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| <NonNumbericText> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: arial" size="2">Note 15. Income Taxes</font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">Income before income taxes included income from domestic operations of $2,059 million, $3,579 million, and $4,948 million for 2008, 2009, and 2010, and income from foreign operations of $3,794 million, $4,802 million, and $5,848 million for 2008, 2009, and 2010. Substantially all of the income from foreign operations was earned by an Irish subsidiary.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">The provision for income taxes consists of the following (in millions):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="79%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: arial" size="1">Year Ended December 31,</font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2008</font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2009</font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2010</font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Current:</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,348</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,531</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,657</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">State</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">468</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">450</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">458</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">91</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">148</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">167</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: arial" size="2">Total</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,907</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">2,129</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">2,282</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Deferred:</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(198</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(273</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(25</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">State</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(63</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">13</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">47</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(13</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: arial" size="2">Total</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(281</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(268</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Provision for income taxes</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,626</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,861</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">2,291</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> </tr> </table> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> </p> <p style="MARGIN-TOP: 18px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows (in millions):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="77%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: arial" size="1">Year ended December 31,</font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2008</font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2009</font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2010</font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Expected provision at federal statutory tax rate (35%)</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">2,049</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">2,933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">3,779</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">State taxes, net of federal benefit</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">263</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">302</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">322</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Stock-based compensation expense</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">91</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">63</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">79</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Change in valuation allowance</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">313</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(41</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(34</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Foreign rate differential</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(1,020</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(1,339</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(1,769</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Federal research credit</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(52</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(56</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(84</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Tax exempt interest</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(52</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(15</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(12</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Other permanent differences</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">34</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">14</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Provision for income taxes</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,626</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,861</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">2,291</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">We have not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December 31, 2010 because we intend to permanently reinvest such earnings outside the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December 31, 2010, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $17.5 billion. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: arial" size="2">Deferred Tax Assets</font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in millions):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" colspan="6" align="center"> <p style="BORDER-BOTTOM: #000000 1px solid; WIDTH: 67pt" align="center"><font style="FONT-FAMILY: arial" size="1">As of December 31,</font></p> </td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2009</font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: arial" size="1">2010</font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Deferred tax assets:</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Stock-based compensation expense</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">274</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">299</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">State taxes</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">162</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">207</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Capital loss from impairment of equity investments</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">420</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">292</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Settlement with the Authors Guild and AAP</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">39</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">39</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Depreciation and amortization</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">135</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Vacation accruals</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">27</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">35</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Deferred rent</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">44</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">34</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Accruals and reserves not currently deductible</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">216</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">42</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Unrealized losses on investments and other</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">52</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">95</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Acquired net operating losses</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">61</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">132</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Other</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">17</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">26</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: arial" size="2">Total deferred tax assets</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,447</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,221</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: arial" size="2">Valuation allowance</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(326</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(292</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: arial" size="2">Total deferred tax assets net of valuation allowance</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,120</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">929</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Deferred tax liabilities:</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Identified intangibles</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(210</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(308</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Other prepaids</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(95</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">)</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: arial" size="2">Other</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: arial" size="2">Total deferred tax liabilities</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(213</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(405</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Net deferred tax assets</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">907</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">524</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> </tr> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> </p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">As of December 31, 2010, our federal and state net operating loss carryforwards for income tax purposes were approximately $362 million and $252 million. If not utilized, the federal net operating loss carryforwards will begin to expire in 2018 and the state net operating loss carryforwards will begin to expire in 2015. The net operating loss carryforwards are subject to various annual limitations under Section 382 of the Internal Revenue Code.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">In 2008, we recorded an impairment charge of $1.1 billion related primarily to our investments in AOL and Clearwire. For income tax purposes, the impairment would generate an equal amount of capital loss when recognized, a portion of which was recognized in 2009. As of December 31, 2010, our federal and state capital loss carryforwards for income tax purposes were approximately $682 million and $936 million. If not utilized, the recognized federal and state capital losses of $327 million and $581 million will begin to expire in 2014. We believe it is more likely than not that a portion of the capital loss carryforwards will not be realized. Therefore, we have recorded a valuation allowance on both our federal and state capital loss carryforwards in the amount of $292 million. We will reassess the valuation allowance quarterly and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: arial" size="2">Uncertain Tax Positions</font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2008 to December 31, 2010 (in millions):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="93%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Balance as of January 1, 2008</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">387</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Increases related to prior year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">112</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Decreases related to prior year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(15</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Increases related to current year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">237</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Balance as of December 31, 2008</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">721</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Increases related to prior year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">222</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Decreases related to prior year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(1</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Increases related to current year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Balance as of December 31, 2009</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,188</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Increases related to prior year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">37</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Decreases related to prior year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(197</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-TOP: 0px; TEXT-INDENT: -1em; MARGIN-BOTTOM: 1px; MARGIN-LEFT: 1em"> <font style="FONT-FAMILY: arial" size="2">Decreases relating to settlement with tax authorities</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(47</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Decreases as a result of a lapse of applicable statute of limitation</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">(97</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Increases related to current year tax positions</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2"> </font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">256</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: arial" size="2">Balance as of December 31, 2010</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="FONT-FAMILY: arial" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: arial" size="2">1,140</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: arial" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> </td> <td> </td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $561 million, $814 million, and $951 million as of December 31, 2008, 2009 and 2010.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">As of December 31, 2009 and 2010, we had accrued $100 million and $97 million for payment of interest and penalties. Interest and penalties included in our provision for income taxes were not material in all the periods presented.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">We and our subsidiaries are routinely examined by various taxing authorities. Although we file U.S. federal, U.S. state, and foreign tax returns, our two major tax jurisdictions are the U.S. and Ireland. During the three months ended December 31, 2007, the IRS completed its examination of our 2003 and 2004 tax years. We have filed an appeal with the IRS for certain issues related to this audit and no resolution of the issues has been achieved at this time but we believe we have adequately provided for these items and any adverse results would have an immaterial impact on our unrecognized tax benefit balance within the next 12 months. The IRS has completed its examination of our 2005 and 2006 tax years. As a result, we settled and released certain tax reserves in the three months ended September 30, 2010. The IRS commenced its examination of our 2007 and 2008 tax years in early 2010. We do not expect the examination to be completed within the next 12 months. Therefore, we do not anticipate any significant impact to our unrecognized tax benefit balance in 2011, related to our 2007 and 2008 tax years.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: arial" size="2">Our 2009 and 2010 tax years remain subject to examination by the IRS for U.S. federal tax purposes, and our 2003 through 2010 tax years remain subject to examination by the appropriate governmental agencies for Irish tax purposes. There are various other ongoing audits in various other jurisdictions that are not material to our financial statements.</font></p> </div> </NonNumbericText> |
| <NonNumericTextHeader> Note 15. Income Taxes Income before income taxes included income from domestic operations of $2,059 million, $3,579 million, and </NonNumericTextHeader> |
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| | | <ElementReferences> Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 </ElementReferences> |
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