HP 2013 Annual Report Download - page 142

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 13: Taxes on Earnings (Continued)
As of October 31, 2012, HP had $2.9 billion, $6.2 billion and $25.7 billion of federal, state and
foreign net operating loss carryforwards, respectively. HP had a capital loss carryforward of
approximately $286 million at October 31, 2012. HP provided a valuation allowance of $166 million for
deferred tax assets related to federal and state net operating losses, $104 million for deferred tax assets
related to capital loss carryforwards and $7.6 billion for deferred tax assets related to foreign net
operating loss carryforwards that HP did not expect to realize as of October 31, 2012.
As of October 31, 2013, HP had recorded deferred tax assets for various tax credit carryforwards
as follows:
Initial
Valuation Year of
Carryforward Allowance Expiration
In millions
U.S. foreign tax credits ................................. $3,200 $ 47 2021
U.S. research and development and other credits .............. 653 — 2018
Tax credits in state and foreign jurisdictions .................. 408 239 2014
Balance at end of year ................................. $4,261 $286
Deferred Tax Asset Valuation Allowance
Valuation allowance balance as of October 31, 2013, 2012 and 2011 and changes during fiscal 2013,
2012 and 2011 were as follows:
2013 2012 2011
In millions
Balance at beginning of year .................................. $10,223 $ 9,057 $8,755
Charged to expenses ....................................... 1,644 865 315
Other comprehensive income, currency translation and other .......... (477) 301 (13)
Balance at end of year ...................................... $11,390 $10,223 $9,057
Total valuation allowances increased by $1.2 billion in fiscal 2013 associated primarily with foreign
net operating losses. Total valuation allowances increased by $1.1 billion in fiscal 2012 associated
primarily with the net effects of increases of $1.3 billion, $317 million, and $669 million, respectively, in
valuation allowances on certain U.S. deferred tax assets related to legal entities within the enterprise
services business, other U.S. deferred tax assets, and certain foreign deferred tax assets, respectively,
and a $1.1 billion decrease in foreign valuation allowance attributable to foreign currency translation.
Note 14: Stockholders’ Equity
Dividends
The stockholders of HP common stock are entitled to receive dividends when and as declared by
HP’s Board of Directors. Dividends are paid quarterly. Dividends declared were $0.55 per common
share in fiscal 2013, $0.50 per common share in fiscal 2012 and $0.40 per common share in fiscal 2011.
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