Washington Post 2015 Annual Report Download - page 111

The Company has $14.2 million of U.S. Federal income tax loss carryforwards obtained as a result of prior stock
acquisitions. U.S. Federal income tax loss carryforwards are expected to be fully utilized as follows:
(in millions)
2016 ............................................... $ 3.4
2017 ............................................... 2.5
2018 ............................................... 2.1
2019 ............................................... 2.0
2020 ............................................... 1.8
2021 and after ........................................ 2.4
Total ............................................... $14.2
The Company has established at December 31, 2015, $5.0 million in U.S. Federal deferred tax assets with respect
to these U.S. Federal income tax loss carryforwards.
For U.S. Federal income tax purposes, the Company has $1.4 million of foreign tax credits available to be
credited against future U.S. Federal income tax liabilities. These U.S. Federal foreign tax credits are expected to
be fully utilized in the future; if unutilized, $0.8 million of these foreign tax credits will expire in 2023, and $0.6
million will expire in 2025. The Company has established at December 31, 2015, $1.4 million of U.S. Federal
deferred tax assets with respect to these U.S. Federal foreign tax credit carryforwards.
The Company has $96.2 million of non-U.S. income tax loss carryforwards, as a result of operating losses and
carryforwards obtained through prior stock acquisitions that are available to offset future non-U.S. taxable
income and has recorded, with respect to these losses, $26.9 million in non-U.S. deferred income tax assets. The
Company has established $26.8 million in valuation allowances against the deferred tax assets recorded for the
portion of non-U.S. tax losses that may not be fully utilized to reduce future non-U.S. taxable income. The $96.2
million of non-U.S. income tax loss carryforwards consist of $88.4 million in losses that may be carried forward
indefinitely; $5.1 million of losses that, if unutilized, will expire in varying amounts through 2020; and $2.6
million of losses that, if unutilized, will start to expire after 2020.
The Company has $33.5 million of non-U.S. capital loss carryfowards, as a result of Kaplan Australia selling the
stock of Franklyn Scholar in 2015 that may be carried forward indefinitely and are available to offset future
Australian capital gains. The Company recorded a $10.1 million non-U.S. deferred income tax asset, and has
established a full valuation allowance against this non-U.S. deferred tax asset since the Company has determined
that it is more likely than not that the Australian capital loss carryforwards may not be fully utilized to reduce
Australian taxable income in the future.
Deferred tax valuation allowances and changes in deferred tax valuation allowances were as follows:
(in thousands)
Balance at
Beginning of
Period
Tax
Expense and
Revaluation Deductions
Balance at
End of
Period
Year ended
December 31, 2015 ...................... $65,521 $4,024 – $69,545
December 31, 2014 ....................... $72,767 $ 889 $(8,135) $65,521
December 31, 2013 ....................... $78,109 $4,595 $(9,937) $72,767
The Company has established $27.9 million in valuation allowances against deferred state tax assets recognized,
net of U.S. Federal tax. As stated above, approximately $19.5 million of the valuation allowances, net of U.S.
Federal income tax, relate to state income tax loss carryforwards. The Company has established valuation
allowances against deferred state income tax assets recognized, without considering potentially offsetting
deferred tax liabilities established with respect to prepaid pension cost and goodwill. Prepaid pension cost and
2015 FORM 10-K 96