Home Depot 2015 Annual Report Download - page 52

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Table of Contents
50
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax
liabilities as of January 31, 2016 and February 1, 2015 were as follows (amounts in millions):
January 31,
2016 February 1,
2015
Assets:
Deferred compensation $ 269 $ 272
Accrued self-insurance liabilities 433 440
State income taxes 140 121
Non-deductible reserves 315 283
Net operating losses 58 45
Impairment of investment —30
Other 267 279
Total Deferred Tax Assets 1,482 1,470
Valuation Allowance (3)(6)
Total Deferred Tax Assets after Valuation Allowance 1,479 1,464
Liabilities:
Inventory (129)(61)
Property and equipment (1,165)(1,156)
Goodwill and other intangibles (368)(161)
Other (116)(234)
Total Deferred Tax Liabilities (1,778)(1,612)
Net Deferred Tax Liabilities $(299)$(148)
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 31,
2016 February 1,
2015
Other Current Assets $ 509 $ 444
Other Assets 48 51
Other Accrued Expenses (2)(1)
Deferred Income Taxes (854)(642)
Net Deferred Tax Liabilities $(299)$(148)
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 except for certain net operating losses discussed below, no
valuation reserves have been provided.
At January 31, 2016, the Company had federal, state and foreign net operating loss carryforwards available to reduce future
taxable income, expiring at various dates beginning in 2016 to 2035. Management has concluded that it is more likely than
not that the tax benefits related to the federal and state net operating losses will be realized. However, it is unlikely that the
Company will be able to utilize certain foreign net operating losses. Therefore, a valuation allowance has been provided to
reduce the deferred tax asset related to foreign net operating losses to an amount that is more likely than not to be realized.
Total valuation allowances related to foreign net operating losses at January 31, 2016 and February 1, 2015 were $3 million
and $6 million, respectively.