DELPHI 2013 Annual Report Download - page 115

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93
Deferred Income Taxes
The Company accounts for income taxes and the related accounts under the liability method. Deferred income tax assets
and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting
purposes and the bases of such assets and liabilities as measured by tax laws. Significant components of the deferred tax assets
and liabilities are as follows:
December 31,
2013 2012
(in millions)
Deferred tax assets:
Pension ........................................................................................................................ $ 208 $ 200
Employee benefits ....................................................................................................... 28 19
Net operating loss carryforwards................................................................................. 614 471
Warranty and other liabilities...................................................................................... 125 127
Other............................................................................................................................ 126 147
Total gross deferred tax assets..................................................................................... 1,101 964
Less: valuation allowances.......................................................................................... (642)(502)
Total deferred tax assets (1)...................................................................................... $ 459 $ 462
Deferred tax liabilities:
Fixed assets.................................................................................................................. $ 39 $ 48
Tax on unremitted profits of certain foreign subsidiaries............................................ 59 31
Intangibles ................................................................................................................... 97 151
Total gross deferred tax liabilities............................................................................. 195 230
Net deferred tax assets.......................................................................................... $ 264 $ 232
(1) Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities.
Net current and non-current deferred tax assets and liabilities are included in the consolidated balance sheets as follows:
December 31,
2013 2012
(in millions)
Current assets............................................................................................................... $ 133 $ 148
Current liabilities......................................................................................................... (1)(12)
Long-term assets.......................................................................................................... 283 281
Long-term liabilities.................................................................................................... (151)(185)
Total deferred tax asset......................................................................................... $ 264 $ 232
The net deferred tax assets of $264 million as of December 31, 2013 are primarily comprised of deferred tax asset
amounts in the U.K., Germany, and China.
Net Operating Loss and Tax Credit Carryforwards
As of December 31, 2013, the Company has gross deferred tax assets of approximately $614 million for non-U.S. net
operating loss (“NOL”) carryforwards with recorded valuation allowances of $552 million. These NOL’s are available to offset
future taxable income and realization is dependent on generating sufficient taxable income prior to expiration of the loss
carryforwards. The NOL’s primarily relate to France, Luxembourg, and Spain. The NOL carryforwards have expiration dates
ranging from one year to an indefinite period.
Deferred tax assets include $31 million and $30 million of tax credit carryforwards with recorded valuation allowances of
$25 million and $24 million at December 31, 2013 and 2012, respectively. These tax credit carryforwards expire in 2014
through 2023.