Coca Cola 2014 Annual Report Download - page 120

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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, 2014 2013
Deferred tax assets:
Property, plant and equipment $ 96 $ 102
Trademarks and other intangible assets 68 63
Equity method investments (including foreign currency translation adjustment) 462 243
Derivative financial instruments 134 50
Other liabilities 1,082 1,102
Benefit plans 1,673 1,237
Net operating/capital loss carryforwards 729 790
Other 196 225
Gross deferred tax assets $ 4,440 $ 3,812
Valuation allowances (649) (586)
Total deferred tax assets1,2 $ 3,791 $ 3,226
Deferred tax liabilities:
Property, plant and equipment $
(2,342)
$ (2,417)
Trademarks and other intangible assets (4,020
)
(4,192)
Equity method investments (including foreign currency translation adjustment) (1,038
)
(1,070)
Derivative financial instruments (457) (147)
Other liabilities (110) (69)
Benefit plans (487) (473)
Other (944) (810)
Total deferred tax liabilities3$
(9,398)
$ (9,178)
Net deferred tax liabilities $
(5,607)
$ (5,952)
1 Noncurrent deferred tax assets of $319 million and $328 million were included in the line item other assets in our consolidated balance sheets as of
December 31, 2014 and 2013, respectively.
2 Current deferred tax assets of $160 million and $211 million were included in the line item prepaid expenses and other assets in our consolidated balance
sheets as of December 31, 2014 and 2013, respectively.
3 Current deferred tax liabilities of $450 million and $339 million were included in the line item accounts payable and accrued expenses in our consolidated
balance sheets as of December 31, 2014 and 2013, respectively.
As of December 31, 2014 and 2013, we had $643 million and $198 million, respectively, of net deferred tax liabilities located in
countries outside the United States.
As of December 31, 2014, we had $6,408 million of loss carryforwards available to reduce future taxable income. Loss carryforwards of
$497 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, 2014 2013 2012
Balance at beginning of year $ 586 $ 487 $ 859
Additions 104 169 126
Decrease due to transfer to assets held for sale —— (146)
Deductions (41) (70) (352)
Balance at end of year $ 649 $ 586 $ 487
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