Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Wednesday, February 01, 2006
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.