Qualcomm 2011 Annual Report Download - page 83

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QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) Current deferred tax liabilities and non-current deferred tax liabilities are included in other current liabilities and other liabilities, respectively, in the
consolidated balance sheets.
At September 25, 2011 , the Company had unused federal net operating loss carryforwards of $167 million expiring from 2021 through
2029 , unused state net operating loss carryforwards of $352 million expiring from 2012 through 2031 , and unused foreign net operating loss
carryforwards of $76 million , which expire from 2012 through 2020 . At September 25, 2011 , the Company had unused tax credits of $20
million in foreign jurisdictions, which expire in 2013 . The Company does not expect its federal net operating loss carryforwards and its state
income tax credits to expire unused.
The Company believes, more likely than not, that it will have sufficient taxable income after stock option related deductions to utilize the
majority of its deferred tax assets. At September 25, 2011 , the Company has provided a valuation allowance on certain foreign deferred tax
assets, state net operating losses and net capital losses of $76 million , $10 million and $12 million , respectively. The valuation allowances
reflect the uncertainties surrounding the Company’s ability to generate sufficient future taxable income in certain foreign and state tax
jurisdictions to utilize its net operating losses and the Company
’s ability to generate sufficient capital gains to utilize all capital losses.
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2011 , 2010 and 2009 follows (in millions):
September 25,
2011
September 26,
2010
Accrued liabilities, reserves and other
$
205
$
287
Share-based compensation
592
615
Capitalized start-up and organizational costs
91
102
Unearned revenues
1,269
1,311
Unrealized losses on marketable securities
309
341
Unrealized losses on other investments
28
27
Capital loss carryover
40
37
Tax credits
145
54
Unused net operating losses
97
64
Other basis differences
30
10
Total gross deferred assets
2,806
2,848
Valuation allowance
(98
)
(39
)
Total net deferred assets
2,708
2,809
Purchased intangible assets
(174
)
(108
)
Deferred contract costs
(7
)
(6
)
Unrealized gains on marketable securities
(206
)
(352
)
Property, plant and equipment
(85
)
(100
)
Total deferred liabilities
(472
)
(566
)
Net deferred assets
$
2,236
$
2,243
Reported as:
Current deferred tax assets
$
537
$
321
Non-current deferred tax assets
1,703
1,922
Current deferred tax liabilities (1)
(2
)
—
Non-current deferred tax liabilities (1)
(2
)
—
$
2,236
$
2,243
2011
2010
2009
Beginning balance of unrecognized tax benefits
$
353
$
84
$
244
Additions based on prior year tax positions
64
223
39
Reductions for prior year tax positions
(10
)
(58
)
(202
)
Additions for current year tax positions
12
165
3
Settlements with taxing authorities
(323
)
(61
)
—
Ending balance of unrecognized tax benefits
$
96
$
353
$
84