Lexmark 2015 Annual Report Download - page 106

102
Deferred income tax assets and (liabilities)
Significant components of deferred income tax assets and (liabilities) at December 31 were as follows:
2015
2014
Deferred tax assets:
Tax loss carryforwards
$
34.2
$
31.4
Credit carryforwards
19.4
6.5
Inventories
11.2
11.5
Restructuring
17.0
3.0
Pension and postretirement benefits
65.8
63.6
Warranty
4.0
5.0
Equity compensation
26.7
20.4
Other compensation
8.2
12.7
Foreign exchange
0.6
–
Deferred revenue
23.3
28.9
Other
31.6
23.3
Deferred tax liabilities:
Property, plant and equipment
(25.7)
(34.0)
Intangible assets
(157.5)
(77.7)
Foreign exchange
–
(0.2)
58.8
94.4
Valuation allowances *
(18.7)
(8.5)
Net deferred tax assets
$
40.1
$
85.9
* Approximately $9.6 million of the increase over prior year is primarily due to the acquisition of Kofax. Refer to Note 4 of the Notes to
Consolidated Financial Statements for more information.
The breakdown between current and long-term deferred tax assets and deferred tax liabilities as of December 31 is as follows:
2015
2014
Current Deferred Tax Assets and Liabilities:
Current Deferred Tax Asset
$
–
$
49.6
Current Deferred Tax Liability
–
(24.6)
Net Current Deferred Tax Asset
–
25.0
Long-Term Deferred Tax Assets and Liabilities:
Long-Term Deferred Tax Asset
161.9
96.3
Long-Term Deferred Tax Liability
(121.8)
(35.4)
Net Long-Term Deferred Tax Asset
40.1
60.9
Total Current and Long-Term Net Deferred Tax Asset Balance at December 31
$
40.1
$
85.9
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 elected during 2015 to early adopt new guidance requiring that all deferred tax assets and liabilities
be classified as noncurrent on the balance sheet. The guidance was adopted on a prospective basis and, therefore, balance sheet
presentation of deferred taxes is not consistent with the prior year. Refer to Note 2 of the Notes to Consolidated Financial Statements
for additional information.
The Company has federal, state and foreign net operating loss carryforwards of $22.3 million, $22.7 million and $134.2 million,
respectively. The federal net operating loss carryforwards will expire in the years 2025 to 2035. The state net operating loss
carryforwards expire in the years 2016 to 2034. The foreign net operating loss carryforwards include $86.6 million with no expiration
date. The remainder of the foreign net operating loss carryforwards will expire in the years 2016 to 2024.
The Company has federal, state and foreign tax credit carryforwards of $8.2 million, $17.3 million and $1.3 million, respectively. The
federal tax credit carryforward will expire in the years 2025 to 2035. The state credit carryforward is $8.2 million, net of federal