Napa Auto Parts 2015 Annual Report Download - page 62

Genuine Parts Company and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)
December 31, 2015
December 31, 2015, the Company has not provided Federal income taxes on approximately $623,000,000 of
undistributed earnings of its foreign subsidiaries. The Company intends to reinvest these earnings to fund
expansion in these and other markets outside the U.S. Accordingly, the Company has not provided any provision
for income tax expense in excess of foreign jurisdiction income tax requirements relative to such undistributed
earnings in the accompanying consolidated financial statements. Due to the complexities associated with the
hypothetical calculation to determine residual taxes on the undistributed earnings, including the availability of
foreign tax credits, applicability of any additional local withholding tax and other indirect tax consequence that
may arise due to the distribution of these earnings, the Company has concluded it is not practicable to determine
the unrecognized deferred tax liability related to the undistributed earnings.
In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which
amends the existing guidance to require presentation of deferred tax assets and liabilities as noncurrent within a
classified statement of financial position. The Company adopted the guidance, on a prospective basis, at
December 31, 2015.
Significant components of the Company’s deferred tax assets and liabilities are as follows:
2015 2014
(In Thousands)
Deferred tax assets related to:
Expenses not yet deducted for tax purposes ......................... $318,368 $337,792
Pension liability not yet deducted for tax purposes ................... 347,263 341,904
665,631 679,696
Deferred tax liabilities related to:
Employee and retiree benefits .................................... 249,126 227,926
Inventory .................................................... 147,199 152,913
Other intangible assets ......................................... 111,305 105,482
Property, plant, and equipment ................................... 58,496 59,600
Other ....................................................... 31,664 30,641
597,790 576,562
Net deferred tax assets ............................................ 67,841 103,134
Current portion of deferred tax assets ................................ —(30,282)
Noncurrent net deferred tax assets .................................. $ 67,841 $ 72,852
The current portion of the deferred tax assets and liabilities are included in prepaid expenses and other cur-
rent assets and other current liabilities, respectively, in the consolidated balance sheet at December 31, 2014.
The components of income before income taxes are as follows:
2015 2014 2013
(In Thousands)
United States .................................... $1,004,919 $ 978,824 $ 850,866
Foreign ........................................ 118,762 138,915 193,438
Income before income taxes ........................ $1,123,681 $1,117,739 $1,044,304
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