Avon 2009 Annual Report Download - page 77

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NOTE 5. Accumulated Other
Comprehensive Loss
Accumulated other comprehensive loss at December 31 consisted
of the following:
2009 2008
Foreign currency translation adjustments $(198.6) $(406.2)
Unrealized (losses) gains from
available-for-sale securities, net of taxes
of $0 and $.1 –(.3)
Pension and postretirement adjustment,
net of taxes of $233.6 and $266.8 (475.2) (532.2)
Net derivative losses from cash flow
hedges, net of taxes of $10.1 and $14.8 (18.8) (27.2)
Total $(692.6) $(965.9)
Foreign exchange gains (losses) of $(14.5) for 2009 and $25.4
for 2008 resulting from the translation of actuarial losses, prior
service credit and translation obligation recorded in Accumulated
Other Comprehensive Income (“AOCI”) are included in foreign
currency translation adjustments in the rollforward of accumu-
lated other comprehensive loss on the Consolidated Statements
of Changes in Shareholders Equity.
NOTE 6. Income Taxes
Deferred taxassets (liabilities) resulting from temporary differences
in the recognition of income and expense for tax and financial
reporting purposes at December 31 consisted of the following:
2009 2008
Deferred tax assets:
Accrued expenses and reserves $261.8 $212.4
Pension and postretirement benefits 169.1 199.3
Asset revaluations 83.3 52.7
Capitalized expenses 66.4 46.0
Share-based compensation 60.0 51.3
Restructuring initiatives 30.0 12.9
Postemployment benefits 18.2 17.0
Foreign tax loss carryforwards 373.4 300.9
Foreign tax credit carryforwards 144.2 93.9
Minimum tax credit carryforwards 32.9 32.5
All other 49.6 35.5
Valuation allowance (394.1) (284.1)
Total deferred tax assets 894.8 770.3
Deferred tax liabilities:
Depreciation and amortization (42.2) (45.3)
Unremitted foreign earnings (26.2) (19.1)
Prepaid expenses (13.5) (14.1)
Capitalized interest (7.7) (6.1)
All other (21.0) (31.9)
Total deferred tax liabilities (110.6) (116.5)
Net deferred tax assets $784.2 $653.8
Deferred tax assets (liabilities) at December 31 were classified
as follows:
2009 2008
Deferred tax assets:
Prepaid expenses and other $303.2 $194.6
Other assets 527.3 502.5
Total deferred tax assets 830.5 697.1
Deferred tax liabilities:
Income taxes (.2) (7.0)
Long-term income taxes (46.1) (36.3)
Total deferred tax liabilities (46.3) (43.3)
Net deferred tax assets $784.2 $653.8
AVON2009 F-13