Nautilus 2008 Annual Report Download - page 61

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Table of Contents
The tax effect of deferred tax assets and liabilities arising from temporary differences and carry-forwards are as follows:
The $35.3 million increase in the deferred tax asset valuation allowance, in 2008, was primarily due to uncertainty regarding the Company’s
ability to utilize net operating loss carry-forwards generated in 2008 and other net deferred tax assets.
The Company’s net deferred tax assets (liabilities) as presented in its consolidated balance sheets are as follows:
57
December 31,
(In thousands)
2008
2007
Deferred tax assets:
Accrued liabilities
$
8,409
$
11,982
Allowance for doubtful accounts
1,424
1,011
Inventory valuation
1,717
1,509
Uniform capitalization
354
414
Share
-
based compensation expense
1,373
1,269
Net operating loss carry forward
15,178
787
Basis difference on subsidiary held for sale
5,163
4,885
Special and non
-
recurring charges
—
7,299
Basis difference on long lived assets
1,971
—
Undistributed earnings of subsidiaries
1,872
—
Other
3,102
1,326
40,563
30,482
Less: Valuation Allowance
(40,536
)
(5,249
)
Total deferred tax assets
27
25,233
Deferred income tax liabilities:
Prepaid advertising
(501
)
(963
)
Other prepaids
(787
)
(781
)
Basis difference on long
-
lived assets
—
(
8,803
)
Undistributed earnings of foreign subsidiaries
—
(
694
)
Total deferred tax liabilities
(1,288
)
(11,241
)
Net deferred tax asset (liability)
$
(1,261
)
$
13,992
December 31,
(In thousands)
2008
2007
Current deferred tax assets
$
266
$
18,615
Current deferred tax liability
(919
)
—
Non
-
current deferred tax assets
429
500
Non
-
current deferred tax liabilities
(1,037
)
(5,123
)
Net deferred tax asset (liability)
$
(1,261
)
$
13,992