Safeway 2012 Annual Report Download - page 76

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
64
Significant components of the Company’s net deferred tax liability at year end are as follows (in millions):
2012 2011
Deferred tax assets:
Pension liability $293.3$ 295.3
Workers’ compensation and other claims 189.7 189.2
Employee benefits 202.8 205.5
Accrued claims and other liabilities 80.0 74.9
Reserves not currently deductible 37.4 36.7
Foreign tax credit carryforwards 37.9 35.3
State tax credit carryforwards 27.7 20.7
Operating loss carryforwards 1.9 2.0
Other assets 10.8 14.2
881.5 873.8
Valuation Allowance (27.1) (29.1)
$854.4$ 844.7
2012 2011
Deferred tax liabilities:
Property $ (662.4) $ (663.8)
Inventory (314.5) (312.9)
Investments in foreign operations (19.4) (9.5)
(996.3) (986.2)
Net deferred tax liability $ (141.9) $ (141.5)
Deferred tax assets and liabilities are reported in the balance sheet as follows (in millions):
2012 2011
Current deferred tax assets (1) $1.1$—
Noncurrent deferred tax assets (2) 81.2 78.2
Current deferred tax liability (45.7) (77.8)
Noncurrent deferred tax liability (178.5) (141.9)
Net deferred tax asset (liability) $ (141.9) $ (141.5)
(1) Included in Prepaid Expenses and Other Current Assets.
(2) Included in Other Assets.
At December 29, 2012, the Company had net operating loss carryforwards for federal income tax purposes
of approximately $5.3 million which expire at various dates from 2023 to 2025. The Company also had state
tax credit carryforwards of $42.6 million which have no expiration date.
At December 29, 2012, the Company had foreign tax credit carryforwards of $37.9 million which expire in
2021. A valuation allowance has been recorded against $27.1 million of these carryforwards. The valuation
allowance is recorded when it becomes more likely than not that a portion of the deferred tax asset will not
be realized.