HP 2007 Annual Report Download - page 130

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 13: Taxes on Earnings (Continued)
The provision for (benefit from) taxes on earnings was as follows for the following fiscal years ended October 31:
2007 2006 2005
In millions
U.S. federal taxes:
Current ...................................................................................................................................... $211 $(443) $687
Deferred .................................................................................................................................... 657 524 (139)
Non-U.S. taxes:
Current ...................................................................................................................................... 1,281 755 598
Deferred .................................................................................................................................... (125) 173 (19)
State taxes:
Current ...................................................................................................................................... 34 (11) 21
Deferred .................................................................................................................................... (145) (5) (3)
$1,913 $993 $1,145
The significant components of deferred tax assets and deferred tax liabilities were as follows for the following fiscal
years ended October 31:
2007 2006
Deferred
Tax
Assets
Deferred
Tax
Liabilities
Deferred
Tax
Assets
Deferred
Tax
Liabilities
In millions
Loss carryforwards ........................................................................ $1,573 $— $558 $—
Credit carryforwards...................................................................... 1,999 — 2,247 —
Unremitted earnings of foreign subsidiaries .................................. — 4,018 — 4,111
Inventory valuation........................................................................ 173 11 135 74
Intercompany transactions—profit in inventory............................ 506 — 519 —
Intercompany transactions—excluding inventory ......................... 1,850 — 1,471 —
Fixed assets.................................................................................... 295 7 362 5
Warranty ........................................................................................ 709 — 670 —
Employee and retiree benefits........................................................ 1,014 543 1,545 553
Accounts receivable allowance...................................................... 190 2 152 —
Capitalized research and development........................................... 1,538 — 1,880 —
Purchased intangible assets............................................................ 48 627 58 445
Restructuring ................................................................................. 75 — 182 —
Equity investments......................................................................... 61 — 54 —
Deferred revenue ........................................................................... 748 — 592 —
Other .............................................................................................. 1,134 112 896 103
Gross deferred tax assets and liabilities ......................................... 11,913 5,320 11,321 5,291
Valuation allowance ...................................................................... (1,543) — (840) —
Total deferred tax assets and liabilities.......................................... $10,370 $5,320 $10,481 $5,291
116