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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
VMware’s provision for income taxes consisted of the following (table in thousands):
A reconciliation of VMware’s income tax rate to the statutory federal tax rate is as follows:
The increase in the impact of the tax rate differential for international jurisdictions from 2010 to 2011 is primarily attributable to a shift in
the mix of income before tax from the U.S. to international jurisdictions, which largely resulted from how certain expenses were allocated to
VMware's world-wide subsidiaries.
80
For the Year Ended December 31,
2011
2010
2009
Federal:
Current
$
42,772
$
65,796
$
41,114
Deferred
(23,566
)
(42,158
)
(35,908
)
19,206
23,638
5,206
State:
Current
721
15,496
6,070
Deferred
11,353
(9,055
)
(3,630
)
12,074
6,441
2,440
Foreign:
Current
41,351
34,592
19,643
Deferred
(2,154
)
(5,735
)
(938
)
39,197
28,857
18,705
Total provision for income taxes
$
70,477
$
58,936
$
26,351
For the Year Ended December 31,
2011
2010
2009
Statutory federal tax rate
35.0
%
35.0
%
35.0
%
State taxes, net of federal benefit
1.5
1.5
1.1
Tax rate differential for international jurisdictions
(25.1
)
(17.3
)
(21.5
)
U.S. tax credits
(6.2
)
(8.6
)
(8.5
)
Permanent items and other
3.7
3.6
5.7
Effective tax rate
8.9
%
14.2
%
11.8
%