MoneyGram 2009 Annual Report Download - page 122

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
determination is made. The Company's deferred tax assets and liabilities at December 31 are composed of the following:
(Amounts in thousands) 2009 2008
Deferred tax assets:
Postretirement benefits and other employee benefits $ 49,145 $ 52,133
Tax loss carryovers 319,005 308,870
Tax credit carryovers 46,577 45,394
Basis difference in revalued investments 114,708 126,341
Bad debt and other reserves 8,990 5,977
Other 22,703 7,126
Valuation allowance (496,149) (494,310)
Total deferred tax asset 64,979 51,531
Deferred tax liabilities:
Depreciation and amortization (61,520) (63,507)
Unrealized gain on derivative financial instruments — (478)
Gross deferred tax liability (61,520) (63,985)
Net deferred tax asset (liability) $ 3,459 $ (12,454)
Net deferred tax asset positions are reflected in the "Other assets" line in the Consolidated Balance Sheets, while net deferred tax liability
positions are included in the "Accounts payable and other liabilities" line in the Consolidated Balance Sheets. Our deferred tax assets
increased in 2009 from estimated timing adjustments, finalizing the 2008 tax return and the affect of tax audit adjustments, primarily
related to positions taken on the Company's investment losses. The valuation allowance in 2009 increased from these additional deferred
tax assets, substantially offset by the release of $17.6 million of valuation allowance, as described above. For 2008 and 2009, we believe
a full valuation allowance is appropriate for the deferred tax assets related to the basis difference on investments and our tax attributes.
Essentially all of our deferred tax assets relate to the U.S. jurisdiction, where we are in a net deferred tax liability position, and we do not
believe we have sufficient positive evidence to overcome the negative evidence. Changes in facts and circumstances in the future may
cause us to record additional tax benefits as further deferred tax valuation allowances are released and carry-forwards are utilized. We
continue to evaluate additional available tax positions related to the net securities losses in prior years.
The amount and expiration dates of tax loss carry-forwards (not tax effected) and credit carry-forwards as of December 31, 2009 are as
follows:
Expiration
(Amounts in thousands) Date Amount
United States federal and state loss carry-forwards 2012 - 2028 $ 865,561
United States federal tax credit carry-forwards 2012 - 2028 29,037
United States federal tax credit carry-forwards Indefinite 17,540
The Company, or one of its subsidiaries, files income tax returns in the United States federal jurisdiction and various states and foreign
jurisdictions. With a few exceptions, the Company is no longer subject to foreign or United States federal, state and local income tax
examinations for years prior to 2005. The Company is subject to foreign, United States federal and certain state income tax examinations
for 2005 through 2008, with a United States federal income tax examination for 2005 through 2007 currently in process.
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