Safeway 2009 Annual Report Download - page 77

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Significant components of the Company's net deferred tax liability at year end were as follows (in millions):
2009 2008
Deferred tax assets:
Pension liability $ 213.6 $ 203.6
Workers’ compensation and other claims 181.4 194.4
Employee benefits 147.1 136.9
Accrued claims and other liabilities 73.1 62.8
Charitable contribution carryforwards 34.7 49.4
Reserves not currently deductible 34.9 44.6
Operating loss carryforwards 2.6 2.9
Other assets 26.7 9.1
$ 714.1 $ 703.7
2009 2008
Deferred tax liabilities:
Property $ (626.3) $ (736.3)
Inventory (286.9) (282.5)
Investments in foreign operations (54.5) (41.7)
(967.7) (1,060.5)
Net deferred tax liability (253.6) (356.8)
Less current liability (103.1) (107.2)
Long-term portion $ (150.5) $ (249.6)
At January 2, 2010, the Company had federal and state charitable contribution carryforwards of $94.8 million which
expire from 2010 through 2012.
The Company had net operating loss carryforwards for federal income tax purposes of approximately $7.4 million which
expire at various dates from 2022 to 2026. The Company also had state tax credit carryforwards of $27.5 million which
have no expiration date.
At January 2, 2010, certain undistributed earnings of the Company's foreign operations totaling $1,739.5 million were
considered to be permanently reinvested. No deferred tax liability has been recognized for the remittance of such
earnings to the U.S., since it is the Company's intention to utilize those earnings in the foreign operations for an
indefinite period of time, or to repatriate such earnings only when tax-efficient to do so. Determination of the amount of
unrecognized deferred U.S. income tax liability is not practicable; however, unrecognized foreign tax credits may be
available to reduce some portion of the U.S. income tax liability.
On December 31, 2006, the first day of the 2007 fiscal year, the Company adopted new accounting guidance on the
accounting for uncertainty in income taxes. The Company recorded the cumulative effect of adopting this accounting
guidance by increasing stockholders’ equity by $139.7 million.
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