Tech Data 2014 Annual Report Download - page 58

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 2014 was $41.0 million primarily resulting from the $45.3 million reversal of
deferred tax valuation allowances primarily related to certain European jurisdictions as discussed previously. 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, and the net change in the deferred tax valuation
allowances in fiscal 2012 was a decrease of $27.6 million .
The valuation allowances at both January 31, 2014 and 2013 primarily relate to foreign net operating loss carryforwards. The Company’
s foreign
net operating loss carryforwards totaled $617.9 million and $606.8 million at January 31, 2014 and 2013, respectively. The majority of the net
operating losses have an indefinite carryforward period with the remaining portion expiring in fiscal years 2015 through 2033. 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
Year ended January 31,
2014
2013 2012
(In thousands)
United States
$
124,134
$
108,700
$
131,662
Foreign
80,175
120,766
140,649
$
204,309
$
229,466
$
272,311
January 31,
2014
2013
(In thousands)
Deferred tax liabilities:
Depreciation and amortization
$
70,800
$
81,679
Capitalized marketing program costs
4,722
3,456
Goodwill
6,108
4,004
Deferred costs currently deductible
6,094
4,870
Other, net
7,491
5,074
Total deferred tax liabilities
95,215
99,083
Deferred tax assets:
Accrued liabilities
50,665
50,039
Loss carryforwards
125,914
124,536
Amortizable goodwill
11,915
15,253
Depreciation and amortization
7,699
6,706
Disallowed interest expense
38,481
28,069
Other, net
10,149
12,908
244,823
237,511
Less: valuation allowances
(101,340
)
(142,375
)
Total deferred tax assets
143,483
95,136
Net deferred tax asset (liability)
$
48,268
$
(3,947
)