Dell 2009 Annual Report Download - page 87

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 10 — INCOME AND OTHER TAXES
Income before income taxes included approximately $1.8 billion, $2.7 billion, and $3.3 billion related to foreign operations in Fiscal
2010, 2009, and 2008, respectively.
The provision for income taxes consisted of the following:
Fiscal Year Ended
January 29, January 30, February 1,
2010 2009 2008
(in millions)
Current:
Domestic $ 527 $ 465 $ 901
Foreign 116 295 287
Current 643 760 1,188
Deferred:
Domestic (12) 15 (230)
Foreign (40) 71 (78)
Deferred (52) 86 (308)
Provision for income taxes $ 591 $ 846 $ 880
Deferred tax assets and liabilities for the estimated tax impact of temporary differences between the tax and book basis of assets and
liabilities are recognized based on the enacted statutory tax rates for the year in which Dell expects the differences to reverse. A valuation
allowance is established against a deferred tax asset when it is more likely than not that the asset or any portion thereof will not be
realized. Based upon all the available evidence including expectation of future taxable income, Dell has provided a valuation allowance
of $41 million and $31 million for Fiscal 2010 and 2009, respectively, related to state income credit carryforwards, and $22 million
related to net operating losses for Fiscal 2010. Dell has determined that it will be able to realize the remainder of its deferred tax assets.
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