Kimberly-Clark 2010 Annual Report Download - page 78

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Deferred income tax assets (liabilities) are composed of the following:
December 31
2010 2009
(Millions of dollars)
Net current deferred income tax asset attributable to:
Accrued expenses ....................................................... $ 103 $ 102
Pension, postretirement and other employee benefits ............................ 82 86
Loss carryforwards ...................................................... 72 —
Installment sales ........................................................ (72) —
Inventory .............................................................. (21) (45)
Other ................................................................. 46 8
Valuation allowances ..................................................... (23) (15)
Net current deferred income tax asset ............................................ $ 187 $ 136
Net current deferred income tax liability included in accrued expenses .................. $ (28) $ (31)
Net noncurrent deferred income tax asset attributable to:
Tax credits and loss carryforwards .......................................... $ 447 $ 405
Pension and other postretirement benefits ..................................... 153 228
Property, plant and equipment, net .......................................... (97) (86)
Other ................................................................. 42 37
Valuation allowances ..................................................... (233) (211)
Net noncurrent deferred income tax asset included in other assets ...................... $ 312 $ 373
Net noncurrent deferred income tax liability attributable to:
Property, plant and equipment, net .......................................... $(1,081) $(976)
Pension, postretirement and other employee benefits ............................ 550 546
Tax credits and loss carryforwards .......................................... 447 462
Installment sales ........................................................ (112) (180)
Provision for unremitted earnings ........................................... (88) (70)
Intangible assets ......................................................... (43) (63)
Other ................................................................. (13) (78)
Valuation allowances ..................................................... (29) (18)
Net noncurrent deferred income tax liability ....................................... $ (369) $(377)
Valuation allowances increased $43 million in 2010 and decreased $75 million in 2009. Valuation
allowances at the end of 2010 primarily relate to tax credits and income tax loss carryforwards of $1.2 billion. If
these items are not utilized against taxable income, $210 million of the loss carryforwards will expire from 2011
through 2030. The remaining $981 million has no expiration date.
Realization of income tax loss carryforwards is dependent on generating sufficient taxable income prior to
expiration of these carryforwards. Although realization is not assured, we believe it is more likely than not that
all of the deferred tax assets, net of applicable valuation allowances, will be realized. The amount of the deferred
tax assets considered realizable could be reduced or increased due to changes in the tax environment or if
estimates of future taxable income change during the carryforward period.
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