The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively. The complete annual reports, including the notes to the financial statements, are available online.
Instructions
Use the companies' financial information to answer the following questions.
a. What are the amounts of adidas's and Puma's provision for income taxes for the year 2015? Of each company's 2015 provision for income taxes, what portion is current expense and what portion is deferred expense?
b. What amount of cash was paid in 2015 for income taxes by adidas and by Puma?
c. What was the effective tax rate in 2015 for adidas and Puma? Why might their effective tax rates differ?
d. For year-end 2015, what amounts were reported by adidas and Puma as (1) gross deferred tax assets and (2) gross deferred tax liabilities?
e. Do either adidas or Puma disclose any net operating loss carrybacks and/or carryforwards at year-end 2015? What are the amounts, and when do the carryforwards expire?