eBay 2011 Annual Report Download - page 131

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
of grant.
Note 18 – Income Taxes
The components of pretax income in consolidated companies for the years ended December 31, 2011 , 2010 and 2009 are as follows (in
thousands):
U.S. pre-tax income for the year ended December 31, 2011 and 2010 includes approximately $448.5 million and $400.0 million ,
respectively, relating to non-U.S. income recharacterized as U.S. income due to the settlement of multiple uncertain tax positions.
The provision for income taxes is comprised of the following (in thousands):
The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the
federal statutory rate of 35% for 2011 , 2010 and 2009 to income before income taxes (in thousands):
Year Ended December 31,
2011
2010
2009
United States
$
1,746,101
$
847,962
$
148,773
International
2,163,945
1,250,485
2,730,378
$
3,910,046
$
2,098,447
$
2,879,151
Year Ended December 31,
2011
2010
2009
Current:
Federal
$
517,877
$
(130,962
)
$
507,411
State and local
24,268
(13,356
)
96,496
Foreign
121,556
92,209
64,960
$
663,701
$
(52,109
)
$
668,867
Deferred:
Federal
$
64,287
$
398,597
$
(160,811
)
State and local
(3,158
)
8,195
(20,179
)
Foreign
(44,171
)
(57,197
)
2,177
16,958
349,595
(178,813
)
$
680,659
$
297,486
$
490,054
Year Ended December 31,
2011
2010
2009
Provision at statutory rate
$
1,368,516
$
734,456
$
1,007,703
Permanent differences:
Foreign income taxed at different rates
(1,093,508
)
(441,044
)
(475,967
)
Gain on sale of Skype
321,484
—
(
498,360
)
Joltid settlement —
—
120,339
Legal entity restructuring —
(
23,649
)
184,410
Change in valuation allowance
(787
)
1,407
58,670
Stock-based compensation
31,705
7,595
41,436
State taxes, net of federal benefit
21,110
31,003
49,606
Tax credits
(8,039
)
(48,745
)
(13,352
)
Divested business
33,743
—
—
Other
6,435
36,463
15,569
$
680,659
$
297,486
$
490,054