Cisco 2009 Annual Report Download - page 76

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Notes to Consolidated Financial Statements
(c) Deferred Tax Assets and Liabilities
The following table presents the breakdown between current and noncurrent net deferred tax assets (in millions):
July 25, 2009 July 26, 2008
Deferred tax assets — current $ 2,320 $ 2,075
Deferred tax liabilities — current (12) (9)
Deferred tax assets — noncurrent 2,122 1,770
Deferred tax liabilities — noncurrent (57) (80)
Total net deferred tax assets $ 4,373 $ 3,756
The components of the deferred tax assets and liabilities are as follows (in millions):
July 25, 2009 July 26, 2008
ASSETS
Allowance for doubtful accounts and returns $ 300 $ 256
Sales-type and direct-financing leases 226 93
Inventory write-downs and capitalization 238 239
Investment provisions 333 420
In-process R&D, goodwill, and purchased intangible assets 222 343
Deferred revenue 1,475 1,304
Credits and net operating loss carryforwards 817 841
Share-based compensation expense 809 603
Accrued compensation 405 226
Other 600 592
Gross deferred tax assets 5,425 4,917
Valuation allowance (66) (118)
Total deferred tax assets 5,359 4,799
LIABILITIES
Purchased intangible assets (639) (709)
Depreciation (288) (195)
Other (59) (139)
Total deferred tax liabilities (986) (1,043)
Total net deferred tax assets $ 4,373 $ 3,756
As of July 25, 2009, the Company’s federal, state, and foreign net operating loss carryforwards for income tax purposes were $421 million,
$1.9 billion, and $229 million, respectively. If not utilized, the federal net operating loss carryforwards will begin to expire in fiscal 2018, the
state net operating loss carryforwards will begin to expire in fiscal 2010, and the foreign net operating loss carryforwards will begin to
expire in fiscal 2011. As of July 25, 2009, the Company’s federal and state tax credit carryforwards for income tax purposes were
approximately $10 million and $618 million, respectively. If not utilized, the federal and state tax credit carryforwards will begin to expire in
fiscal 2010.
74 Cisco Systems, Inc.