Oracle 2010 Annual Report Download - page 127

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
The provision for income taxes consisted of the following:
Year Ended May 31,
(Dollars in millions) 2011 2010 2009
Current provision:
Federal $ 1,817 $ 1,307 $ 1,341
State 263 299 361
Foreign 1,037 1,013 934
Total current provision 3,117 2,619 2,636
Deferred provision (benefit):
Federal (179) (380) (177)
State 14 (76) (52)
Foreign (88) (55) (166)
Total deferred benefit (253) (511) (395)
Total provision for income taxes $ 2,864 $ 2,108 $ 2,241
Effective income tax rate 25.1% 25.6% 28.6%
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) 2011 2010 2009
Tax provision at statutory rate $ 3,994 $ 2,885 $ 2,742
Foreign earnings at other than United States rates (1,125) (672) (673)
State tax expense, net of federal benefit 188 161 201
Settlements and releases from judicial decisions and statute expirations, net (53) (315) 25
Domestic production activity deduction (206) (95) (82)
Other, net 66 144 28
Total provision for income taxes $ 2,864 $ 2,108 $ 2,241
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠