F. Recent US GAAP accounting pronouncements
SFAS No. 109
Applied to
Dutch GAAP
Balances
- December 30, 2001
SFAS No. 109
adjustments
Deferred taxes
under SFAS
No. 109
Deferred tax assets:
Capitalized lease commitments
103
103
Benefit plans
112
112
Restructuring provisions
32
(15)
17
Provisions not yet deductible
94
6
100
Sale and leaseback of property
70
70
Derivative instruments
78
78
Other
3
3
Operating loss carry forwards
228
228
Alternative minimum tax carry forwards
20
20
General business tax credit carry forwards
1
1
Gross deferred tax assets
590
142
732
Valuation allowances on carry forwards
(98)
(98)
Valuation allowances on other deferred tax assets
(2)
(3)
(5)
Net deferred tax assets
490
139
629
Deferred tax liabilities:
Tangible fixed assets
(381)
(381)
Identifiable intangibles
(328)
(328)
Goodwill
(17)
(17)
Inventory
(37)
(37)
Other
(127)
(1)
(128)
Total deferred tax liabilities
(545)
(346)
(891)
Net deferred tax liabilities
(55)
(207)
(262)
Dutch GAAP does not permit deferred tax assets and liabilities to be offset if they are dissimilar in nature or if the timing
in which the particular asset or liability will be settled is different. US GAAP requires these balances to be offset if they
originate within the same tax jurisdiction for a particular tax-paying component of the Company. The deferred income taxes
discussed above are classified in the condensed consolidated balance sheets under US GAAP as follows:
December 29, 2002 December 30, 2001
Non-current deferred tax assets
551
316
Non-current deferred tax liabilities
(471)
(578)
In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations". SFAS No. 143 addresses
legal obligations associated with the retirement of tangible long-lived assets that result from the acquisition, construction,
development or normal operation of long-lived assets. The standard requires that the fair value of a liability for an asset
retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.
Any associated asset retirement costs are to be capitalized as part of the carrying amount of the long-lived asset and
expensed over the life of the asset. SFAS No. 143 is required to be adopted by the Company effective January 1, 2003.
The Company has not yet determined what the effect of adopting SFAS No. 143 will be on its consolidated results of
operations, financial position or its cash flows.
In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB
Statement No. 13 and Technical Corrections." SFAS No. 145 rescinds SFAS No. 4, "Reporting Gains and Losses from
Extinguishment of Debt", which required that all gains and losses from extinguishment of debt be aggregated and
classified as an extraordinary item. SFAS No. 145 requires that gains and losses from extinguishment of debt be classified
as extraordinary only if they meet the criteria in Accounting Principles Board Opinion No. 30, "Reporting the Results of
OperationsReporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently
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