Intel 1999 Annual Report Download - page 44

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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 used for income tax purposes.
Significant components of the company's deferred tax assets and liabilities at fiscal year-ends were as follows:
U.S. income taxes were not provided for on a cumulative total of approximately $2.2 billion of undistributed earnings for certain non-U.S.
subsidiaries. The company intends to reinvest these earnings indefinitely in operations outside the United States.
The years 1998 and 1997 are currently under examination by the Internal Revenue Service. Management believes that adequate amounts of tax
and related interest and penalties, if any, have been provided for any adjustments that may result for these years.
Page 23
Provision for taxes $3,914 $3,069 $3,714
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(In millions) 1999 1998
------------------------------------------------------------------------------------------------------------------------
DEFERRED TAX ASSETS
Accrued compensation and benefits $ 111 $ 117
Accrued advertising 66 62
Deferred income 182 181
Inventory valuation and related reserves 91 106
Interest and taxes 48 52
Other, net 175 100
------ ------
673 618
DEFERRED TAX LIABILITIES
Depreciation (703) (911)
Acquired intangibles (214) -
Unremitted earnings of certain subsidiaries (172) (152)
Unrealized gain on investments (2,041) (324)
------ ------
(3,130) (1,387)
------ ------
Net deferred tax (liability) $(2,457) $ (769)
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