Amgen 2009 Annual Report Download - page 139

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Deferred income taxes reflect the temporary differences between the carrying amounts of assets and li-
abilities for financial reporting purposes and the amounts used for income tax purposes, tax credit carryforwards
and the tax effects of net operating loss carryforwards. Significant components of our deferred tax assets and li-
abilities are as follows (in millions):
December 31,
2009 2008
Deferred tax assets:
Intercompany inventory related items .......................................... $ 351 $ 359
Expense accruals ........................................................... 519 576
Acquired net operating loss and credit carryforwards .............................. 178 243
Expenses capitalized for tax .................................................. 177 175
Stock-based compensation ................................................... 229 220
Deferred revenue .......................................................... 128 153
Other .................................................................... 108 111
Total deferred tax assets ................................................... 1,690 1,837
Valuation allowance ........................................................ (92) (106)
Net deferred tax assets .................................................... 1,598 1,731
Deferred tax liabilities:
Acquired intangibles ........................................................ (882) (1,025)
Fixed assets ............................................................... (201) (184)
Other .................................................................... (138) (154)
Total deferred tax liabilities ................................................ (1,221) (1,363)
Total deferred taxes .................................................. $ 377 $ 368
At December 31, 2009 and 2008, we had net current deferred tax assets of $634 million and $859 million,
respectively, primarily composed of temporary differences related to inventory and accrued liabilities. In addi-
tion, at December 31, 2009 and December 31, 2008 we had net non-current deferred tax liabilities of $257
million and $491 million, respectively, primarily composed of temporary differences related to acquired in-
tangibles and fixed assets partially offset by stock-based compensation and deferred revenue.
The valuation allowance for deferred tax assets decreased by $14 million in 2009. The decrease was primar-
ily due to the utilization and expiration of certain acquired net operating loss carryforwards. Valuation
allowances are provided when we believe that our deferred tax assets are not recoverable based on an assessment
of estimated future taxable income that incorporates ongoing, prudent and feasible tax planning strategies.
At December 31, 2009, we had net operating loss carryforwards of $487 million available to reduce future
taxable income in various state taxing jurisdictions. We have provided a valuation allowance against $241 mil-
lion of the state operating loss carryforwards. The state operating loss carryforwards will begin expiring in 2010.
At December 31, 2009, we had $125 million of tax credit carryforwards available to reduce future state in-
come taxes which have no expiration date, and $80 million of state tax credit carryforwards for which a full
valuation allowance has been provided.
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