Starbucks 2012 Annual Report Download - page 88

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82
Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and
liabilities (in millions):
We will establish a valuation allowance if either it is more likely than not that the deferred tax asset will expire
before we are able to realize the benefit, or the future deductibility is uncertain. Periodically, the valuation
allowance is reviewed and adjusted based on our assessments of the likelihood of realizing the benefit of our
deferred tax assets. The valuation allowance as of September 30, 2012 and October 2, 2011 is primarily related to
net operating losses and other deferred tax assets of consolidated foreign subsidiaries. The net change in the total
valuation allowance for the years ended September 30, 2012 and October 2, 2011, was an increase of $16.8
million and $49.3 million, respectively. During fiscal 2011, we recognized approximately $32 million of
previously unrecognized deferred tax assets in certain foreign jurisdictions, with a corresponding increase to the
valuation allowance due to the uncertainty of their realization.
Sep 30, 2012 Oct 2, 2011
Deferred tax assets:
Property, plant and equipment $ 62.7 $ 46.4
Accrued occupancy costs 72.0 55.9
Accrued compensation and related costs 66.9 69.6
Other accrued liabilities 15.7 27.8
Asset retirement obligation asset 20.1 19.0
Deferred revenue 43.7 47.8
Asset impairments 38.5 60.0
Tax credits 14.6 23.0
Stock based compensation 131.8 128.8
Net operating losses 99.2 85.5
Other 80.9 58.6
Total $ 646.1 $ 622.4
Valuation allowance (154.2) (137.4)
Total deferred tax asset, net of valuation allowance $ 491.9 $ 485.0
Deferred tax liabilities:
Property, plant and equipment (89.0) (66.4)
Intangible assets and goodwill (34.0) (25.2)
Other (44.8) (18.1)
Total (167.8) (109.7)
Net deferred tax asset $ 324.1 $ 375.3
Reported as:
Current deferred income tax assets $ 238.7 $ 230.4
Long-term deferred income tax assets (included in Other assets) 97.3 156.3
Current deferred income tax liabilities (included in Accrued liabilities) (1.3) (4.9)
Long-term deferred income tax liabilities (included in Other long-term
liabilities) (10.6) (6.5)
Net deferred tax asset $ 324.1 $ 375.3