Qualcomm 2012 Annual Report Download - page 78

QUALCOMM Incorporated
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
At September 30, 2012 , the Company had unused federal net operating loss carryforwards of $154 million expiring from 2021 through
2030 , unused state net operating loss carryforwards of $591 million expiring from 2013 through 2032 , and unused foreign net operating loss
carryforwards of $41 million , which expire from 2014 through 2021 . At September 30, 2012 , the Company had unused tax credits of $25
million in foreign jurisdictions, which begin to 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 deductions related to share-based awards to
utilize the majority of its deferred tax assets. At September 30, 2012 , the Company has provided a valuation allowance on certain foreign
deferred tax assets, state net operating losses and net capital losses of $114 million , $16 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 2012 , 2011 and 2010 follows (in millions):
September 30,
2012
September 25,
2011
Unearned revenues
$
1,340
$
1,269
Share-based compensation
623
592
Unrealized losses on marketable securities
232
309
Accrued liabilities, reserves and other
131
205
Capital loss carryover
105
40
Capitalized start-up and organizational costs
78
91
Unused net operating losses
50
97
Tax credits
11
145
Unrealized losses on other investments
—
28
Other
91
30
Total gross deferred assets
2,661
2,806
Valuation allowance
(142
)
(98
)
Total net deferred assets
2,519
2,708
Unrealized gains on marketable securities
(552
)
(206
)
Purchased intangible assets
(132
)
(174
)
Property, plant and equipment
(115
)
(85
)
Other
(7
)
(7
)
Total deferred liabilities
(806
)
(472
)
Net deferred assets
$
1,713
$
2,236
Reported as:
Current deferred tax assets
$
309
$
537
Non-current deferred tax assets
1,412
1,703
Current deferred tax liabilities (1)
(1
)
(2
)
Non-current deferred tax liabilities (1)
(7
)
(2
)
$
1,713
$
2,236
(1) Current deferred tax liabilities and non-current deferred tax liabilities were included in other current liabilities and other liabilities, respectively, in the
consolidated balance sheets.
2012 2011 2010
Beginning balance of unrecognized tax benefits
$
96
$
353
$
84
Additions based on prior year tax positions
—
64
223
Reductions for prior year tax positions and lapse in statute of limitations
(18
)
(10
)
(58
)
Additions for current year tax positions
10
12
165
Settlements with taxing authorities
(2
)
(323
)
(61
)
Ending balance of unrecognized tax benefits
$
86
$
96
$
353