Intel 2010 Annual Report Download - page 128

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred
tax assets and liabilities at year-ends were as follows:
Non
-current deferred tax assets are included within other long-term assets on the consolidated balance sheets.
The valuation allowance is based on our assessment that it is more likely than not that certain deferred tax assets will not be
realized in the foreseeable future. The valuation allowance as of December 25, 2010 included allowances related to unrealized
state credit carry forwards of $156 million and depreciation expense and other matters related to our non-U.S. subsidiaries of
$96 million.
As of December 25, 2010, we had not recognized U.S. deferred income taxes on a cumulative total of $11.8 billion of
undistributed earnings for certain non-U.S. subsidiaries. Determining the unrecognized deferred tax liability related to
investments in these non-U.S.
subsidiaries that are indefinitely reinvested is not practicable. We currently intend to indefinitely
reinvest those earnings in operations outside the U.S.
Long-term income taxes payable include uncertain tax positions, reduced by the associated federal deduction for state taxes
and non-U.S. tax credits, and may also include other long-term tax liabilities that are not uncertain but have not yet been paid.
96
(In Millions)
2010
2009
Deferred tax assets
Accrued compensation and other benefits
$
675
$
568
Deferred income
240
228
Share
-
based compensation
782
774
Inventory
340
Unrealized losses on investments and derivatives
375
407
State credits and net operating losses
158
187
Investment in foreign subsidiaries
—
129
Capital losses
—
150
Other, net
544
386
Gross deferred tax assets
2,869
3,169
Valuation allowance
(252
)
(329
)
Total deferred tax assets
$
2,617
$
2,840
Deferred tax liabilities
Property, plant and equipment
$
(564
)
$
(817
)
Convertible debt
(740
)
(708
)
Licenses and intangibles
(135
)
(129
)
Investment in foreign subsidiaries
(52
)
—
Other, net
(275
)
(247
)
Total deferred tax liabilities
$
(1,766
)
$
(1,901
)
Net deferred tax assets
$
851
$
939
Reported as:
Current deferred tax assets
$
1,488
$
1,216
Non
-
current deferred tax assets
289
278
Non
-
current deferred tax liabilities
(926
)
(555
)
Net deferred tax assets
$
851
$
939