Reference no: EM132062727

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