Seagate 2010 Annual Report Download - page 94

Table of Contents
SEAGATE TECHNOLOGY PLC
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:
During fiscal year 2011, the Company recorded an income tax provision of $68 million which includes non-U.S. income tax expense for
income tax reserves recorded for non-U.S. income tax positions taken in prior fiscal years partially offset by tax benefits for the release of
income tax reserves associated with settlements of income tax audits and the expiration of certain statutes of limitation. The U.S. federal and
state net deferred tax expense recorded in fiscal year 2011 included taxes on intercompany transactions.
The U.S. federal and state net deferred tax benefit recorded in fiscal year 2010 of $35 million included $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.
During the fiscal year ended July 2, 2010, an enacted legislative change in U.S. tax law was taken into account in computing the Company's
income tax provision. The Worker, Homeownership, and Business Assistance Act of 2009, was enacted on November 6, 2009. This law allowed
the Company to elect an increased carryback period for net operating losses incurred in 2008 or 2009 from two years to three, four, or five years
at the Company's option. The Company recorded an $11 million income tax benefit as result of the increased carryback period.
88
Fiscal Years Ended
(Dollars in millions)
July 1,
2011
July 2,
2010
July 3,
2009
Current tax expense (benefit):
U.S. Federal
$
(6
)
$
(14
)
$
2
U.S. State
—
1
3
Non
-
U.S.
28
9
—
Total Current
22
(4
)
5
Deferred tax expense (benefit):
U.S. Federal
23
(37
)
291
U.S. State
3
2
4
Non
-
U.S.
20
(1
)
11
Total Deferred
46
(36
)
306
Provision for (benefit from) income
taxes
$
68
$
(40
)
$
311
Fiscal Years Ended
(Dollars in millions)
July 1,
2011 July 2, 2010 July 3, 2009
U.S.
$
100
$
58
$
(354
)
Non
-
U.S
479
1,511
(2,460
)
$
579
$
1,569
$
(2,814
)