1,956 $ 2,114
Foreign 2,083 2,095 1,831
Total $ 4,810 $ 4,051 $ 3,945
The provision for income taxes consists of the following:
Year Ended May 31,
(Dollars in millions) 2006 2005 2004
Current provision:
Federal $ 938 $ 624 $ 701
State 97 135 77
Foreign 434 472 428
Total current provision 1,469 1,231 1,206
Deferred provision (benefit):
Federal (35) (11) 9
State 8 (24) 48
Foreign (13) (31) 1
Total deferred provision (benefit) (40) (66) 58
Total provision for income taxes $ 1,429 $ 1,165 $ 1,264
Effective income tax rate 29.7% 28.8% 32.0%
88
Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠