Starbucks 2015 Annual Report Download - page 87

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Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in
millions):
Sep 27, 2015 Sep 28, 2014
Deferred tax assets:
Property, plant and equipment $ 121.4 $ 78.5
Accrued occupancy costs 98.4 58.8
Accrued compensation and related costs 81.7 75.3
Other accrued liabilities 49.0 27.6
Asset retirement obligation asset 29.0 18.6
Stored value card liability 99.1 63.4
Asset impairments 26.2 49.5
Tax credits 20.8 20.3
Stock-based compensation 135.5 131.5
Net operating losses 93.4 104.4
Litigation charge 931.0 1,002.0
Other 104.5 77.0
Total $ 1,790.0 $ 1,706.9
Valuation allowance (143.7)(166.8)
Total deferred tax asset, net of valuation allowance $ 1,646.3 $ 1,540.1
Deferred tax liabilities:
Property, plant and equipment (217.5)(148.2)
Intangible assets and goodwill (177.3)(92.9)
Other (114.1)(89.4)
Total (508.9)(330.5)
Net deferred tax asset $ 1,137.4 $ 1,209.6
Reported as:
Current deferred income tax assets $ 381.7 $ 317.4
Long-term deferred income tax assets 828.9 903.3
Current deferred income tax liabilities (included in Accrued liabilities) (5.4)(4.2)
Long-term deferred income tax liabilities (included in Other long-term liabilities) (67.8)(6.9)
Net deferred tax asset $ 1,137.4 $ 1,209.6
The valuation allowance as of September 27, 2015 and September 28, 2014 is primarily related to net operating losses and
other deferred tax assets of consolidated foreign subsidiaries. The net change in the total valuation allowance was a decrease of
$23.1 million and an increase of $6.3 million for fiscal 2015 and 2014, respectively.
As of September 27, 2015, we had state tax credit carryforwards of $32.0 million with an expiration date of fiscal 2024 and
foreign net operating loss carryforwards of $309.5 million, the majority of which has no expiration date.
Uncertain Tax Positions
As of September 27, 2015, we had $150.4 million of gross unrecognized tax benefits of which $101.7 million, if recognized,
would affect our effective tax rate. We recognized expense of $0.7 million, expense of $5.9 million, and a benefit of $0.8
million of interest and penalties in income tax expense, prior to the benefit of the federal tax deduction, for fiscal 2015, 2014
and 2013, respectively. As of September 27, 2015 and September 28, 2014, we had accrued interest and penalties of $11.3
million and $10.6 million, respectively, before the benefit of the federal tax deduction, included within other long-term
liabilities on our consolidated balance sheets.
Starbucks Corporation 2015 Form 10-K 83