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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2016
We also offer non-qualified deferred compensation plans to certain employees whereby they may defer a portion of their annual base and/or variable compensation
until retirement or a date specified by the employee in accordance with the plans. Deferred compensation plan assets and liabilities were each approximately $419
million as of May 31, 2016 and were each approximately $408 million as of May 31, 2015 and were presented in other assets and other non-current liabilities in the
accompanying consolidated balance sheets.
We sponsor certain defined benefit pension plans that are offered primarily by certain of our foreign subsidiaries. Many of these plans were assumed through our
acquisitions or are required by local regulatory requirements. We may deposit funds for these plans with insurance companies, third-party trustees, or into
government-managed accounts consistent with local regulatory requirements, as applicable. Our total defined benefit plan pension expenses were $95 million, $69
million and $64 million for fiscal 2016, 2015 and 2014, respectively. The aggregate projected benefit obligation and aggregate net liability (funded status) of our
defined benefit plans as of May 31, 2016 was $949 million and $587 million, respectively, and as of May 31, 2015 was $1.0 billion and $599 million, respectively.
15. INCOME TAXES
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended May 31,
(in millions) 2016 2015 2014
Domestic $ 4,033 $ 5,136 $ 5,397
Foreign 7,409 7,698 8,307
Income before provision for income taxes $ 11,442 $ 12,834 $ 13,704
The provision for income taxes consisted of the following:
Year Ended May 31,
(Dollars in millions) 2016 2015 2014
Current provision:
Federal $ 1,301 $ 2,153 $ 1,613
State 271 310 337
Foreign 1,074 981 1,047
Total current provision $ 2,646 $ 3,444 $ 2,997
Deferred benefit:
Federal $ (123) $ (408) $ (68)
State (21) (46) (100)
Foreign 39 (94) (80)
Total deferred benefit $ (105) $ (548) $ (248)
Total provision for income taxes $ 2,541 $ 2,896 $ 2,749
Effective income tax rate 22.2% 22.6% 20.1%
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