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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