Issue link: http://catalog.e-digitaleditions.com/i/114936
Deferred income tax assets and liabilities were comprised of: December 31 2012 Deferred income tax assets: Inventories Other accrued expenses Depreciation and amortization State income taxes Share-based compensation Net operating loss carryforwards Other Total deferred income tax assets Less valuation allowances Total deferred income tax assets after valuation allowances Deferred income tax liabilities: Depreciation and amortization Other Total deferred income tax liabilities Net deferred income tax assets Reported as: Current assets���Deferred income taxes Noncurrent assets���Deferred income taxes Current liabilities���Accrued expenses and other liabilities Noncurrent liabilities���Other liabilities $ 623 $ 212 41 54 115 90 77 1,212 (13) 1,199 $ $ (444) (34) (478) 659 811 $ 63 ��� (182) 692 $ $ 652 185 46 39 115 72 54 1,163 (26) 1,137 (450) (57) (507) 692 $ $ Accrued interest and penalties reported as accrued expenses and other liabilities 2011 777 62 ��� (180) 659 49 $ 50 Net operating loss carryforwards totaling $284 at December 31, 2012 are available to reduce future taxable earnings of certain domestic and foreign subsidiaries. United States loss carryforwards of $146 expire between 2012 and 2021. International loss carryforwards of $138 expire beginning in 2013; however, some have no expiration. Of these carryforwards, $51 are subject to a full valuation allowance. No provision has been made for United States federal and state income taxes or international income taxes that may result from future remittances of the undistributed earnings of foreign subsidiaries that are determined to be indefinitely reinvested ($6,232 at December 31, 2012). Determination of the amount of any unrecognized deferred income tax liability on these is not practicable. The changes in the amounts recorded for uncertain income tax positions are as follows: December 31 2012 Balance at beginning of year Increases related to current year income tax positions Increases related to prior year income tax positions Decreases related to prior year income tax positions: Settlements and resolutions of income tax audits Statute of limitations expirations Balance at end of year Reported as: Current liabilities���Income taxes Noncurrent liabilities���Other liabilities $ $ $ $ 2011 249 17 3 $ (19) (23) 227 $ 11 216 227 $ $ 366 25 66 (155) (53) 249 21 228 249 Our income tax expense could have been reduced by $216 and $235 at December 31, 2012 and December 31, 2011, respectively, had these uncertain income tax positions been favorably resolved. It is reasonably possible that the amount of unrecognized tax benefits will significantly change due to one or more of the following events in the next twelve months: expiring statutes, audit activity, tax payments, competent authority proceedings related to transfer pricing or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate, including inventory transfer pricing and cost sharing, product royalty and foreign branch arrangements. We are not able to reasonably estimate the amount or the future periods in which changes in unrecognized tax benefits may be resolved. Interest expense and penalties incurred associated with uncertain tax positions are included in other income (expense). In the normal course of business, income tax authorities in various income tax jurisdictions both within the United States and internationally conduct routine audits of our income tax returns filed in prior years. These audits are generally designed to determine if individual income tax authorities are in agreement with our interpretations of complex income tax regulations regarding the allocation of income to the various income tax jurisdictions. With few exceptions, we are no longer subject to audits by income tax authorities for tax years prior to 2008. Income tax years subsequent to 2008 are open to examination in many of the income tax jurisdictions in which we operate. 37 Dollar amounts in millions except per share amounts or as otherwise specified