Motorola 2009 Annual Report Download - page 108

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100
Tax carryforwards are as follows:
Gross Tax Expiration
December 31, 2009 Tax Loss Effected Period
United States:
U.S. tax losses $ 694 $ 243 2018-2028
Foreign tax credits n/a 1,972 2011-2019
General business credits n/a 343 2017-2029
Minimum tax credits n/a 109 Unlimited
State tax losses 3,758 115 2010-2029
State tax credits n/a 51 2010-2025
Non-U.S. Subsidiaries:
Brazil tax losses 195 66 Unlimited
China tax losses 76 16 2012-2014
United Kingdom tax losses 272 76 Unlimited
Germany tax losses 290 84 Unlimited
Singapore tax losses 138 23 Unlimited
Other subsidiaries tax losses 84 26 Various
Spain tax credits n/a 32 2014-2022
Other subsidiaries tax credits n/a 84 Unlimited
$3,240
The Company had unrecognized tax benefits of $466 million and $914 million at December 31, 2009 and
December 31, 2008, respectively, of which approximately $100 million and $580 million, respectively, if
recognized, would affect the effective tax rate, net of resulting changes to valuation allowances.
A roll-forward of unrecognized tax benefits, including those attributable to discontinued operations, is as
follows:
2009 2008
Balance at January 1 $ 914 $1,400
Additions based on tax positions related to current year 29 46
Additions for tax positions of prior years 60 141
Reductions for tax positions of prior years (96) (642)
Settlements (439) (31)
Lapse of statute of limitations (2) —
Balance at December 31 $ 466 $ 914
During the second quarter of 2009, the Company concluded its Internal Revenue Service (‘‘IRS’’) audits for
tax years 1996-2003. As a result of the foregoing and resolution of certain Non-U.S. audits, the Company
reduced its unrecognized tax benefits by $463 million, of which $31 million was recognized as a tax benefit and
the remainder primarily reduced tax carry forwards and other deferred tax assets. In relation to the Company’s
1996-2003 IRS audit resolution, the Company received a $126 million tax refund and $62 million interest refund
during the third quarter of 2009. The refunds primarily relate to tax refund claims dating prior to the 1996-2003
audit cycle, which were held pending the final resolution of the 1996-2003 audit cycle. In the fourth quarter of
2009, the Company recognized $16 million of previously unrecognized tax benefits, which resulted from the
favorable resolution of a matter with Non-U.S. tax authorities.