Dell 2009 Annual Report Download - page 88

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The components of Dell's net deferred tax asset are as follows:
January 29, January 30,
2010 2009
(in millions)
Deferred tax assets:
Deferred revenue $ 610 $ 633
Inventory and warranty provisions 13 36
Provisions for product returns and doubtful accounts 60 53
Leasing and financing 191 242
Credit carryforwards 51 47
Loss carryforwards 173 88
Stock-based and deferred compensation 225 233
Operating accruals 25 33
Compensation related accruals 25 48
Other 56 85
Deferred tax assets 1,429 1,498
Valuation allowance (63) (31)
Deferred tax assets, net of valuation allowance 1,366 1,467
Deferred tax liabilities:
Property and equipment (142) (160)
Acquired intangibles (478) (167)
Unrealized gains - (14)
Other (65) (59)
Deferred tax liabilities (685) (400)
Net deferred tax asset $ 681 $ 1,067
Current portion (included in other current assets) $ 444 $ 499
Non-current portion (included in other non-current assets) 237 568
Net deferred tax asset $ 681 $ 1,067
During Fiscal 2010, Dell recorded $26 million of deferred tax assets related to acquired net operating loss and credit carryforwards, net of
valuation allowances of $17 million. The offset for recording the acquired net operating loss and credit carryforwards was $9 million to
goodwill. During Fiscal 2009, Dell recorded $76 million of deferred tax assets related to net operating loss and credit carryforwards
acquired during the year. The offset for recording the acquired net operating loss and credit carryforwards was $56 million to goodwill
and $20 million to additional paid in capital. 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 for significant taxing jurisdictions expire beginning in Fiscal
2017.
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. These basis differences in
the amount of approximately $11.3 billion arose primarily from the undistributed book earnings of substantially all of the subsidiaries in
which Dell intends to reinvest indefinitely. The basis
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