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8-K
SUNEDISON, INC. filed this Form 8-K on 09/09/2013
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Deferred Taxes

The tax effects of the major items recorded as deferred tax assets and liabilities are:

 

     As of December 31,  
     2012      2011  
In millions              

Deferred tax assets:

     

Inventories

   $ 6.7        $ 8.5    

Restructuring liabilities

     26.1          97.7    

Expense accruals

     16.5          17.3    

Property, plant and equipment

     92.2          93.9    

Pension, medical and other employee benefits

     23.8          23.4    

Net operating loss carryforwards

     63.4          14.6    

Foreign tax credits

     25.6          23.7    

Other

     23.2          17.1    
  

 

 

    

 

 

 

Total deferred tax assets

     277.5          296.2    

Valuation allowance

             (240.9)                 (273.9)   
  

 

 

    

 

 

 

Net deferred tax assets

     36.6          22.3    
  

 

 

    

 

 

 

Deferred tax liabilities:

     (4.0)         (6.9)   
  

 

 

    

 

 

 

Net deferred tax assets

   $ 32.6        $ 15.4    
  

 

 

    

 

 

 

Our deferred tax assets and liabilities, netted by taxing location, are in the following captions in the combined balance sheet:

 

     As of December 31,  
     2012      2011  
In millions              

Current deferred tax assets, net (recorded in deferred tax asset and accrued liabilities)

   $ 12.4        $ 2.1    

Non-current deferred tax assets, net (recorded in other assets and other liabilities)

     20.2          13.3    
  

 

 

    

 

 

 

Total

   $         32.6        $         15.4    
  

 

 

    

 

 

 

Our net deferred tax assets totaled $32.6 million as of December 31, 2012 compared to $15.4 million as of December 31, 2011. In 2012, the increase of $17.2 million in net deferred tax assets is primarily attributable to additional deferred tax assets associated with net operating losses offset by decreases in restructuring liabilities. Deferred tax assets generated in 2011 were offset by recognizing an increase of $197.3 million in the valuation allowance primarily associated with changes in restructuring liabilities and changes to valuation allowance in certain foreign jurisdictions. Deferred tax assets utilized in 2012 were offset by recognizing a decrease of $33.0 million in the valuation allowance primarily associated with changes in restructuring liabilities and changes to valuation allowance in certain foreign jurisdictions. As of December 31, 2012, we have valuation allowances of $240.9 million. We believe that it is more likely than not, with our projections of future taxable income in certain foreign jurisdictions, that we will generate sufficient taxable income to realize the benefits of the net deferred tax assets of $32.6 million. As of December 31, 2012, we had deferred tax assets associated with net operating loss carryforwards of $11.2 million in certain foreign jurisdictions; if unused, these will expire in 2022.

Our total deferred tax assets, net of valuation allowance, as of June 30, 2013 was $28.0 million. We believe that it is more likely than not, with our projections of future taxable income in certain foreign jurisdictions, that we will generate sufficient taxable income to realize the benefits of the net deferred tax assets which have not been offset by a valuation allowance at June 30, 2013.

 

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