Crucial 2015 Annual Report Download - page 84

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82
Income Taxes
For the year ended 2015 2014 2013
Income before income taxes, net income attributable to noncontrolling
interests and equity in net income (loss) of equity method investees:
Foreign $ 2,431 $ 2,619 $ 839
U.S. 178 114 446
$ 2,609 $ 2,733 $ 1,285
Income tax (provision) benefit:
Current:
Foreign $ (93) $ (46) $ (17)
State (1)(2) —
U.S. federal 6 (3) —
(88)(51)(17)
Deferred:
Foreign (85)(81) 9
U.S. federal 15 4 —
State 1 — —
(69)(77) 9
Income tax (provision) benefit $ (157) $ (128) $ (8)
Income tax (provision) benefit computed using the U.S. federal statutory rate reconciled to income tax (provision) benefit
was as follows:
For the year ended 2015 2014 2013
U.S. federal income tax (provision) benefit at statutory rate $ (913) $ (956) $ (450)
Change in unrecognized tax benefits (118)(152) 2
Foreign tax rate differential 515 474 339
Change in valuation allowance 260 544 (418)
Noncontrolling investment transactions 57 — —
Tax credits 53 11 36
State taxes, net of federal benefit 19 (39) 6
Gain on MMJ Acquisition — (11) 520
Transaction costs related to the MMJ Acquisition — — (38)
Other (30) 1 (5)
Income tax (provision) benefit $ (157) $ (128) $ (8)
We operate in tax jurisdictions, including Singapore and Taiwan, where our earnings are indefinitely reinvested and are
taxed at lower effective tax rates than the U.S. statutory rate. We operate in a number of locations outside the U.S., including
Singapore and, to a lesser extent, Taiwan, where we have tax incentive agreements that are, in part, conditional upon meeting
certain business operations and employment thresholds. The effect of tax incentive arrangements, which expire in whole or in
part at various dates through 2030, reduced our tax provision for 2015, 2014, and 2013 by $338 million (benefitting our diluted
earnings per share by $0.29), $286 million ($0.24 per diluted share), and $141 million ($0.13 per diluted share), respectively.