Salesforce.com 2013 Annual Report Download - page 99

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The provision for (benefit from) income taxes consisted of the following (in thousands):
Fiscal Year Ended January 31,
2013 2012 2011
Current:
Federal .................................. $ 12,896 $ 9,344 $ 29,992
State .................................... 3,021 4,346 6,276
Foreign .................................. 30,261 15,709 13,239
Total .................................... 46,178 29,399 49,507
Deferred:
Federal .................................. 72,656 (36,601) (8,687)
State .................................... 28,538 (10,603) (4,745)
Foreign .................................. (4,721) (3,940) (1,474)
Total .................................... 96,473 (51,144) (14,906)
Provision for (benefit from) income taxes ....... $142,651 $(21,745) $ 34,601
During fiscal 2013, 2012 and 2011, the Company recorded net tax benefits that resulted from allocating
certain tax effects related to exercises of stock options and vesting of restricted stocks directly to stockholders’
equity in the amount of $7.2 million, $1.6 million, and $36.1 million, respectively.
A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from)
income taxes included in the accompanying consolidated statements of operations is as follows (in thousands):
Fiscal Year Ended January 31,
2013 2012 2011
U.S. federal taxes at statutory rate ................. $(44,729) $(11,661) $ 36,504
State, net of the federal benefit ................... (969) (6) 6,069
Foreign taxes in excess of the U.S. statutory rate ..... 16,931 10,555 3,412
Change in valuation allowance ................... 186,806 0 0
Tax credits ................................... (17,670) (15,049) (13,625)
Non-deductible expenses ........................ 4,807 5,345 2,621
Tax benefit from acquisitions .................... (3,568) (12,575) 0
Other, net .................................... 1,043 1,646 (380)
$142,651 $(21,745) $ 34,601
The Company receives certain tax incentives in Switzerland and Singapore in the form of reduced tax rates.
These temporary tax reduction programs will expire in 2016 and 2014, respectively. The Singapore program,
however, is eligible for renewal.
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