Google Tax Rate reflects International Growth

Google (Nasdaq:GOOG) reports their tax rate was higher than expected as more costs were allocated to international activities. The press release distributed by googlepress@googlegroups.com left out any financial statements. The company’s own web site included the same press release with financial statements, but did not provide international segmentation. International revenues now account for approximately 38% and new cost allocation impacts drive tax rates. Its time management breaks this out for all to see. The company laments that the actual Q4 taxes are over 40% but give guidance for 2006 at 30%. Given the importance of international growth to keep this company going I am skeptical. I should not have to be an international tax expert to understand where this company is going.