Note 17 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of income before income tax

The components of pretax income for the years ended December 31, 2012, 2011 and 2010 are as follows:

	Year Ended December 31,
	2012		2011		2010
	(In millions)
United States	$	605	$	1,746	$	848
International	2,479		2,164		1,250
	$	3,084	$	3,910	$	2,098

Schedule of components of income tax expense (benefit)

The provision for income taxes is comprised of the following:

	Year Ended December 31,
	2012			2011			2010
	(In millions)
Current:
Federal	$	327		$	518		$	(131	)
State and local	63			24			(13		)
Foreign	120			122			92
	$	510		$	664		$	(52	)
Deferred:
Federal	$	34		$	64		$	398
State and local	(24		)	(3		)	8
Foreign	(45		)	(44		)	(57		)
	(35		)	17			349
	$	475		$	681		$	297

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 2012, 2011 and 2010 to income before income taxes:

	Year Ended December 31,
	2012			2011			2010
	(In millions)
Provision at statutory rate	$	1,080		$	1,369		$	734
Permanent differences:
Foreign income taxed at different rates	(617		)	(1,093		)	(441		)
Gain on sale of Skype	—			321			—
Legal entity restructuring	—			—			(24		)
Change in valuation allowance	3			(1		)	1
Stock-based compensation	(14		)	32			8
State taxes, net of federal benefit	39			21			31
Tax credits	1			(8		)	(49		)
Divested business	(41		)	34			—
Other	24			6			37
	$	475		$	681		$	297

Schedule of deferred tax assets and liabilities

Significant deferred tax assets and liabilities consist of the following:

	December 31,
	2012			2011
	(In millions)
Deferred tax assets:
Net operating loss, capital loss and credits	$	235		$	187
Accruals and allowances	355			340
Stock-based compensation	133			114
Discount on note receivable	55			68
Net unrealized losses	5			1
Net deferred tax assets	783			710
Valuation allowance	(169		)	(83		)
	$	614		$	627
Deferred tax liabilities:
Unremitted foreign earnings	$	(220	)	$	(198	)
Acquisition-related intangibles	(357		)	(462		)
Depreciation and amortization	(302		)	(264		)
Available-for-sale securities	(237		)	(234		)
Other	(21		)	(21		)
	(1,137		)	(1,179		)
	$	(523	)	$	(552	)

Changes in unrecognized tax benefits

	2012			2011
	(In millions)
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	286		$	428
Increases related to prior period tax positions	60			33
Decreases related to prior period tax positions	(24		)	(139		)
Increases related to current period tax positions	19			41
Settlements	(1		)	(77		)
Gross amounts of unrecognized tax benefits as of the end of the period	$	340		$	286