Pallet-Management-Services - AFM

| ANNUAL REPORT 2006 | IFCO SYSTEMS N.V. |
Components of the Company’s net deferred tax assets and
liabilities are as follows:
US $ in thousands At December 31,
2006 2005
Deferred income tax assets:
Carryforward losses 57,301 31,434
Capitalized RPC cost 9,428 9,349
Interest limitation 6,118 6,348
Stock option deductions 1,621 –
Loss from discontinued operations 477 844
Patent 144 160
Allowance for doubtful accounts 324 672
Inventory basis differences 172 365
Other accruals and reserves 2,497 3,470
Other 4,322 4,627
Subtotal deferred income tax assets 82,404 57,269
Netted with deferred income tax liabilities (71,751) (50,428)
Total deferred income tax assets 10,653 6,841
Deferred income tax liabilities:
Accelerated depreciation 68,930 43,318
Loan costs 1,463 1,659
Other 5,813 8,247
Subtotal deferred income tax liabilities 76,206 53,224
Netted with deferred income tax assets (71,751) (50,428)
Total deferred income tax liabilities 4,455 2,796
Deferred income tax asset, net 6,198 4,045
The stock option deductions (US $1.6 million) and the relating
effects to net operating losses (US $0.8 million) had been
recorded to equity (US $2.4 million) as well as the foreign
currency adjustments. All other changes are recorded in income.
At December 31, 2006, the Company has net corporate
operating loss carryforwards available as follows:
US $ in thousands Amount
Germany 212,703
United States 101,770
Other European countries 49,084
Total 363,557
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