Tech Data 2013 Annual Report Download - page 72

Table of Contents
The components of pretax income are as follows:
The significant components of the Company’s deferred tax liabilities and assets are as follows:
The net change in the deferred tax valuation allowances in fiscal 2013 was a decrease of $16.0 million primarily resulting from the $25.1 million
reversal of a deferred tax valuation allowance related to a specific European jurisdiction as discussed previously. The net change in the deferred tax
valuation allowances in fiscal 2012 was a decrease of $27.6 million primarily resulting from the utilization of net operating losses and the net
change in the deferred tax valuation allowances in fiscal 2011 was an increase of $0.1 million . The valuation allowances at both January 31, 2013
and 2012 primarily relate to foreign net operating loss carryforwards. The Company’s foreign net operating loss carryforwards totaled $606.8
million and $640.5 million at January 31, 2013 and 2012, respectively. The majority of the net operating losses have an indefinite carryforward
period with the remaining portion expiring in fiscal years 2014 through 2031. The Company considers all positive and negative evidence available
in determining the potential of realizing deferred tax assets, including the scheduled reversal of temporary differences, recent cumulative losses,
recent and projected future taxable income, and prudent and feasible tax planning strategies. In making this determination, the Company places
greater emphasis on recent cumulative losses and recent taxable income due to the inherent lack of subjectivity associated with these factors. To the
extent that the Company generates consistent taxable income within those operations with valuation allowances, the Company may reduce the
valuation allowances, thereby reducing the income tax expense and increasing net income in the period the determination was made.
Year ended January 31,
2013 2012 2011
(As restated) (As restated)
(In thousands)
United States
$
108,700
$
131,662
$
133,771
Foreign
120,766
140,649
162,061
$
229,466
$
272,311
$
295,832
January 31,
2013 2012
(As restated)
(In thousands)
Deferred tax liabilities:
Depreciation and amortization
$
81,679
$
43,160
Capitalized marketing program costs
3,456
4,008
Goodwill
4,004
2,711
Deferred costs currently deductible
4,870
14,760
Other, net
5,074
9,179
Total deferred tax liabilities
99,083
73,818
Deferred tax assets:
Accrued liabilities
50,039
43,099
Loss carryforwards
124,536
128,738
Amortizable goodwill
15,253
16,109
Depreciation and amortization
6,706
4,036
Disallowed interest expense
28,069
16,773
Other, net
12,908
18,709
237,511
227,464
Less: valuation allowances
(142,375
)
(158,348
)
Total deferred tax assets
95,136
69,116
Net deferred tax liability
$
(3,947
)
$
(4,702
)