Kimberly-Clark 2008 Annual Report Download - page 94

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Deferred income tax assets (liabilities) are composed of the following:
December 31
2008 2007
(Millions of dollars)
Net current deferred income tax asset attributable to:
Accrued expenses ......................................................... $ 126 $ 105
Pension, postretirement and other employee benefits ............................. 77 78
Inventory ............................................................... (52) (21)
Other ................................................................... 13 63
Valuation allowances ...................................................... (33) (8)
Net current deferred income tax asset ............................................. $ 131 $ 217
Net current deferred income tax liability attributable to:
Other payables ........................................................... $1 $ (9)
Other ................................................................... (15) (12)
Net current deferred income tax liability ........................................... $ (14) $ (21)
Net noncurrent deferred income tax asset attributable to:
Income tax loss carryforwards ............................................... $ 244 $ 289
Foreign tax credits and loss carryforwards ..................................... 383 —
State tax credits .......................................................... 97 99
Pension and other postretirement benefits ...................................... 835 98
Accumulated depreciation .................................................. (656) (24)
Installment sales .......................................................... (189) —
Other ................................................................... (3) 38
Valuation allowances ...................................................... (286) (227)
Net noncurrent deferred income tax asset included in other assets ....................... $ 425 $ 273
Net noncurrent deferred income tax liability attributable to:
Accumulated depreciation .................................................. $(255) $(935)
Pension, postretirement and other employee benefits ............................. 73 535
Foreign tax credits and loss carryforwards ..................................... —325
Installment sales .......................................................... —(186)
Other ................................................................... (11) (25)
Valuation allowances ...................................................... —(84)
Net noncurrent deferred income tax liability ........................................ $(193) $(370)
Classification of the components of noncurrent deferred tax assets and liabilities is determined by the
Corporation’s net tax position by taxing jurisdiction. At December 31, 2008, the Corporation’s net noncurrent
deferred tax position had changed to a net asset of $232 million from a net liability of $97 million at
December 31, 2007. The change was primarily due to the recognition of noncurrent deferred tax assets related to
the increase in the U.S. noncurrent pension liability of approximately $1.1 billion, which was primarily caused by
investment losses on the U.S. defined benefit pension plan assets in 2008.
Valuation allowances were unchanged in 2008 and decreased by $52 million in 2007. Valuation allowances
at the end of 2008 primarily relate to excess foreign tax credits in the U.S. and income tax loss carryforwards of
$811 million, which potentially are not useable primarily in jurisdictions outside the U.S. If not utilized against
taxable income, $169 million of the loss carryforwards will expire from 2009 through 2028. The remaining
$642 million has no expiration date.
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