Best Buy 2012 Annual Report Download - page 103

$ in millions, except per share amounts or as otherwise noted
103
Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows:
March 3,
2012 February 26, 2011
Other current assets $ 226 $ 261
Other assets 53 98
Other long-term liabilities (16)(68)
Net deferred tax assets $ 263 $ 291
At March 3, 2012, we had total net operating loss carryforwards from international operations of $223, of which $99 will expire
in various years through 2027 and the remaining amounts have no expiration. Additionally, we had acquired U.S. federal net
operating loss carryforwards of $29 which expire between 2021 and 2030, and U.S. federal foreign tax credits of $58 which
expire between 2015 and 2022.
At March 3, 2012, a valuation allowance of $204 had been established against certain international net operating loss
carryforwards and other international deferred tax assets. The $8 decrease from February 26, 2011, is primarily due to valuation
allowances on disposed operations, partially offset by valuation allowances arising in fiscal 2012.
We have not provided deferred taxes on unremitted earnings attributable to foreign operations that have been considered to be
reinvested indefinitely. These earnings relate to ongoing operations and were $2,232 at March 3, 2012. It is not practicable to
determine the income tax liability that would be payable if such earnings were not indefinitely reinvested.
The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2012 and 2011:
Balance at February 27, 2010 $ 393
Gross increases related to prior period tax positions 36
Gross decreases related to prior period tax positions (90)
Gross increases related to current period tax positions 40
Settlements with taxing authorities —
Lapse of statute of limitations (20)
Balance at February 26, 2011 $ 359
Gross increases related to prior period tax positions 69
Gross decreases related to prior period tax positions (35)
Gross increases related to current period tax positions 43
Settlements with taxing authorities (20)
Lapse of statute of limitations (29)
Balance at March 3, 2012 $ 387
Unrecognized tax benefits of $239 and $233 at March 3, 2012, and February 26, 2011, respectively, would favorably impact our
effective income tax rate if recognized.
We recognize interest and penalties (not included in the "unrecognized tax benefits" above), as well as interest received from
favorable tax settlements, as components of income tax expense. No interest expense was recognized in fiscal 2012. At
March 3, 2012, and February 26, 2011, we had accrued interest of $79 and $84, respectively. No penalties were recognized in
fiscal 2012 or accrued for at March 3, 2012, and February 26, 2011, respectively.
We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions.
With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax
authorities for years before fiscal 2004.
Because existing tax positions will continue to generate increased liabilities for us for unrecognized tax benefits over the next
12 months, and since we are routinely under audit by various taxing authorities, it is reasonably possible that the amount of
unrecognized tax benefits will change during the next 12 months. An estimate of the amount or range of such change cannot be
made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial
condition, results of operations or cash flows within the next 12 months.