Macy's 2010 Annual Report Download - page 75

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and
deferred tax liabilities are as follows:
January 29,
2011
January 30,
2010
(millions)
Deferred tax assets:
Post employment and postretirement benefits .................... $ 473 $ 667
Accrued liabilities accounted for on a cash basis for tax purposes .... 195 316
Long-term debt ............................................ 117 132
Unrecognized state tax benefits and accrued interest ............... 91 91
State operating loss carryforwards ............................. 61 55
Other .................................................... 144 114
Valuation allowance ........................................ (35) (33)
Total deferred tax assets ................................. 1,046 1,342
Deferred tax liabilities:
Excess of book basis over tax basis of property and equipment ...... (1,793) (1,919)
Merchandise inventories ..................................... (483) (456)
Intangible assets ........................................... (162) (129)
Other .................................................... (217) (184)
Total deferred tax liabilities .............................. (2,655) (2,688)
Net deferred tax liability ................................. $(1,609) $(1,346)
The valuation allowance at January 29, 2011 and January 30, 2010 relates to net deferred tax assets for state
net operating loss carryforwards. The net change in the valuation allowance amounted to an increase of $2
million for 2010 and no change for 2009.
As of January 29, 2011, the Company had no federal net operating loss carryforwards and state net
operating loss carryforwards of approximately $1,301 million, which will expire between 2011 and 2031.
F-27