QUALCOMM Incorporated Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Sep. 25, 2011

Notes to Financial Statements [Abstract]

The components of the income tax provision were as follows (in millions):



	2011			2010			2009
Current provision:
Federal	$	179		$	1,514		$	268
State	57			242			71
Foreign	670			389			291
	906			2,145			630
Deferred provision:
Federal	170			(1,139		)	(72		)
State	62			(26		)	72
Foreign	(6		)	(7		)	(19		)
	226			(1,172		)	(19		)
	$	1,132		$	973		$	611

Components of income before income taxes

The components of income from continuing operations before income taxes by United States and foreign jurisdictions were as follows (in millions):



	2011		2010		2009
United States	$	2,984	$	2,195	$	1,368
Foreign	2,703		2,298		1,035
	$	5,687	$	4,493	$	2,403

Reconciliation of the expected statutory federal income tax provision to actual income tax provision

The following is a reconciliation of the expected statutory federal income tax provision to the Company’s actual income tax provision for continuing operations (in millions):



	2011			2010			2009
Expected income tax provision at federal statutory tax rate	$	1,991		$	1,573		$	841
State income tax provision, net of federal benefit	283			226			113
Foreign income taxed at other than U.S. rates	(1,074		)	(897		)	(407		)
Tax audit impacts, net	1			3			(155		)
Tax credits	(151		)	(55		)	(112		)
Valuation allowance	42			(40		)	227
Revaluation of deferred taxes	69			152			74
Other	(29		)	11			30
	$	1,132		$	973		$	611

Deferred tax assets and deferred tax liabilities

The Company had deferred tax assets and deferred tax liabilities as 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

⁽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.

Changes in the amount of unrecognized tax benefits

A summary of the changes in the amount of unrecognized tax benefits for fiscal 2011, 2010 and 2009 follows (in millions):



	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