Avnet 2015 Annual Report Download - page 64
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Please find page 64 of the 2015 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
9. Income taxes
Thecomponents of income taxexpense(“taxprovision”)areincludedinthe table below. Thetaxprovisionfordeferred
income taxes results from temporary differences arising primarily from net operating losses, inventories valuation, receivables
valuation,certainaccruedamountsanddepreciationandamortization,netofanychangestovaluationallowances.
Years Ended
July 2, 2016 June 27, 2015 June 28, 2014
(Thousands)
Current:
Federal $ 29,511 $ 41,757 $ 71,714
Stateandlocal 4,634 4,496 8,038
Foreign 114,746 76,363 91,415
Totalcurrenttaxes 148,891 122,616 171,167
Deferred:
Federal 4,305 39,246 11,305
Stateandlocal 2,277 5,264 3,810
Foreign 8,505 (26,074) (30,759)
Totaldeferredtaxes 15,087 18,436 (15,644)
Incometaxexpense $ 163,978 $ 141,052 $ 155,523
ThetaxprovisioniscomputedbaseduponincomebeforeincometaxesfrombothU.S.andforeignoperations.U.S.income
beforeincometaxeswas$115.2million,$180.6millionand$235.4million,andforeignincomebeforeincometaxeswas$555.3
million,$532.3millionand$465.7millioninfiscal2016,2015and2014,respectively.
Reconciliationsofthefederalstatutorytaxratetotheeffectivetaxratesareasfollows:
Years Ended
July 2, 2016 June 27, 2015 June 28, 2014
U.S.federalstatutoryrate 35.0 % 35.0 % 35.0 %
Stateandlocalincometaxes,netoffederalbenefit 0.4 1.6 1.3
Foreigntaxrates,netofvaluationallowances (10.3) (8.8) (9.3)
Releaseofvaluationallowance,netofU.S.taxexpense (1.4) (7.2) (4.8)
Changeincontingencyreserves (0.6) 0.5 (0.1)
Taxauditsettlements (0.2) (2.3) (0.6)
Other,net 1.6 1.0 0.7
Effectivetaxrate 24.5 % 19.8 % 22.2 %
ForeigntaxratesrepresentstheimpactofthedifferencebetweenforeignandU.S.federalstatutoryratesappliedtoforeign
income or loss and also includes the impact of valuation allowances established against the Company’s otherwise realizable
foreigndeferredtaxassets,whichareprimarilynetoperatinglosscarry-forwards.
Avnet’seffectivetaxrateonincomebeforeincometaxeswas24.5%infiscal2016ascomparedwithaneffectivetaxrateof
19.8% in fiscal 2015. Included in the fiscal 2016 effective tax rate is a net tax benefit of $15.1 million, whichis 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
expirationofstatutesoflimitation.Thefiscal2016effectivetaxrateishigherthanthefiscal2015
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