Coca Cola 2013 Annual Report Download - page 119

The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consist of the
following (in millions):
December 31, 2013 2012
Deferred tax assets:
Property, plant and equipment $ 102 $89
Trademarks and other intangible assets 63 77
Equity method investments (including foreign currency translation adjustment) 243 209
Derivative financial instruments 50 116
Other liabilities 1,102 1,178
Benefit plans 1,237 1,808
Net operating/capital loss carryforwards 790 782
Other 225 320
Gross deferred tax assets $ 3,812 $ 4,579
Valuation allowances (586) (487)
Total deferred tax assets1,2 $ 3,226 $ 4,092
Deferred tax liabilities:
Property, plant and equipment $ (2,417) $ (2,204)
Trademarks and other intangible assets (4,192) (4,133)
Equity method investments (including foreign currency translation adjustment) (1,070) (712)
Derivative financial instruments (147) (140)
Other liabilities (69) (144)
Benefit plans (473) (495)
Other (810) (929)
Total deferred tax liabilities3$ (9,178) $ (8,757)
Net deferred tax liabilities $ (5,952) $ (4,665)
1Noncurrent deferred tax assets of $328 million and $403 million were included in the line item other assets in our consolidated balance sheets as of
December 31, 2013 and 2012, respectively.
2Current deferred tax assets of $211 million and $244 million were included in the line item prepaid expenses and other assets in our consolidated
balance sheets as of December 31, 2013 and 2012, respectively.
3Current deferred tax liabilities of $339 million and $331 million were included in the line item accounts payable and accrued expenses in our
consolidated balance sheets as of December 31, 2013 and 2012, respectively.
As of December 31, 2013 and 2012, we had $198 million of net deferred tax liabilities and $70 million of net deferred tax assets
located in countries outside the United States.
As of December 31, 2013, we had $6,914 million of loss carryforwards available to reduce future taxable income. Loss
carryforwards of $488 million must be utilized within the next five years, and the remainder can be utilized over a period greater
than five years.
An analysis of our deferred tax asset valuation allowances is as follows (in millions):
Year Ended December 31, 2013 2012 2011
Balance at beginning of year $ 487 $ 859 $ 950
Additions 169 126 138
Decrease due to transfer to assets held for sale —(146) —
Deductions (70) (352) (229)
Balance at end of year $ 586 $ 487 $ 859
The Company’s deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of
recorded tax benefits on tax loss carryforwards from operations in various jurisdictions. These valuation allowances were primarily
related to deferred tax assets generated from net operating losses. Current evidence does not suggest we will realize sufficient
taxable income of the appropriate character within the carryforward period to allow us to realize these deferred tax benefits. If we
were to identify and implement tax planning strategies to recover these deferred tax assets or generate sufficient income of the
appropriate character in these jurisdictions in the future, it could lead to the reversal of these valuation allowances and a
reduction of income tax expense. The Company believes that it will generate sufficient future taxable income to realize the tax
benefits related to the remaining net deferred tax assets in our consolidated balance sheets.
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