Analyzing and Interpreting Tax Footnote (Financial Statement Effects Template)
Under Armour, Inc. reports total tax expense of $74,661 (in thousands) on its income statement for the year ended December 31, 2012, and paid cash of $57,739 (in thousands) for taxes. The tax footnote in the company's 10-K filing, reports the following deferred tax assets and liabilities information.
| Deferred tax assets |
|
|
| Allowance for doubtful accounts and other reserves |
$14,000 |
$9,576 |
| Stock-based competition |
13,157 |
11,238 |
| Foreign net operating loss carryforward |
12,416 |
11,078 |
| Deferred Rent |
6,007 |
4,611 |
| Inventory obsolescence reserves |
4,138 |
3,789 |
| Tax basis inventory adjustment |
3,581 |
4,317 |
| State tax credits, net of federal tax impact |
2,856 |
-- |
| Foreign tax credits |
2,210 |
1,784 |
| Deferred compensation |
1,170 |
1,448 |
| Other |
4,918 |
3,427 |
| Total deferred tax assets |
64,453 |
51,268 |
| Less: valuation allowance |
(3,966) |
(1,784) |
| Total net deferred tax assets |
60,487 |
49,484 |
|
Deferred tax liabilities
Intangible asset
|
(610) |
(341) |
| Prepaid expenses |
(4,153) |
(2,968) |
| Property, plant and equipment |
(10,116) |
(13,748) |
| Total deferred tax liabilities |
(14,879) |
(17,057) |
| Total deferred tax assets, net |
$45,608 |
$32,427 |
e) Use the financial statement effects template to record Under Armour's income tax expense for the current fiscal year 2012 along with the changes in both deferred tax assets and liabilities. Assume that the amount needed to balance the tax transaction represents the amount payable to tax authorities.