DELPHI 2011 Annual Report Download - page 131

Table of Contents
Net current and non-current deferred tax assets and liabilities are included in the consolidated balance sheets as follows:
December 31
2011 2010
(in millions)
Current assets $183 $136
Current liabilities (28) (4)
Long-term assets 204 183
Long-term liabilities (134) (178)
Total deferred tax asset $ 225 $ 137
The net deferred tax assets of $225 million as of December 31, 2011 are primarily comprised of deferred tax asset amounts in the U.K., China, and
Germany.
Net operating loss and tax credit carryforwards
As of December 31, 2011, Delphi has gross deferred tax assets of approximately $483 million for non-U.S. net operating loss ("NOL") carryforwards
with recorded valuation allowances of $460 million. These NOL's are available to offset future taxable income and realization is dependent on generating
sufficient taxable income prior to expiration of the loss carryforwards. The non-U.S. NOL's relate primarily to France, Spain, and Luxembourg. The NOL
carryforwards have expiration dates ranging from one year to an indefinite period.
Deferred tax assets include $10 million and $19 million of tax credit carryforwards with recorded valuation allowances of $3 million and $19 million at
December 31, 2011 and 2010, respectively. These tax credit carryforwards expire in 2012 through 2029.
Cumulative undistributed foreign earnings
Withholding taxes of $39 million on undistributed earnings are related to China, South Korea and Turkey that are not indefinitely reinvested. There are
no other material liabilities for U.K. income taxes on the undistributed earnings of foreign subsidiaries, as the Company has concluded that such earnings are
either indefinitely reinvested or should not give rise to additional income tax liabilities as a result of the distribution of such earnings.
Uncertain tax positions
Delphi recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount
recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Unrecognized tax
benefits are tax benefits claimed in Delphi's tax returns that do not meet these recognition and measurement standards.
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