Citibank 2009 Annual Report Download - page 177

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Deferred income taxes at December 31 related to the following:
In millions of dollars 2009 2008
Deferred tax assets
Credit loss deduction $14,987 $11,242
Deferred compensation and employee benefits 3,626 4,367
Restructuring and settlement reserves 794 1,134
Unremitted foreign earnings 7,140 4,371
Investments —5,312
Cash flow hedges 1,906 3,071
Tax credit and net operating loss carryforwards 20,787 18,424
Intangibles 1,598 —
Other deferred tax assets 1,753 4,158
Gross deferred tax assets $52,591 $52,079
Valuation allowance ——
Deferred tax assets after valuation allowance $52,591 $52,079
Deferred tax liabilities
Investments $ (1,863) $ —
Deferred policy acquisition costs
and value of insurance in force (791) (805)
Fixed assets and leases (677) (2,209)
Interest related items (683) (543)
Intangibles —(2,365)
Credit valuation adjustment on Company-issued debt (264) (1,473)
Other deferred tax liabilities (2,261) (215)
Gross deferred tax liabilities $ (6,539) $ (7,610)
Net deferred tax asset $46,052 $44,469
The following is a roll-forward of the Company’s unrecognized tax
benefits.
In millions of dollars 2009 2008 2007
Total unrecognized tax benefits at January 1, $3,468 $3,698 $3,144
Net amount of increases for current year’s tax positions 195 254 1,100
Gross amount of increases for prior years’ tax positions 392 252 120
Gross amount of decreases for prior years’ tax positions (870) (581) (341)
Amounts of decreases relating to settlements (104) (21) (349)
Reductions due to lapse of statutes of limitation (12) (30) (50)
Foreign exchange, acquisitions and dispositions 10 (104) 74
Total unrecognized tax benefits at December 31, $3,079 $3,468 $3,698
Total amount of unrecognized tax benefits at December 31, 2009, 2008
and 2007 that, if recognized, would affect the effective tax rate are $2.2
billion, $2.4 billion and $1.9 billion, respectively. The remainder of the
uncertain tax positions have offsetting amounts in other jurisdictions or are
temporary differences.
Interest and penalties (not included in the “unrecognized tax benefits”
above) are a component of the Provision for income taxes.
2009 2008 2007
In millions of dollars Pretax Net of tax Pretax Net of tax Pretax Net of tax
Total interest and penalties in the balance sheet at January 1, $ 663 $ 420 $618 $389 $532 $335
Total interest and penalties in the statement of operations (250) (154) 114 81 93 58
Total interest and penalties in the balance sheet at December 31, (1) 370 239 663 420 618 389
(1) Includes $9 million for foreign penalties.