Pizza Hut 2010 Annual Report Download - page 205

108
Other. This item primarily includes the impact of permanent differences related to current year earnings and U.S. tax
credits.
In 2009, this item was positively impacted by a one-time pre-tax gain of approximately $68 million, with no related
income tax expense, recognized on our acquisition of additional interest in, and consolidation of, the entity that operates
KFC in Shanghai, China. This was partially offset by a pre-tax U.S. goodwill impairment charge of approximately $26
million, with no related income tax benefit.
The details of 2010 and 2009 deferred tax assets (liabilities) are set forth below:
2010 2009
N
et operating loss and tax credit carryforwards
$
220 $ 222
Employee benefits 158 148
Share-based compensation 102 106
Self-insured casualty claims 50 59
Lease related liabilities 166 157
Various liabilities 130 99
Deferred income and other 82 59
Gross deferred tax assets 908 850
Deferred tax asset valuation allowances (191
)
(187)
Net deferred tax assets
$
717 $ 663
Intangible assets, including goodwill
$
(243
)
$ (240)
Property, plant and equipment (104
)
(118)
Other (14
)
(46)
Gross deferred tax liabilities
$
(361
)
$ (404)
N
et deferred tax assets (liabilities)
$
356 $ 259
Reported in Consolidated Balance Sheets as:
Deferred income taxes – current
$
61 $ 81
Deferred income taxes – long-term 366 251
Accounts payable and other current liabilities (20) (7
)
Other liabilities and deferred credits (51
)
(66)
$
356 $ 259
We have investments in foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. We
have not provided deferred tax on the portion of the excess that we believe is essentially permanent in duration. This
amount may become taxable upon an actual or deemed repatriation of assets from the subsidiaries or a sale or liquidation
of the subsidiaries. We estimate that our total temporary difference upon which we have not provided deferred tax is
approximately $1.3 billion at December 25, 2010. A determination of the deferred tax liability on this amount is not
practicable.
Form 10-K