Home Depot 2006 Annual Report Download - page 60

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The tax effects of temporary differences that give rise to significant portions of the deferred tax assets
and deferred tax liabilities as of January 28, 2007 and January 29, 2006, were as follows (amounts
in millions):
January 28, January 29,
2007 2006
Current:
Deferred Tax Assets:
Accrued self-insurance liabilities $94 $ 143
Other accrued liabilities 603 278
Other —28
Current Deferred Tax Assets 697 449
Deferred Tax Liabilities:
Accelerated inventory deduction (137) (271)
Other (29) (17)
Current Deferred Tax Liabilities (166) (288)
Current Deferred Tax Assets, net 531 161
Noncurrent:
Deferred Tax Assets:
Accrued self-insurance liabilities 325 354
Other accrued liabilities —35
Net operating losses 66 63
Noncurrent Deferred Tax Assets 391 452
Deferred Tax Liabilities:
Property and equipment (1,365) (1,160)
Goodwill and other intangibles (361) (209)
Other (74) —
Noncurrent Deferred Tax Liabilities (1,800) (1,369)
Noncurrent Deferred Tax Liabilities, net (1,409) (917)
Net Deferred Tax Liabilities $ (878) $ (756)
Current deferred tax assets and current deferred tax liabilities are netted by tax jurisdiction and
noncurrent deferred tax assets and noncurrent deferred tax liabilities are netted by tax jurisdiction, and
are included in the accompanying Consolidated Balance Sheets as follows (amounts in millions):
January 28, January 29,
2007 2006
Other Current Assets $ 561 $ 221
Other Assets 729
Other Accrued Expenses (30) (60)
Deferred Income Taxes (1,416) (946)
Net Deferred Tax Liabilities $ (878) $(756)
The Company believes that the realization of the deferred tax assets is more likely than not, based
upon the expectation that it will generate the necessary taxable income in future periods and,
accordingly, no valuation reserves have been provided. As a result of acquisitions that were accounted
for under the purchase method of accounting, deferred tax liabilities of $118 million were recorded in
fiscal 2006 representing the difference between the book value and the tax basis of acquired assets.
50