Graco 2012 Annual Report Download - page 96

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90
The components of net deferred tax assets are as follows as of December 31, (in millions):
2012 2011
Deferred tax assets:
Accruals not currently deductible for tax purposes $ 140.2 $ 153.1
Postretirement liabilities 63.9 65.6
Inventory reserves 5.8 5.8
Pension liabilities 203.8 174.7
Self-insurance liability 3.4 3.9
Foreign tax credit carryforward 94.6 120.0
Foreign net operating losses 282.3 339.4
Other 140.0 147.6
Total gross deferred tax assets 934.0 1,010.1
Less valuation allowance (397.1)(441.6)
Net deferred tax assets after valuation allowance $ 536.9 $ 568.5
Deferred tax liabilities:
Accelerated depreciation $ (61.0) $ (67.4)
Amortizable intangibles (269.2)(253.3)
Other (5.3)(9.6)
Total gross deferred tax liabilities $ (335.5) $ (330.3)
Net deferred tax assets $ 201.4 $ 238.2
Current deferred income tax assets $ 135.8 $ 130.7
Current deferred income tax liabilities (3.7)(10.4)
Noncurrent deferred income tax assets 85.2 120.2
Noncurrent deferred income tax liabilities (15.9)(2.3)
$ 201.4 $ 238.2
The foreign tax credit carryforwards expire from 2016 to 2021, and a majority of the foreign net operating loss carryforwards do
not expire except for $182.8 million expiring from 2013 to 2030. The decrease in the deferred tax asset valuation allowance relates
predominantly to the expiration of attributes in North America where the Company maintained full valuation allowances and
utilization of attributes in various foreign jurisdictions.
At December 31, 2012, the estimated amount of total unremitted non-U.S. subsidiary earnings is $694.3 million. Those earnings
are considered to be indefinitely reinvested and, accordingly, no U.S. federal or state deferred income taxes have been provided
thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. income
taxes and withholding taxes payable in various non-U.S. jurisdictions, which could potentially be offset by foreign tax credits.
Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities
associated with its hypothetical calculation.
FOOTNOTE 17
Other (Income) Expense, Net
Other (income) expense, net consists of the following for the years ended December 31, (in millions):
2012 2011 2010
Investment activities, including equity in earnings $ 1.4 $ (1.3) $ (0.4)
Currency transaction (gain) loss (2.3) 14.7 (6.9)
Other (0.1) 0.3 —
$(1.0) $ 13.7 $ (7.3)