HP 2013 Annual Report Download - page 141

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 13: Taxes on Earnings (Continued)
Deferred Income Taxes
The significant components of deferred tax assets and deferred tax liabilities were as follows for
the following fiscal years ended October 31:
2013 2012
Deferred Deferred Deferred Deferred
Tax Ta x Ta x Tax
Assets Liabilities Assets Liabilities
In millions
Loss carryforwards .............................. $ 9,807 $ — $ 9,142 $ —
Credit carryforwards ............................. 4,261 — 3,884 —
Unremitted earnings of foreign subsidiaries ............ — 7,469 — 7,559
Inventory valuation .............................. 128 13 185 12
Intercompany transactions—profit in inventory .......... 125 — 463 —
Intercompany transactions—excluding inventory ......... 1,923 — 881 —
Fixed assets ................................... 289 72 349 65
Warranty ..................................... 622 — 663 —
Employee and retiree benefits ...................... 2,350 11 3,264 16
Accounts receivable allowance ...................... 185 1 161 2
Intangible assets ................................ 224 886 264 1,111
Restructuring .................................. 340 — 225 —
Deferred revenue ............................... 1,119 19 969 16
Other ........................................ 1,443 759 1,107 367
Gross deferred tax assets and liabilities ................ 22,816 9,230 21,557 9,148
Valuation allowance ............................. (11,390) — (10,223) —
Net deferred tax assets and liabilities ................. $11,426 $9,230 $ 11,334 $9,148
Current and long-term deferred tax assets and liabilities are presented in the Consolidated Balance
Sheets as follows for the following fiscal years ended October 31:
2013 2012
In millions
Current deferred tax assets .......................................... $3,893 $ 3,783
Current deferred tax liabilities ....................................... (375) (230)
Long-term deferred tax assets ........................................ 1,346 1,581
Long-term deferred tax liabilities ..................................... (2,668) (2,948)
Net deferred tax assets net of deferred tax liabilities ....................... $2,196 $ 2,186
As of October 31, 2013, HP had $1.4 billion, $5.6 billion and $30.8 billion of federal, state and
foreign net operating loss carryforwards, respectively. Amounts included in each of these respective
totals will begin to expire in fiscal 2014. HP also has a capital loss carryforward of approximately
$272 million which will expire in fiscal 2015. HP has provided a valuation allowance of $162 million for
deferred tax assets related to state net operating losses, $104 million for deferred tax assets related to
capital loss carryforwards and $8.9 billion for deferred tax assets related to foreign net operating loss
carryforwards that HP does not expect to realize.
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