Cardinal Health 2009 Annual Report Download - page 112

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previously unrecognized capital loss carryforward, and foreign tax credits of $14.1 million were recorded related
to the taxable dividends resulting in a net tax benefit of $4.1 million.
Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases
of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the
deferred income tax assets and liabilities as of June 30, 2009 and 2008 are as follows (in millions):
June 30,
(in millions) 2009 2008
Deferred income tax assets:
Receivable basis difference ........................... $ 41.6 $ 40.8
Accrued liabilities ................................... 174.2 214.2
Equity compensation ................................ 118.2 115.8
Loss and tax credit carryforwards ...................... 202.4 209.2
Deferred tax assets under FIN48 ....................... 161.9 153.6
Other ............................................. 75.3 100.8
Total deferred income tax assets ................... 773.6 834.4
Valuation allowance for deferred income tax assets ............ (151.9) (178.0)
Net deferred income tax assets ..................... 621.7 656.4
Deferred income tax liabilities:
Inventory basis differences ............................ (824.2) (724.9)
Property-related .................................... (73.6) (88.2)
Goodwill and other intangibles ........................ (368.2) (391.1)
Revenues on lease contracts ........................... (497.1) (508.1)
Other ............................................. (3.3) (11.6)
Total deferred income tax liabilities ................. (1,766.4) (1,723.9)
Net deferred income tax liabilities .............. $(1,144.7) $(1,067.5)
Deferred tax assets and liabilities in the preceding table, after netting by taxing jurisdiction, are in the
following captions in the consolidated balance sheet at June 30, 2009 and 2008 (in millions):
June 30,
2009 2008
Current deferred tax asset (1) .............................. $ 22.5 $ 8.2
Non current deferred tax asset (2) .......................... 24.2 11.2
Current deferred tax liability (3) ............................ (642.0) (506.6)
Non current deferred tax liability (4) ........................ (541.0) (568.5)
Discontinued Operations net deferred tax liability (5) ........... (8.4) (11.8)
Net deferred tax liability .............................. $(1,144.7) $(1,067.5)
(1) Included in “Prepaid Expenses and Other.”
(2) Included in “Other Assets.”
(3) Included in “Other Accrued Liabilities.”
(4) Included in “Deferred Income Taxes and Other Liabilities.”
(5) Included in “Liabilities from Business Held for Sale and Discontinued Operations.”
At June 30, 2009, the Company had gross federal, state and international loss and credit carryforwards of
$78.9 million, $771.2 million and $187.4 million, respectively, the tax effect of which is an aggregate deferred
tax asset of $193.3 million. Substantially all of these carryforwards are available for at least three years or have
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