Kroger 2013 Annual Report Download - page 121

A-48
NO T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S , CO N T I N U E D
The tax effects of significant temporary differences that comprise tax balances were as follows:
2013 2012
Current deferred tax assets:
Net operating loss and credit carryforwards ..................... $ 4 $ 4
Compensation related costs .................................. 103 79
Other.................................................... 15 —
Subtotal .................................................. 122 83
Valuation allowance ........................................ (9) (4)
Total current deferred tax assets ............................ 113 79
Current deferred tax liabilities:
Insurance related costs ...................................... (96) (116)
Inventory related costs ...................................... (265) (234)
Other.................................................... —(17)
Total current deferred tax liabilities ......................... (361) (367)
Current deferred taxes......................................... $ (248) $ (288)
Long-term deferred tax assets:
Compensation related costs .................................. $ 464 $ 564
Lease accounting........................................... 115 87
Closed store reserves ....................................... 54 56
Insurance related costs ...................................... 66 77
Net operating loss and credit carryforwards ..................... 103 82
Other.................................................... —2
Subtotal .................................................. 802 868
Valuation allowance ........................................ (38) (28)
Total long-term deferred tax assets .......................... 764 840
Long-term deferred tax liabilities:
Depreciation .............................................. (2,128) (1,636)
Other.................................................... (17) —
Total long-term deferred tax liabilities........................ (2,145) (1,636)
Long-term deferred taxes....................................... $(1,381) $ (796)
The long-term deferred tax liability for depreciation increased over the prior year due to the inclusion
of Harris Teeter and an adjustment to the estimated tax depreciation used in the 2012 provision that resulted
in a correction in the balance sheet between other current liabilities and long-term deferred income taxes in
2013. The amount of the correction was not material to any periods presented.
At February 1, 2014, the Company had net operating loss carryforwards for state income tax purposes of
$1,280. These net operating loss carryforwards expire from 2014 through 2032. The utilization of certain of
the Company’s net operating loss carryforwards may be limited in a given year. Further, based on the analysis
described below, the Company has recorded a valuation allowance against some of the deferred tax assets
resulting from its net operating losses.
At February 1, 2014, the Company had state credit carryforwards of $34, most of which expire from
2014 through 2027. The utilization of certain of the Company’s credits may be limited in a given year. Further,
based on the analysis described below, the Company has recorded a valuation allowance against some of the
deferred tax assets resulting from its state credits.