Office Depot 2012 Annual Report Download - page 73

OFFICE DEPOT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The components of deferred income tax assets and liabilities consisted of the following:
For financial reporting purposes, a jurisdictional netting process is applied to deferred tax assets and deferred tax liabilities, resulting
in the balance sheet classification shown below.
As of December 29, 2012, the Company had approximately $229 million of U.S. Federal, $833 million of foreign, and $1.2 billion o
f
state net operating loss carryforwards. The U.S. Federal carryforward will expire between 2030 and 2032. Of the foreign
carryforwards, $623 million can be carried forward indefinitely, $29 million will expire in 2013, and the remaining balance will
expire between 2014 and 2032. Of the state carryforwards, $7 million will expire in 2013, and the remaining balance will expire
between 2014 and 2032. The Company has not triggered any provision, similar to the U.S. IRS Federal Section 382, limiting the use
of the Company’s net operating loss carryforwards and deferred tax assets as of December 29, 2012. If the Company were to become
subject to such provisions in future periods, the Company’s income tax expense may be negatively impacted.
70
(In thousands)
December 29,
2012
December 31,
2011
U.S. and forei
g
n net o
p
eratin
g
loss carr
y
forwards $366,927 $379,610
Deferred rent credit
95,220 101,679
Vacation
p
a
y
and other accrued com
p
ensation 61,356 78,797
Accruals for facilit
y
closin
g
s 21,027 32,800
Inventor
y
14,406 13,562
Self-insurance accruals
19,374 20,640
Deferred revenue 6,613 5,893
State credit carr
y
forwards, net of Federal benefit 8,278 13,643
Allowance for bad debts 2,727 2,911
Accrued rebates
121 7,978
Basis difference in fixed assets 39,762
—
Other items, net
64,230 46,713
Gross deferred tax assets 700,041 704,226
Valuation allowance
(583,172) (621,719)
Deferred tax assets 116,869 82,507
Internal software 2,799 4,216
Basis difference in fixed assets
—
32,055
Deferred Sub
p
art F income 10,791 10,791
Undistributed forei
g
n earnin
g
s 72,345
—
Deferred tax liabilities 85,935 47,062
Net deferred tax assets $30,934 $35,445
(In thousands)
December 29,
2012
December 31,
2011
Deferred tax assets:
Included in Pre
p
aid and other current assets $ 36,725 $ 29,592
Deferred income taxes
–
noncurrent 33,421 47,791
Deferred tax liabilities:
Included in Accrued ex
p
enses and other current liabilities 4,711 12,558
Included in Deferred income taxes and other lon
g
-term liabilities 34,501 29,380
Net deferred tax asset $30,934 $35,445