E-Z-GO 2009 Annual Report Download - page 91

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Notes to the Consolidated Financial Statements
82
During 2009, 2008 and 2007, we recognized net tax-related interest totaling approximately $12 million, $31 million and $20 million, respectively,
in the Consolidated Statements of Operations. At January 2, 2010 and January 3, 2009, we had a total of $114 million and $102 million,
respectively, of net accrued interest included in our Consolidated Balance Sheets.
The tax effects of temporary differences that give rise to significant portions of our net deferred tax assets and liabilities were as follows:
January 2, January 3,
(In millions) 2010 2009
Deferred tax assets:
Obligation for pension and postretirement benefits $ 767 $ 826
Accrued expenses* 219 217
Deferred compensation 197 194
Allowance for credit losses 146 90
Valuation allowance on finance receivables held for sale 71 135
Loss carryforwards 60 63
Foreign currency translation adjustment 41 31
Other, net 225 156
Total deferred tax assets 1,726 1,712
Valuation allowance for deferred tax assets (210) (175)
$ 1,516 $ 1,537
Deferred tax liabilities:
Leasing transactions $ (468) $ (601)
Amortization of goodwill and other intangibles (147) (157)
Property, plant and equipment, principally depreciation (115) (99)
Inventory (7) (31)
Change in status of non-U.S. subsidiary — (22)
Total deferred tax liabilities (737) (910)
Net deferred tax asset $ 779 $ 627
* Accrued expenses includes warranty and product maintenance reserves, self-insured liabilities, interest and restructuring charges.
The valuation allowance against our deferred tax assets is due to the uncertainty of realizing the related benefits. Deferred tax liabilities decreased
in 2009 primarily due to the sale of certain leverage leases in the Finance segment.
The following table presents the breakdown between current and long-term net deferred tax assets:
January 2, January 3,
(In millions) 2010 2009
Current $ 315 $ 266
Non-current 600 698
915 964
Finance group’s net deferred tax liability (136) (337)
Net deferred tax asset $ 779 $ 627
We have net operating loss and credit carryforwards at the end of each year as follows:
January 2, January 3,
(In millions) 2010 2009
Non-U.S. net operating loss carryforwards with no expiration $ 157 $ 154
Non-U.S. net operating loss carryforwards expiring through 2024 18 34
State credit carryforwards beginning to expire in 2018 11 14