Albertsons 2013 Annual Report Download - page 77

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Deferred income taxes reflect the net tax effects of temporary differences between the bases of assets and
liabilities for financial reporting and income tax purposes. The Company’s deferred tax assets and liabilities
consisted of the following:
2013 2012
Deferred tax assets:
Compensation and benefits $ 367 $ 377
Self-insurance 20 24
Property, plant and equipment and capitalized lease assets 110 98
Loss on sale of discontinued operations 1,341 —
Net operating loss carryforwards 22 22
Other 104 155
Gross deferred tax assets 1,964 676
Valuation allowance (1,358) (12)
Total deferred tax assets 606 664
Deferred tax liabilities:
Property, plant and equipment and capitalized lease assets (204) (285)
Inventories (28) (41)
Intangible assets (21) (19)
Other (19) (3)
Total deferred tax liabilities (272) (348)
Net deferred tax asset $ 334 $ 316
Net deferred tax assets of $334 as of February 23, 2013 reflect long-term deferred tax assets of $345 recorded in
Deferred tax assets in the Consolidated Balance Sheets and current deferred tax liabilities of $11 recorded in
Other current liabilities. Net deferred tax assets of $316 as of February 25, 2012 reflect long-term deferred tax
assets of $268 recorded in Deferred tax assets in the Consolidated Balance Sheets and current deferred tax assets
of $48 recorded in Other current assets.
The Company has valuation allowances to reduce deferred tax assets to the amount that is more-likely-than-not
to be realized. The Company currently has state net operating loss (“NOL”) carryforwards of $448 for tax
purposes. The NOL carryforwards expire beginning in 2014 and continuing through 2032 and have a $16
valuation allowance. The sale of NAI results in an allocation of tax expense between continuing and discontinued
operations. Included in discontinued operations is the recognition of the additional tax basis in the shares of NAI
offset by a valuation allowance on the capital loss that will result from the sale of shares. The Company has
recorded a valuation allowance against the projected capital loss because there is no current evidence that the
capital loss will be used prior to its expiration.
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