Proctor and Gamble 2015 Annual Report Download - page 70

The Procter & Gamble Company 68
Amounts in millions of dollars except per share amounts or as otherwise specified.
Deferred income tax assets and liabilities were comprised of
the following:
Years ended une 0 2015 2014
DEFERRED TAX ASSETS
Pension and postretirement benefits  1,9 $ 2,045
Loss and other carryforwards 1,014 1,211
Stock-based compensation 949 1,060
Advance payments 21 
Accrued marketing and promotion 2 258
Unrealized loss on financial and
foreign exchange transactions 1 352
Fixed assets 19 115
Inventory 49 35
Accrued interest and taxes 4 66
Goodwill and other intangible
assets 25 49
Other 14 809
aluation allowances 24 (384)
TOTAL  5,2 $ 5,616
DEFERRED TAX LIABILITIES
Goodwill and other intangible
assets  10,1 $ 11,428
Fixed assets 1,590 1,665
Unrealized gain on financial and
foreign exchange transactions 5 43
Other 149 101
TOTAL  12,22 $ 13,237
Net operating loss carryforwards were $3.1 billion and $3.6
billion at June 30, 2015 and 2014, respectively. If unused, $1.2
billion will expire between 2015 and 2034. The remainder,
totaling $1.9 billion at June 30, 2015, may be carried forward
indefinitely.
 
COMMITMENTS AND CONTINGENCIES
Guarantees
In conjunction with certain transactions, primarily divestitures,
we may provide routine indemnifications (e.g.,
indemnification for representations and warranties and
retention of previously existing environmental, tax and
employee liabilities) for which terms range in duration and, in
some circumstances, are not explicitly defined. The maximum
obligation under some indemnifications is also not explicitly
stated and, as a result, the overall amount of these obligations
cannot be reasonably estimated. Other than obligations
recorded as liabilities at the time of divestiture, we have not
made significant payments for these indemnifications. e
believe that if we were to incur a loss on any of these matters,
the loss would not have a material effect on our financial
position, results of operations or cash flows.
In certain situations, we guarantee loans for suppliers and
customers. The total amount of guarantees issued under such
arrangements is not material.
Off-Balance Sheet Arrangements
e do not have off-balance sheet financing arrangements,
including variable interest entities, that have a material impact
on our financial statements.
Purchase Commitments and Oerating Leases
e have purchase commitments for materials, supplies,
services and property, plant and equipment as part of the normal
course of business. Commitments made under take-or-pay
obligations are as follows:
Years ending
une 0 201 201 201 2019 2020
There
after
Purchase
obligations $ 586 $ 280 $ 169 $ 132 $ 110 $ 230
Such amounts represent future purchases in line with expected
usage to obtain favorable pricing. This includes purchase
commitments related to service contracts for information
technology, human resources management and facilities
management activities that have been outsourced to third-party
suppliers. Due to the proprietary nature of many of our
materials and processes, certain supply contracts contain
penalty provisions for early termination. e do not expect to
incur penalty payments under these provisions that would
materially affect our financial position, results of operations
or cash flows.
e also lease certain property and equipment for varying
periods. Future minimum rental commitments under non-
cancelable operating leases, net of guaranteed sublease
income, are as follows:
Years ending
une 0 201 201 201 2019 2020
There
after
Operating
leases $ 249 $ 225 $ 210 $ 194 $ 177 $ 562
Litigation
e are subject to various legal proceedings and claims arising
out of our business which cover a wide range of matters such
as antitrust, trade and other governmental regulations, product
liability, patent and trademark, advertising, contracts,
environmental, labor and employment and income taxes.
As previously disclosed, the Company has had a number of
antitrust matters in Europe. These matters involve a number
of other consumer products companies andor retail customers.
Several regulatory authorities in Europe have issued separate
decisions pursuant to their investigations alleging that the
Company, along with several other companies, engaged in
violations of competition laws in those countries. Many of
these matters have concluded and the fines have been paid. For
ongoing matters, the Company has accrued liabilities for
competition law violations from these European cases totaling
$38 as of June 30, 2015. hile the ultimate resolution of