Take a look at the Notes to the Financial Statements of the latest Annual Report for Procter & Gamble. What do these deferred tax assets and liablities mean and why might Procter & Gamble have these?
As of June 30 2017 2016 DEFERRED TAX ASSETS
Pension and postretirement benefits $ 1,775 $ 2,226
Loss and other carryforwards 1,516 1,077
Stock-based compensation 732 845
Unrealized loss on financial and foreign exchange transactions 259 122
Fixed assets 212 216
Accrued marketing and promotion 210 240
Advance payments 121 515
Inventory 75 61
Accrued interest and taxes 30 55
Other 709 764
Valuation allowances (505) (467)
TOTAL $ 5,134 $ 5,654
DEFERRED TAX LIABILITIES
Goodwill and other intangible assets $ 9,403 $ 9,461
Fixed assets 1,495 1,533
Unrealized gain on financial and foreign exchange transactions 314 387
Other 26 105
TOTAL $ 11,238 $ 11,486