Investor Presentaiton
FORM 10-K
The primary components of deferred income tax assets and liabilities are as follows:
Deferred income tax assets:
Stock compensation
Accrued expenses
Deferred loss and tax credit carryforwards
Inventories and related reserves
Retirement costs for defined benefit and retiree health care
Other
Total deferred income tax assets, before valuation allowance
Valuation allowance
Total deferred income tax assets, after valuation allowance
Deferred income tax liabilities:
Acquisition-related intangibles and fair-value adjustments
International earnings
Total deferred income tax liabilities
Net deferred income tax asset
December 31,
2016
2015
$ 220
$ 244
219
215
214
226
145
147
82
87
81
101
961
1,020
(128)
(186)
833
834
(460)
(565)
(32)
(105)
(492)
(670)
$ 341 $ 164
The deferred income tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as
follows:
Deferred income tax assets
Deferred income tax liabilities
Net deferred income tax asset
December 31,
2016
2015
$ 374 $ 201
(33)
(37)
$ 341
$ 164
We make an ongoing assessment regarding the realization of U.S. and non-U.S. deferred tax assets. This assessment is based on
our evaluation of relevant criteria, including the existence of deferred tax liabilities that can be used to absorb deferred tax assets,
taxable income in prior carryback years and expectations for future taxable income. Changes in valuation allowance balances in
2016 and 2015 of $58 million and $9 million, respectively, impacted Net income by $63 million and $0 million, respectively.
We have U.S. and non-U.S. tax loss carryforwards of approximately $12 million, none of which will expire before the year 2026.
A provision has been made for deferred taxes on undistributed earnings of non-U.S. subsidiaries to the extent that dividend
payments from these subsidiaries are expected to result in additional tax liability. The remaining undistributed earnings of
approximately $9.03 billion as of December 31, 2016, have been indefinitely reinvested outside of the United States; therefore, no
U.S. tax provision has been made for taxes due upon remittance of these earnings. The indefinitely reinvested earnings of our
non-U.S. subsidiaries are primarily invested in working capital and property, plant and equipment. Determination of the amount of
unrecognized deferred income tax liability is not practical because of the complexities associated with its hypothetical calculation.
Cash payments made for income taxes, net of refunds, were $1.15 billion, $1.17 billion and $1.10 billion in 2016, 2015 and
2014, respectively.
Uncertain tax positions
We operate in a number of tax jurisdictions, and our income tax returns are subject to examination by tax authorities in those
jurisdictions who may challenge any item on these tax returns. Because the matters challenged by authorities are typically
complex, their ultimate outcome is uncertain. Before any benefit can be recorded in our financial statements, we must determine
that it is "more likely than not" that a tax position will be sustained by the appropriate tax authorities. We recognize accrued
interest related to uncertain tax positions and penalties as components of OI&E.
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TEXAS INSTRUMENTS . 2016 FORM 10-KView entire presentation