PACCAR 2009 Annual Report Download - page 61

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U.S. income taxes are not provided on the undistributed earnings of the Company’s foreign subsidiaries that are
considered to be indefinitely reinvested. At December 31, 2009, the amount of undistributed earnings which are
considered to be indefinitely reinvested is $3,117.8.
At December 31, 2009, the Company had net operating loss carryforwards of $365.7, of which $209.0 were in
foreign subsidiaries and $156.7 were in the U.S. The related deferred tax asset was $70.9. The carryforward periods
range from five years to indefinite, subject to certain limitations under applicable laws. At December 31, 2009, the
Company has U.S. tax credit carryforwards of $68.4, most of which expire in 2018 and 2019. The future tax benefits
of net operating loss and credit carryforwards are evaluated on a regular basis, including a review of historical and
projected operating results.
The tax effects of temporary differences representing deferred tax assets and liabilities are as follows:
At December 31, 2009 2008
Assets:
Accrued expenses $ 123.2 $ 156.4
Net operating loss carryforwards 70.9 54.0
Tax credit carryforwards 68.4
Allowance for losses on receivables 54.4 58.0
Postretirement benefit plans 15.6 124.3
Other 98.7 152.1
431.2 544.8
Valuation allowance (4.0) (5.4)
427.2 539.4
Liabilities:
Financial Services leasing depreciation (524.1) (524.1)
Depreciation and amortization (167.9) (116.4)
Other (16.9) (55.1)
(708.9) (695.6)
Net deferred tax liability $ (281.7) $ (156.2)
The balance sheet classification of the Company’s deferred tax assets and liabilities are as follows:
At December 31, 2009 2008
Truck and Other:
Other current assets $ 76.9 $ 83.5
Other noncurrent assets 135.8 195.3
Accounts payable, accrued expenses and other (.1) (13.3)
Other liabilities (35.0) (13.1)
Financial Services:
Other assets 68.0 56.4
Deferred taxes and other liabilities (527.3) (465.0)
Net deferred tax liability $ (281.7) $ (156.2)
Cash paid for income taxes was $67.3, $452.0 and $412.9 in 2009, 2008 and 2007.
58
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009, 2008 and 2007 (currencies in millions)