E-Z-GO 2014 Annual Report Download - page 76

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The tax effects of temporary differences that give rise to significant portions of our net deferred tax assets and liabilities are as
follows:
(In millions)
January 3,
2015
December 28,
2013
Deferred tax assets
Obligation for pension and postretirement benefits
$ 541
$ 358
Accrued expenses*
287
182
Deferred compensation
190
161
Loss carryforwards
137
84
Inventory
79
18
Allowance for credit losses
36
29
Deferred income
22
14
Other, net
91
130
Total deferred tax assets
1,383
976
Valuation allowance for deferred tax assets
(167)
(166)
$ 1,216
$ 810
Deferred tax liabilities
Property, plant and equipment, principally depreciation
$ (167)
$ (174)
Leasing transactions
(165)
(184)
Amortization of goodwill and other intangibles
(118)
(109)
Prepaid pension and postretirement benefits
(14)
(143)
Total deferred tax liabilities
(464)
(610)
Net deferred tax asset
$ 752
$ 200
* Accrued expenses includes warranty and product maintenance reserves, self-insured liabilities and interest.
We believe that our earnings during the periods when the temporary differences become deductible will be sufficient to realize the
related future income tax benefits. For those jurisdictions where the expiration date of tax carryforwards or the projected operating
results indicate that realization is not more than likely, a valuation allowance is provided.
The following table presents the breakdown between current and long-term net deferred tax assets:
(In millions)
January 3,
2015
December 28,
2013
Manufacturing group:
Other current assets
$ 259
$ 206
Other assets
630
270
Other liabilities
(19)
(147)
Finance group - Other liabilities
(118)
(129)
Net deferred tax asset
$ 752
$ 200
Our net operating loss and credit carryforwards at January 3, 2015 are as follows:
(In millions)
Non-U.S. net operating loss with no expiration
$ 84
Non-U.S. net operating loss expiring through 2034
56
U.S. federal net operating losses expiring through 2034, related to 2014 acquisitions
290
U.S. foreign tax credits expiring through 2022, related to 2014 acquisitions
8
State net operating loss and tax credits, net of tax benefits, expiring through 2034
109
The undistributed earnings of our non-U.S. subsidiaries approximated $995 million at January 3, 2015. We consider the
undistributed earnings to be indefinitely reinvested; therefore, we have not provided a deferred tax liability for any residual U.S.
tax that may be due upon repatriation of these earnings. Because of the effect of U.S. foreign tax credits, it is not practicable to
estimate the amount of tax that might be payable on these earnings in the event they no longer are indefinitely reinvested.
70 Textron Inc. Annual Report • 2014