Amgen 2012 Annual Report Download - page 118

F-19
Significant components of our deferred tax assets and liabilities are as follows as of December 31, 2012 and 2011 (in millions):
2012 2011
Deferred income tax assets (1):
Expense accruals $ 805 $ 751
NOL and credit carryforwards 427 206
Expenses capitalized for tax 195 193
Stock-based compensation 115 241
Deferred revenue 40 133
Other 83 70
Total deferred income tax assets 1,665 1,594
Valuation allowance (273)(126)
Net deferred income tax assets 1,392 1,468
Deferred income tax liabilities:
Acquired intangibles (1,249)(832)
Fixed assets (117)(219)
Unremitted foreign earnings (106)(61)
Other (145)(110)
Total deferred income tax liabilities (1,617)(1,222)
Total deferred income taxes, net $(225) $ 246
(1) In 2012, we reclassified certain prior period amounts to conform with current period reporting, primarily in connection
with reclassifying prepaid taxes associated with intercompany profit in ending inventory from current deferred tax
assets to prepaid taxes. Prepaid taxes are not included in the net deferred income tax table above; therefore, amounts
related to these prepaid taxes which totaled $349 million for 2011 have been removed from the above table.
Valuation allowances are provided to reduce the amounts of our deferred tax assets to an amount that is more likely than
not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary
to realize future deductible amounts.
The valuation allowance for deferred tax assets increased by $147 million and $46 million in 2012 and 2011, respectively,
due primarily to valuation allowances established as part of acquisitions and the Company’s expectation that some state R&D
credits will not be utilized, offset partially by the release of valuation allowance related to state investment credits.
At December 31, 2012, we had $242 million of tax credit carryforwards available to reduce future state income taxes and
have provided a valuation allowance for $110 million of those state tax credit carryforwards. The majority of the state tax credit
carryforwards have no expiry; the remainder expires between 2013 and 2019.
At December 31, 2012, we had $233 million of NOL carryforwards available to reduce future federal income taxes and have
provided a valuation allowance for $75 million of those federal NOL carryforwards. The federal NOL carryforwards for which
no valuation allowance has been provided expire between 2023 and 2032. We had $301 million of NOL carryforwards available
to reduce future state income taxes and have provided a valuation allowance for $48 million of those state NOL carryforwards.
The state NOLs for which no valuation allowance has been provided expire between 2014 and 2018. We had $383 million of NOL
carryforwards available to reduce future foreign income taxes for which a full valuation allowance has been provided. The majority
of the foreign NOLs have no expiry; the remainder of the foreign NOLs expire between 2017 and 2022.