Ingram Micro 2011 Annual Report Download - page 71

INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(In 000s, except per share data)
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:
Fiscal Year End
2011 2010
Deferred tax assets:
Net operating loss carryforwards ................................ $149,134 $ 202,452
Tax credit carryforwards ...................................... 76,319 62,571
Employee benefits, including stock-based compensation ............. 55,138 62,224
Reorganization and restructuring reserves ......................... 4,576 6,912
Inventory ................................................... 27,046 23,815
Depreciation and amortization .................................. 53,694 57,103
Allowance on trade accounts receivable .......................... 12,583 19,188
Reserves and accruals not currently deductible for income tax
purposes ................................................. 20,045 30,308
Other ...................................................... 19,713 15,661
Total deferred tax assets ..................................... 418,248 480,234
Valuation allowance .......................................... (186,021) (231,890)
Subtotal .................................................. 232,227 248,344
Deferred tax liabilities:
Depreciation and amortization .................................. (37,899) (24,420)
Other ...................................................... (16,456) (12,055)
Total deferred tax liabilities .................................. (54,355) (36,475)
Net deferred tax assets .......................................... $177,872 $ 211,869
Out of the amounts shown above, net current deferred tax assets of $61,484 and $71,639 are included in
other current assets at December 31, 2011 and January 1, 2011, respectively. Net non-current deferred tax assets
of $116,388 and $140,230 are included in other assets as of December 31, 2011 and January 1, 2011,
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 the nature of
the deferred tax assets and related statutory limits on utilization, recent operating results, 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 2010. As a result of this repatriation, we recognized an increase in our
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