S- I/A Table of Contents FIRST DATA CORPORATION NOTES TO TILE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Deferred lax assets and liabilities arc recognize) for the expected tax consequences of temporary differences between the book and tax bases of the Company's assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets are included in both "Other current assets" and "Other long-term assets" in the Company's Consolidated Balance Sheets. Deferred tax liabilities arc included in both "Other current liabilities" and "Long-term deferred tax liabilities" in the Company's Consolidated Balance Shetts. The following table outlines the principal components of deferred tax items: As of December 31, (In millions) 2014 2013 Defenvd tax assets related to: Reserves and other accrual expenses $ 266 $ 360 Pension obligations 13 Employee related liabilities 84 100 Deferred revenues 30 33 Net operating losses and tax credit carryfonvards 2,160 2,003 U.S. foreign tax credits on undistributed earnings 280 274 Foreign exchange (gain)/loss 52 69 Total deferred tax assets 2,872 2,852 Valuation allowance (1,694) (1,498) Realizable defected tax assets 1,178 1,354 Deferral tax liabilities related to: Property, equipment, and intangibles (1,083) (1,232) Pension obligations (2) Investment in affiliates and other (331) (426) Unrealized securities and hedging (gain)/lo (I) U.S. tax on foreign undistributed earnings (185) (140) Total deferred tax liabilities (1,601) (1.799) Net deferred tax liabilities $ (423) $ (445) The Company's deferred tax assets and liabilities were included in the Consolidated Balance Sheets as follows: As of December 31, (in nillions) 2014 2013 Current defemx1 tax assets $ 86 $ 103 Cunent deferral tax liabilities (6) (1) Long-term deferred tax assets 18 5 Long-term deferr