Xilinx Inc. and Subsidiaries - Page 19

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              results consistent with an arm's length result, and to                  
              clarify that under the best method rule, the provisions                 
              of � 1.482-7 set forth the applicable method with                       
              respect to qualified cost sharing arrangements.                         
         Id. at 49000.  Sections 1.482-1 and 1.482-7, Income Tax Regs.,               
         were modified as follows:                                                    
              SEC. 1.482-1. Allocation of Income and Deductions Among                 
              Taxpayers.                                                              
                        *    *    *    *    *    *     *                              
              (2) * * * Section 1.482-7 provides the specific method                  
              to be used to evaluate whether a qualified cost sharing                 
              arrangement produces results consistent with an arm’s                   
              length result.                                                          
                        *    *    *    *    *    *     *                              
              SEC. 1.482-7. Sharing of Costs.                                         
                        *    *    *    *    *    *     *                              
              (3) Coordination with � 1.482-1.--A qualified cost                      
              sharing arrangement produces results that are                           
              consistent with an arm's length result within the                       
              meaning of � 1.482-1(b)(1) if, and only if, each                        
              controlled participant's share of the costs (as                         
              determined under paragraph (d) of this section) of                      
              intangible development under the qualified cost sharing                 
              arrangement equals its share of reasonably anticipated                  
              benefits attributable to such development (as required                  
              by paragraph (a)(2) of this section) and all other                      
              requirements of this section are satisfied.                             
                        *    *    *    *    *    *     *                              
              (2) Stock-based compensation.--(i)* * * a controlled                    
              participant's operating expenses include all costs                      
              attributable to compensation, including stock-based                     
              compensation.  * * * stock-based compensation means any                 
              compensation provided by a controlled participant to an                 
              employee * * * in the form of equity instruments,                       
              options to acquire stock (stock options), or rights                     
              with respect to (or determined by reference to) equity                  
              instruments or stock options, including but not limited                 
              to property to which section 83 applies and stock                       
              options to which section 421 applies, regardless of                     
              whether ultimately settled in the form of cash, stock,                  
              or other property.                                                      





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Last modified: May 25, 2011