Kroger 2014 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2014 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

A-47
NO T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S , CO N T I N U E D
The tax effects of significant temporary differences that comprise tax balances were as follows:
2014 2013
Current deferred tax assets:
Net operating loss and credit carryforwards ..................... $ 5 $ 4
Compensation related costs .................................. 88 103
Other.................................................... 14 15
Subtotal .................................................. 107 122
Valuation allowance ........................................ (7) (9)
Total current deferred tax assets ............................ 100 113
Current deferred tax liabilities:
Insurance related costs ...................................... (99) (96)
Inventory related costs ...................................... (288) (265)
Total current deferred tax liabilities ......................... (387) (361)
Current deferred taxes......................................... $ (287) $ (248)
Long-term deferred tax assets:
Compensation related costs .................................. $ 721 $ 464
Lease accounting........................................... 129 115
Closed store reserves ....................................... 50 54
Insurance related costs ...................................... 77 66
Net operating loss and credit carryforwards ..................... 115 103
Other.................................................... 2 —
Subtotal .................................................. 1,094 802
Valuation allowance ........................................ (42) (38)
Total long-term deferred tax assets .......................... 1,052 764
Long-term deferred tax liabilities:
Depreciation and amortization ................................ (2,261) (2,128)
Other.................................................... —(17)
Total long-term deferred tax liabilities........................ (2,261) (2,145)
Long-term deferred taxes....................................... $(1,209) $(1,381)
At January 31, 2015, the Company had net operating loss carryforwards for state income tax purposes
of $1,286. These net operating loss carryforwards expire from 2015 through 2033. The utilization of certain
of the Company’s state net operating loss carryforwards may be limited in a given year. Further, based on the
analysis described below, the Company has recorded a valuation allowance against some of the deferred tax
assets resulting from its state net operating losses.
At January 31, 2015, the Company had state credit carryforwards of $48, most of which expire from
2015 through 2027. The utilization of certain of the Company’s credits may be limited in a given year. Further,
based on the analysis described below, the Company has recorded a valuation allowance against some of the
deferred tax assets resulting from its state credits.
At January 31, 2015, the Company had federal net operating loss carryforwards of $54. The net operating
loss carryforwards expire from 2030 through 2033. The utilization of certain of the Company’s federal net
operating loss carryforwards may be limited in a given year. Further, based on the analysis described below,
the Company has not recorded a valuation allowance against the deferred tax assets resulting from its federal
net operating losses.