Table of Contents APPLIED MATERIALS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. The components of deferred income tax assets and liabilities were as follows:  The following table presents a summary of non-current deferred tax assets and liabilities: October 27, 2019 October 28, 2018 (In millions) Deferred tax assets: Allowance for doubtful accounts $ 8  $ 8  Inventory reserves and basis difference 117  117  Installation and warranty reserves 11  7  Intangible assets 1,472  —  Accrued liabilities 15  20  Deferred revenue 36  12  Tax credits 264  236  Deferred compensation 98  79  Share-based compensation 36  37  Other 58  45  Gross deferred tax assets 2,115  561  Valuation allowance (257) (230) Total deferred tax assets 1,858  331  Deferred tax liabilities: Fixed assets (65) (48) Intangible assets —  (38) Undistributed foreign earnings (38) (32) Total deferred tax liabilities (103) (118) Net deferred tax assets $ 1,755  $ 213  2019 2018 2017 (In millions) Beginning balance $ 230  $ 227  $ 207  Increases 27  8  20  Decreases —  (5) —  Ending balance $ 257  $ 230  $ 227  October 27, 2019 October 28, 2018 (In millions) Non-current deferred tax asset $ 1,766  $ 225  Non-current deferred tax liability (11) (12) $ 1,755  $ 213  A valuation allowance is recorded to reflect the estimated amount of net deferred tax assets that may not be realized. Changes in the valuation allowance in each fiscal year were as follows: 99