Starbucks 2013 Annual Report Download - page 79

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71
Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in
millions):
Sep 29, 2013 Sep 30, 2012
Deferred tax assets:
Property, plant and equipment $ 64.9 $ 62.7
Accrued occupancy costs 69.0 72.0
Accrued compensation and related costs 77.6 66.9
Other accrued liabilities 22.0 15.7
Asset retirement obligation asset 21.0 20.1
Deferred revenue 49.9 43.7
Asset impairments 33.3 38.5
Tax credits 19.1 14.6
Stock based compensation 120.9 131.8
Net operating losses 99.0 99.2
Litigation charge 1,071.9 —
Other 62.7 80.9
Total $ 1,711.3 $ 646.1
Valuation allowance (160.5)(154.2)
Total deferred tax asset, net of valuation allowance $ 1,550.8 $ 491.9
Deferred tax liabilities:
Property, plant and equipment (182.9)(89.0)
Intangible assets and goodwill (81.6)(34.0)
Other (53.1)(44.8)
Total (317.6)(167.8)
Net deferred tax asset $ 1,233.2 $ 324.1
Reported as:
Current deferred income tax assets $ 277.3 $ 238.7
Long-term deferred income tax assets 967.0 97.3
Current deferred income tax liabilities (included in Accrued liabilities) (1.0)(1.3)
Long-term deferred income tax liabilities (included in Other long-term liabilities) (10.1)(10.6)
Net deferred tax asset $ 1,233.2 $ 324.1
The valuation allowance as of September 29, 2013 and September 30, 2012 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 29, 2013 and September 30, 2012, was an increase of $6.3 million and $16.8 million, respectively.
As of September 29, 2013, Starbucks has state tax credit carryforwards of $19.1 million with an expiration date of fiscal 2024.
Starbucks has foreign net operating loss carryforwards of $324 million, with the predominant amount having no expiration
date.
Uncertain Tax Positions
As of September 29, 2013, we had $88.8 million of gross unrecognized tax benefits of which $59.6 million, if recognized,
would affect our effective tax rate. We recognize interest and penalties related to income tax matters in income tax expense. As
of September 29, 2013 and September 30, 2012, we had accrued interest and penalties of $4.7 million and $5.5 million,
respectively, before the benefit of the federal tax deduction, recorded on our consolidated balance sheets.
2013 10-K
Starbucks Corporation Form