Seagate 2009 Annual Report Download - page 96

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. Income Taxes
The provision for (benefit from) income taxes consisted of the following:
Income (loss) before income taxes consisted of the following:
All fiscal year 2008 and fiscal year 2009 information in this Note 6 has been retroactively restated for the impacts of ASC 470-20, Debt
with Conversion and Other Options .
U.S. federal current tax benefit of $14 million included the $11 million benefit from the net operating loss ("NOL") Carryback described
below. The Company did not record an excess tax benefit associated with stock option deductions in fiscal year 2010 or 2009. For fiscal year
2008, there were $6 million of excess tax benefits recorded to Additional paid-in capital associated with stock option deductions.
The U.S. federal and state net deferred tax benefit recorded in fiscal year 2010 of $35 million includes $55 million of deferred tax benefit
from the reversal of a portion of the U.S. valuation allowance recorded in fiscal year 2009. The valuation allowance reversal recorded in fiscal
year 2010 resulted from revisions to the Company's forecasts of U.S. taxable income. The U.S. federal and state deferred tax expense in fiscal
year 2009 of $295 million resulted primarily from recording additional valuation allowance for U.S. federal and state deferred tax assets.
90
Fiscal Years Ended
(Dollars in millions) July 2,
2010
July 3,
2009
(1)
June 27,
2008
(1)
Current tax expense (benefit):
U.S. Federal
$
(14
)
$
2
$
8
U.S. State
1
3
10
Non
-
U.S.
9
—
26
Total Current
(4
)
5
44
Deferred tax expense (benefit):
U.S. Federal
(37
)
291
34
U.S. State
2
4
3
Non
-
U.S.
(1
)
11
(14
)
Total Deferred
(36
)
306
23
Provision for (benefit from) income
taxes
$
(40
)
$
311
$
67
(1) As adjusted due to a required change in the accounting for convertible debt instruments implemented in the
first quarter of fiscal year 2010, applied on a retrospective basis.
Fiscal Years Ended
(Dollars in millions)
July 2,
2010
July 3,
2009
(1)
June 27,
2008
(1)
U.S
$
58
$
(354
)
$
79
Non
-
U.S.
1,511
(2,460
)
1,239
$
1,569
$
(2,814
)
$
1,318
(1) As adjusted due to a required change in the accounting for convertible debt instruments implemented in the
first quarter of fiscal year 2010, applied on a retrospective basis.