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TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
9. Income taxes
Thecomponents of income taxexpense(“taxprovision”)areincludedinthe table below. Thetaxprovisionfordeferred
income taxes results from temporary differences arising primarily from net operating losses, inventories valuation, receivables
valuation,certainaccruedamountsanddepreciationandamortization,netofanychangestovaluationallowances.
   
Years Ended
 July 2, 2016  June 27, 2015  June 28, 2014
(Thousands)
Current:    
Federal $ 29,511  $ 41,757  $ 71,714 
Stateandlocal 4,634  4,496  8,038 
Foreign 114,746 76,363 91,415
Totalcurrenttaxes 148,891 122,616 171,167
Deferred:    
Federal 4,305  39,246  11,305 
Stateandlocal 2,277  5,264  3,810 
Foreign 8,505  (26,074) (30,759)
Totaldeferredtaxes 15,087 18,436  (15,644)
Incometaxexpense $ 163,978 $ 141,052 $ 155,523
ThetaxprovisioniscomputedbaseduponincomebeforeincometaxesfrombothU.S.andforeignoperations.U.S.income
beforeincometaxeswas$115.2million,$180.6millionand$235.4million,andforeignincomebeforeincometaxeswas$555.3
million,$532.3millionand$465.7millioninfiscal2016,2015and2014,respectively.
Reconciliationsofthefederalstatutorytaxratetotheeffectivetaxratesareasfollows:
   
Years Ended
 July 2, 2016 June 27, 2015 June 28, 2014
U.S.federalstatutoryrate  35.0 % 35.0 % 35.0 %
Stateandlocalincometaxes,netoffederalbenefit 0.4  1.6  1.3 
Foreigntaxrates,netofvaluationallowances (10.3) (8.8) (9.3)
Releaseofvaluationallowance,netofU.S.taxexpense  (1.4) (7.2) (4.8)
Changeincontingencyreserves (0.6) 0.5  (0.1)
Taxauditsettlements (0.2) (2.3) (0.6)
Other,net 1.6 1.0 0.7
Effectivetaxrate 24.5 % 19.8 % 22.2 %
ForeigntaxratesrepresentstheimpactofthedifferencebetweenforeignandU.S.federalstatutoryratesappliedtoforeign
income or loss and also includes the impact of valuation allowances established against the Company’s otherwise realizable
foreigndeferredtaxassets,whichareprimarilynetoperatinglosscarry-forwards.
Avnet’seffectivetaxrateonincomebeforeincometaxeswas24.5%infiscal2016ascomparedwithaneffectivetaxrateof
19.8% in fiscal 2015. Included in the fiscal 2016 effective tax rate is a net tax benefit of $15.1 million, whichis comprised
primarily of (i) a tax benefit of $9.2 million for the release of a valuation allowance against deferred tax assets that were
determined to be realizable, and (ii) a net tax benefit of $9.5 million primarily related to favorable audit settlements and the
expirationofstatutesoflimitation.Thefiscal2016effectivetaxrateishigherthanthefiscal2015
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