Company: CL
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000021665-25-000008
Chunk: 45

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 16
Chunk 45
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 Consolidated Financial Statements (continued)(Dollars in Millions Except Share and Per Share Amounts)

The components of deferred tax assets (liabilities) are as follows at December 31:  20242023Deferred tax liabilities: Goodwill and intangible assets$(389)$(412)Property, plant and equipment(397)(420)Right-of-use assets(126)(126)Deferred withholding tax(110)(96)Other(130)(34)Total deferred tax liabilities(1,152)(1,088)Deferred tax assets: Pension and other retiree benefits272 295 Tax credits and tax loss carryforwards430 356 Lease liabilities137 134 Accrued liabilities223 221 Stock-based compensation61 75 Research and Experimentation Capitalization108 87 Other101 60 Total deferred tax assets1,332 1,228 Valuation Allowance$(328)$(287)Net deferred tax assets$1,004 $941 Net deferred income taxes$(148)$(147)The changes in valuation allowance for deferred tax assets are as follows: 202420232022Balance, January 1$287 $129 $120 Additions     Charged to costs and expenses5615814Deductions15— 5Balance, December 31$328 $287 $129 As of December 31, 2024, the Company had net operating losses (“NOLs”) and capital loss carryforwards of $37. Of this amount, capital loss and NOL carryforwards of $6 will begin to expire in 2025 and NOLs of $13 can be carried forward indefinitely. The Company believes that it will be able to utilize these capital loss and NOL carryforwards. There is an additional NOL of $18 which has a full valuation allowance.As of December 31, 2024, the Company has $393 of tax credits, of which $66 will begin to expire in 2030 and $17 can be carried forward indefinitely.  The Company believes that it will be able to utilize these tax credits. The remaining credits of $310 have a full valuation allowance. Applicable U.S. income and foreign withholding taxes have been provided on substantially all of the Company’s accumulated earnings of foreign subsidiaries. Net tax expense of $55, net tax benefit of $19 and net tax expense of $164 were recorded directly through equity in 2024, 2023 and 202