Ingram Micro 2010 Annual Report Download - page 67

Deferred income taxes reflect the tax effect of temporary differences between the carrying amount of assets
and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant
components of our net deferred tax assets and liabilities are as follows:
2010 2009
Fiscal Year End
Deferred tax assets:
Net operating loss carryforwards .............................. $202,452 $ 190,907
Tax credit carryforwards . ................................... 62,571 18,295
Employee benefits, including shared-based compensation ............ 62,224 53,737
Reorganization and restructuring reserves........................ 6,912 7,802
Inventory ............................................... 23,815 17,202
Depreciation and amortization ................................ 57,103 58,382
Allowance on trade accounts receivable ......................... 19,188 21,143
Reserves and accruals not currently deductible for income tax
purposes .............................................. 30,308 20,069
Other .................................................. 15,661 23,049
Total deferred tax assets................................... 480,234 410,586
Valuation allowance ....................................... (231,890) (184,206)
Subtotal .............................................. 248,344 226,380
Deferred tax liabilities:
Depreciation and amortization ................................ (24,420) (10,717)
Other .................................................. (12,055) (11,953)
Total deferred tax liabilities ................................ (36,475) (22,670)
Net deferred tax assets ....................................... $211,869 $ 203,710
Out of the amounts shown above, net current deferred tax assets of $71,639 and $102,244 are included in other
current assets at January 1, 2011 and January 2, 2010, respectively. Net non-current deferred tax assets of $140,230
and $101,466 are included in other assets as of January 1, 2011 and January 2, 2010, respectively.
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In
making such determination, we consider all available positive and negative evidence, including future reversals of
existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial
operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the
future in excess of or less than the net recorded amount, we would make an adjustment to the valuation allowance
which would reduce or increase the provision for income taxes.
On August 10, 2010, Congress enacted the Education Jobs & Medicaid Assistance Act (“EJMA”). EJMA
includes significant international tax revenue raisers which are generally effective January 1, 2011. These
provisions generally attempt to limit a taxpayer’s ability to fully claim tax credits for previously paid foreign
taxes in determining one’s U.S. income tax liability. In advance of the effective date of this legislation, we
repatriated a total of $9,400 of local statutory earnings from one of our Canadian subsidiaries to the United States
during the third and fourth quarters of the current year. As a result of this repatriation, we recognized an increase in
our deferred tax assets related to foreign tax credit carryforwards of $44,628, along with an increase of $39,362 in
the valuation allowance on these foreign tax credit carryforwards, with the net amount reflecting the amount more
likely than not to be realized based on our current ability to generate the character of income required to utilize these
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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)