Lexmark 2010 Annual Report Download - page 112

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Deferred income tax assets and (liabilities)
Significant components of deferred income tax assets and (liabilities) at December 31 were as follows:
2010 2009
Deferred tax assets:
Tax loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.4 $ 3.7
Credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.7 5.5
Inventories.................................................... 21.8 20.4
Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.6 23.8
Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.3 55.5
Warranty ..................................................... 12.3 6.9
Postretirement benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.4 19.9
Equity compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.1 30.2
Other compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 12.9
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 0.2
Other........................................................ 26.6 34.8
Deferred tax liabilities:
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.9) (32.8)
Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55.5) —
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.6) —
128.3 181.0
Valuation allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.2)
Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $128.3 $180.8
The breakdown between current and long-term deferred tax assets and deferred tax liabilities as of
December 31 is as follows:
2010 2009
Current Deferred Tax Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 88.0 $ 99.6
Current Deferred Tax Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29.0) (26.3)
Long-Term Deferred Tax Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.6 146.8
Long-Term Deferred Tax Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13.3) (39.3)
Balance at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $128.3 $180.8
The current deferred tax assets and current deferred tax liabilities are included in Prepaid expenses and
other current assets and Accrued liabilities, respectively, on the Consolidated Statements of Financial
Position. The long-term deferred tax assets and long-term deferred tax liabilities are included in Other
assets and Other liabilities, respectively, on the Consolidated Statements of Financial Position.
The Company has non-U.S. tax loss carryforwards of $3.6 million, none of which is subject to a valuation
allowance. The loss carryforwards are in several jurisdictions. The carryforward periods range from 7 to
10 years. The Company believes that, for any tax loss carryforward where a valuation allowance has not
been provided, the associated asset will be realized because there will be sufficient income in the future to
absorb the loss.
Deferred income taxes have not been provided for the undistributed earnings of foreign subsidiaries
because such earnings are indefinitely reinvested. Undistributed earnings of non-U.S. subsidiaries
included in the consolidated retained earnings were approximately $1,478.5 million as of
December 31, 2010. It is not practicable to estimate the amount of additional tax that may be payable
on the foreign earnings. The Company does not plan to initiate any action that would precipitate the
payment of income taxes.
106