HP 2009 Annual Report Download - page 135

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 14: Taxes on Earnings (Continued)
The significant components of deferred tax assets and deferred tax liabilities were as follows for
the following fiscal years ended October 31:
2009 2008
Deferred Deferred Deferred Deferred
Tax Ta x Tax Ta x
Assets Liabilities Assets Liabilities
In millions
Loss carryforwards ................................ $ 9,191 $ 1,753 $ —
Credit carryforwards .............................. 1,444 — 1,549 —
Unremitted earnings of foreign subsidiaries .............. — 7,555 — 5,683
Inventory valuation ............................... 111 6 169 6
Intercompany transactions — profit in inventory .......... 534 16 553 —
Intercompany transactions — excluding inventory ......... 1,328 — 324 —
Fixed assets ..................................... 119 9 152 8
Warranty ....................................... 794 38 793 —
Employee and retiree benefits ....................... 2,692 80 1,955 123
Accounts receivable allowance ....................... 300 4 299 3
Capitalized research and development .................. 879 — 1,192 —
Purchased intangible assets .......................... 28 1,594 30 1,961
Restructuring .................................... 459 17 596 —
Equity investments ................................ 81 — 70 —
Deferred revenue ................................ 949 12 918 —
Other ......................................... 1,599 82 768 83
Gross deferred tax assets and liabilities ................. 20,508 9,413 11,121 7,867
Valuation allowance ............................... (8,678) — (1,801) —
Total deferred tax assets and liabilities ................. $11,830 $9,413 $ 9,320 $7,867
The breakdown between current and long-term deferred tax assets and deferred tax liabilities was
as follows for the following fiscal years ended October 31:
2009 2008
In millions
Current deferred tax assets .......................................... $4,979 $ 3,920
Current deferred tax liabilities ....................................... (83) (97)
Long-term deferred tax assets ........................................ 1,751 792
Long-term deferred tax liabilities ..................................... (4,230) (3,162)
Total deferred tax assets net of deferred tax liabilities ...................... $2,417 $ 1,453
As of October 31, 2009, HP had $1.0 billion, $3.5 billion and $30.5 billion of federal, state and
foreign net operating loss carryforwards, respectively. Amounts included in each of these respective
totals begin to expire in fiscal 2010. Of the $30.5 billion of foreign net operating losses, $24.1 billion
relates to foreign losses arising in fiscal 2009 pursuant to internal restructuring transactions. HP has
provided a valuation allowance of $218 million for deferred tax assets related to federal and state net
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