Dell 2011 Annual Report Download - page 94

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Table of Contents DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 11 — INCOME AND OTHER TAXES
The provision for income taxes consists of the following:
Fiscal Year Ended
February 3,
2012 January 28,
2011 January 29,
2010
(in millions)
Current:
Federal $ 375 $ 597 $ 491
State/Local 81 66 36
Foreign 273 97 116
Current 729 760 643
Deferred:
Federal 62 (95) (21)
State/Local (12) 9 9
Foreign (31) 41 (40)
Deferred 19 (45) (52)
Provision for income taxes $ 748 $ 715 $ 591
Income before provision for income taxes consists of the following:
Fiscal Year Ended
February 3,
2012 January 28,
2011 January 29,
2010
(in millions)
Domestic $ 365 $ 532 $ 182
Foreign 3,875 2,818 1,842
Income before income taxes $ 4,240 $ 3,350 $ 2,024
Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax and book basis of assets and liabilities,
and are recognized based on the enacted statutory tax rates for the year in which Dell expects the differences to reverse. A valuation allowance is established
against a deferred tax asset when it is more likely than not that the asset or any portion thereof will not be realized. Based upon all the available evidence,
including expectation of future taxable income, Dell has provided a valuation allowance of $44 million and $48 million f or Fiscal 2012 and Fiscal 2011 ,
respectively, related to state income tax credit carryforwards. Dell has provided a valuation allowance of $29 million and $20 million related to net operating
losses for Fiscal 2012 and Fiscal 2011, respectively. No valuation allowance has been provided against other deferred tax assets for Fiscal 2012, compared to
a $4 million valuation allowance provided against other deferred tax assets for Fiscal 2011. Dell has determined that it will be able to realize the remainder of
its deferred tax assets.
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