(3) INCOME TAXES Earnings before income taxes derived from International and United States operations for the years ended  March 31 are as follows: Income tax expense (benefit) for the years ended March 31 consists of the following: Included in other current liabilities at March 31, 2010 and 2009 are income taxes payable of $2.6 million and  $24.8 million, respectively.  The actual income tax expense for the years ended March 31, 2010, 2009, and 2008 differs from the  amounts computed by applying the U.S. federal statutory tax rate of 35% to pre-tax earnings as a result of  the following:  The company is not liable for U.S. taxes on future undistributed earnings of most of its non-U.S. subsidiaries  and business ventures that it considers indefinitely reinvested abroad because the company adopted the  provisions of the American Jobs Creation Act of 2004 (the Act) effective April 1, 2005. All previously  recorded deferred tax assets and liabilities related to temporary differences, foreign tax credits, or prior  undistributed earnings of these entities whose future and prior earnings were anticipated to be indefinitely  reinvested abroad were reversed in March 2005. The company’s fiscal 2010, 2009 and 2008 effective tax  rate was 3.08%, 17.22% and 18.05%, respectively.  (In thousands)  2010 2009 2008 Computed "expected" tax expense  $  93,707  172,030  148,949  Increase (reduction) resulting from:  Resolution of uncertain tax positions  (38,423)  ---  ---  Foreign income taxed at different rates  (54,352)  (89,803)  (74,641)  Foreign tax credits not previously recognized  (176)  (155)  (725)  Current foreign earnings not subject to taxation  ---  (540)  (197)  Expenses which are not deductible for tax purposes  4,335  421  479  State taxes (46) 83 158 Other, net 3,213 2,581 2,783 $ 8,258 84,617 76,806 U.S. (In thousands)  Federal  State  International  Total  2010  Current $ (38,353) (71) 44,779 6,355 Deferred 2,079 --- (176) 1,903 $ (36,274) (71) 44,603 8,258 2009  Current $ 5,919 127 65,682 71,728 Deferred 13,044 --- (155) 12,889 $ 18,963 127 65,527 84,617 2008  Current $ 7,640 243 62,243 70,126 Deferred 7,405 --- (725) 6,680 $ 15,045 243 61,518 76,806 (In thousands)  2010  2009  2008  International  $ 280,040 461,446 413,420 United States  (12,306) 30,069 12,149  $ 267,734 491,515 425,569  TIDEWATER INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended March 31, 2010, 2009, and 2008  F-16