Oracle 2010 Annual Report Download - page 198

INCOME TAXES
INCOME TAXES
(USD $)
12 Months Ended
05/31/2011
INCOME TAXES 15. INCOME TAXES
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended May 31,
(in millions) 2011 2010 2009
Domestic $ 6,378 $ 4,282 $ 3,745
Foreign 5,033 3,961 4,089
Total income before provision for income taxes $ 11,411 $ 8,243 $ 7,834
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
Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠