Henry Schein 2009 Annual Report Download - page 95

HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
83
Note 10 – Income Taxes – (Continued)
The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were
as follows:
December 26,
2009
December 27,
2008 (1)
Current deferred income tax assets:
Inventory, premium coupon redemptions and accounts receivable
valuation allowances .............................................................................. 18,734$ 12,348$
Uniform capitalization adjustments to inventories ...................................... 9,690 8,712
Other current assets ..................................................................................... 6,742 2,497
Current deferred income tax asset (3) ......................................................... 35,166 23,557
Non-current deferred income tax asset (liability):
Property and equipment .............................................................................. (14,658) (14,321)
Stock-based compensation .......................................................................... 35,312 28,275
Other non-current liabilities ........................................................................ (120,737) (110,802)
Net operating losses of domestic subsidiaries ............................................. 9,411 8,537
Net operating losses of foreign subsidiaries ................................................ 58,980 75,562
Total non-current deferred tax liability .................................................. (31,692) (12,749)
Valuation allowance for non-current deferred tax assets (2) ................. (36,083) (67,418)
Net non-current deferred tax liability (3) ................................................... (67,775) (80,167)
Net deferred income tax liability ...................................................................... (32,609)$ (56,610)$
Years Ended
(1) Adjusted to reflect the effects of the adoption of provisions contained within ASC Topic 470-20, “Debt with Conversion
and Other Options.”
(2) Primarily relates to operating losses of acquired foreign subsidiaries, the benefits of which are uncertain. Any future
reductions of such valuation allowances will be reflected as a reduction of income tax expense in accordance with the
provisions of ASC Topic 805, “Business Combinations.”
(3) Certain deferred tax amounts do not have a right of offset and are therefore reflected on a gross basis in current assets and
non-current liabilities in our consolidated balance sheets.
The deferred income tax asset is realizable as we have sufficient taxable income in prior years and
anticipate sufficient taxable income in future years to realize the tax benefit for deductible temporary
differences.
As of December 26, 2009, we have net operating loss carryforwards of $25.1 million relating to our
domestic unconsolidated affiliates. Of such losses, $16.2 million can be utilized against future federal
income through 2026, and $8.9 million can be utilized against future federal income through 2027.
Foreign net operating loss carryforwards totaled $205.1 million as of December 26, 2009. Of such losses,
$0.8 million can be utilized against future foreign income through 2012, $1.6 million can be utilized
against future foreign income through 2013, $2.6 million can be utilized against future foreign income
through 2014, $2.9 million can be utilized against future foreign income through 2015, $1.7 million can be
utilized against future foreign income through 2016 and $195.5 million has an indefinite life.