Oracle 2007 Annual Report Download - page 107

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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2008
The provision for income taxes consisted of the following:
Year Ended May 31,
(Dollars in millions) 2008 2007 2006
Current provision:
Federal $ 1,325 $ 864 $ 938
State 231 147 97
Foreign 892 757 434
Total current provision 2,448 1,768 1,469
Deferred provision (benefit):
Federal (96) 45 (35)
State (24) 4 8
Foreign (15) (105) (13)
Total deferred benefit (135) (56) (40)
Total provision for income taxes $ 2,313 $ 1,712 $ 1,429
Effective income tax rate 29.5% 28.6% 29.7%
The provision for income taxes differed from the amount computed by applying the federal statutory rate to
our income before provision for income taxes as follows:
Year Ended May 31,
(in millions) 2008 2007 2006
Tax provision at statutory rate $ 2,742 $ 2,095 $ 1,684
Foreign earnings at other than United States rates (569) (580) (426)
State tax expense, net of federal benefit 135 98 68
Settlement of audits and expiration of statutes, net (20) (29) —
Other 25 128 103
Total provision for income taxes $ 2,313 $ 1,712 $ 1,429
102
Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠