First Data 2008 Annual Report Download - page 149

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the
Company's assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be
realized. Deferred tax assets are included in both "Other current assets" and "Other long-term assets" in the Company's Consolidated Balance Sheets. Deferred
tax liabilities are included in "Deferred long-term tax liabilities" in the Company's Consolidated Balance Sheets. The following table outlines the principal
components of deferred tax items:
Successor
December 31, 2008 2007
Deferred tax assets related to:
Reserves and other accrued expenses $ 205.7 $ 51.4
Pension obligations 36.2 41.6
Employee related liabilities 42.3 61.6
Deferred revenues 2.9 —
Unrealized securities and hedging (gain)/loss 215.6 64.9
Net operating losses and tax credit carryforwards 303.4 182.8
U.S. foreign tax credits on undistributed earnings 140.4 87.0
Foreign exchange (gain)/loss 23.1 —
Total deferred tax assets 969.6 489.3
Valuation allowance (83.2) (92.4)
Realizable deferred tax assets 886.4 396.9
Deferred tax liabilities related to:
Property, equipment and intangibles (2,061.0) (2,507.8)
Investment in affiliates and other (192.2) (23.1)
Deferred revenues — (3.0)
U.S. tax on foreign undistributed earnings (137.1) (113.9)
Foreign exchange (gain)/loss — (11.8)
Total deferred tax liabilities (2,390.3) (2,659.6)
Net deferred tax liabilities $ (1,503.9) $ (2,262.7)
The Company's deferred tax assets and liabilities were included in the Consolidated Balance Sheets as follows:
Successor
December 31, 2008 2007
Current deferred tax assets $ 133.3 $ 110.6
Long-term deferred tax assets 11.0 8.3
Long-term deferred tax liabilities (1,648.2) (2,381.6)
Net deferred tax liabilities $ (1,503.9) $ (2,262.7)
Included in the changes from December 31, 2007 to December 31, 2008 in the deferred tax balances above are deferred tax assets and liabilities for
various acquisitions and for differences between the assigned fair market values and the tax bases of the assets and liabilities recognized in various purchase
business combinations.
As of December 31, 2008, the Company had recorded a valuation allowance of $83.2 million against federal, state and foreign net operating losses. The
decrease to the valuation allowance in 2008 was primarily due
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