Intel 2007 Annual Report Download - page 88

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities
for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets
and liabilities at fiscal year-ends were as follows:
We had state tax credits of $155 million at December 29, 2007 that will expire between 2009 and 2020. The net deferred tax
asset valuation allowance was $133 million at December 29, 2007 compared to $87 million at December 30, 2006. The
valuation allowance is based on our assessment that it is more likely than not that certain deferred tax assets will not be
realized in the foreseeable future. The valuation allowance is composed of unrealized state capital loss carry forwards and
unrealized state credit carry forwards of $91 million, and operating loss of non-U.S. subsidiaries of $42 million.
As of December 29, 2007, U.S. income taxes were not provided for on a cumulative total of approximately $6.3 billion of
undistributed earnings for certain non-U.S.
subsidiaries. Determination of the amount of unrecognized deferred tax liability for
temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not
practicable. We currently intend to reinvest those earnings in operations outside the U.S.
79
(In Millions)
2007
2006
Deferred tax assets
Accrued compensation and other benefits
$
438
$
284
Accrued advertising
29
—
Deferred income
222
217
Share
-
based compensation
542
385
Inventory valuation
315
268
Impairment losses on equity investments
116
89
State credits and net operating losses
133
115
Intercompany profit in inventory
123
133
Unremitted earnings of
non
-
U.S.
subsidiaries
32
54
Other, net
331
272
2,281
1,817
Valuation allowance
(133
)
(87
)
Total deferred tax assets
$
2,148
$
1,730
Deferred tax liabilities
Depreciation and amortization
$
(759
)
$
(530
)
Accrued advertising
—
(
66
)
Unrealized gains on investments
(227
)
(149
)
Other, net
(106
)
(111
)
Total deferred tax liabilities
$
(1,092
)
$
(856
)
Net deferred tax assets
$
1,056
$
874
Reported as:
Current deferred tax assets
$
1,186
$
997
Current deferred tax liabilities
1
—
(
8
)
Non
-
current deferred tax assets
2
281
150
Non
-
current deferred tax liabilities
(411
)
(265
)
Net deferred taxes
$
1,056
$
874
1
Included within other accrued liabilities on the consolidated balance sheets.
2
Included within other long
-
term assets on the consolidated balance sheets.