Note 18 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Schedule of income before income tax

The components of pretax income in consolidated companies for the years ended December 31, 2011, 2010 and 2009 are as follows (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

Schedule of components of income tax expense (benefit)

The provision for income taxes is comprised of the following (in thousands):

	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

Schedule of effective income tax rate reconciliation

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
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

Schedule of deferred tax assets and liabilities

Significant deferred tax assets and liabilities consist of the following (in thousands):

	December 31,
	2011			2010
Deferred tax assets:
Net operating loss and credits	$	186,759		$	90,390
Accruals and allowances	340,074			310,075
Stock-based compensation	114,283			117,021
Discount on note receivable	67,715			—
Net unrealized losses	1,621			1,882
Net deferred tax assets	710,452			519,368
Valuation allowance	(83,059		)	(42,740		)
	627,393			476,628
Deferred tax liabilities:
Unremitted foreign earnings	(198,363		)	(230,646		)
Acquisition-related intangibles	(461,482		)	(102,894		)
Depreciation and amortization	(264,319		)	(165,563		)
Available-for-sale securities	(234,156		)	(199,421		)
Other	(21,320		)	—
	(1,179,640		)	(698,524		)
	$	(552,247	)	$	(221,896	)

Changes in unrecognized tax benefits

	2011			2010
	(In thousands)
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	428,344		$	838,616
Increases related to prior period tax positions	32,582			33,904
Decreases related to prior period tax positions	(138,746		)	(305,874		)
Increases related to current period tax positions	40,926			22,229
Settlements	(77,386		)	(160,531		)
Gross amounts of unrecognized tax benefits as of the end of the period	$	285,720		$	428,344