MICROSOFT CORP | 2013 | FY | 3


The components of the deferred income tax assets and liabilities were as follows:

 

(In millions)             


June 30,    2013     2012  
Deferred Income Tax Assets             

Stock-based compensation expense

   $ 888      $ 882   

Other expense items

     917        965   

Unearned revenue

     445        571   

Impaired investments

     246        152   

Loss carryforwards

     715        532   

Other revenue items

     55        79   


 


Deferred income tax assets

   $    3,266      $    3,181   

Less valuation allowance

     (579 )      (453 ) 


 


Deferred income tax assets, net of valuation allowance

   $ 2,687      $ 2,728   


 


Deferred Income Tax Liabilities             

International earnings

   $ (1,146 )    $ (1,072 ) 

Unrealized gain on investments

     (1,012 )      (830 ) 

Depreciation and amortization

     (604 )      (670 ) 

Other

     (2 )      (14 ) 


 


Deferred income tax liabilities

   $ (2,764 )    $ (2,586 ) 


 


Net deferred income tax assets (liabilities)

   $ (77 )    $ 142   
    


 


Reported As             

Current deferred income tax assets

   $ 1,632      $ 2,035   

Long-term deferred income tax liabilities

     (1,709 )      (1,893 ) 


 


Net deferred income tax assets (liabilities)

   $ (77 )    $ 142   
    


 



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