Dell 2011 Annual Report Download - page 95

Table of Contents DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The components of Dell's net deferred tax assets are as follows:
February 3,
2012 January 28,
2011
(in millions)
Deferred tax assets:
Deferred revenue $ 486 $ 369
Warranty provisions 226 214
Provisions for product returns and doubtful accounts 85 77
Credit carryforwards 61 54
Loss carryforwards 271 268
Stock-based and deferred compensation 183 203
Operating and compensation related accruals 140 135
Capitalized intangible assets 51 55
Other 97 98
Deferred tax assets 1,600 1,473
Valuation allowance (73) (72)
Deferred tax assets, net of valuation allowance 1,527 1,401
Deferred tax liabilities:
Leasing and financing (220) (49)
Property and equipment (136) (144)
Acquired intangibles (667) (511)
Other (59) (64)
Deferred tax liabilities (1,082) (768)
Net deferred tax assets $ 445 $ 633
Current portion $ 682 $ 558
Non-current portion (237) 75
Net deferred tax assets $ 445 $ 633
The current portion of net deferred tax assets is included in Other current assets in the Consolidated Statements of Financial Position as of February 3, 2012,
and January 28, 2011. The non-current portion of net deferred tax assets is included in Other non-current liabilities and Other non-current assets in the
Consolidated Statements of Financial Position as of February 3, 2012, and January 28, 2011, respectively.
During Fiscal 2012 and Fiscal 2011 , Dell recorded $124 million and $41 million , respectively, of deferred tax assets related to net operating loss and credit
carryforwards acquired during the year, all of which was offset against goodwill. During Fiscal 2012 and Fiscal 2011 , $10 million and $21 million ,
respectively, were recorded to additional paid in capital related to the utilization of acquired net operating losses as a result of employee stock option activity,
and is included in net tax shortfall from employee stock plans on the Consolidated Statements of Stockholders' Equity. Utilization of the acquired
carryforwards is subject to limitations due to ownership changes that may delay the utilization of a portion of the acquired carryforwards. No additional
valuation allowances have been placed on the acquired net operating loss and credit carryforwards. The carryforwards expire beginning in Fiscal 2015.
Deferred taxes have not been recorded on the excess book basis in the shares of certain foreign subsidiaries because these basis differences are not expected to
reverse in the foreseeable future and are expected to be permanent in duration. The basis differences in the amount of approximately $15.9 billion arose
primarily from undistributed book earnings, which Dell intends to reinvest indefinitely. The basis differences could reverse through a sale of the subsidiaries
or the receipt of dividends from the subsidiaries, as well as various other events. Net of available foreign tax credits, residual income tax of approximately
$5.2 billion would be due upon reversal of this excess book basis as of February 3, 2012.
A portion of Dell's operations is subject to a reduced tax rate or is free of tax under various tax holidays. Dell's significant tax holidays expire in whole or in
part during Fiscal 2016 through Fiscal 2021. Many of these tax holidays and reduced tax rates may be extended when certain conditions are met or may be
terminated early if certain conditions are not met. The income tax
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