Seagate 2010 Annual Report Download - page 95

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company recorded an excess tax benefit associated with stock option deductions in fiscal year 2011 of $2 million and no excess tax
benefits in 2010 or 2009.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. The significant components of the Company's deferred tax assets and
liabilities were as follows:
The deferred tax asset valuation allowance decreased by approximately $18 million in fiscal year 2011, decreased by approximately
$133 million in fiscal year 2010 and increased by approximately $864 million in fiscal year 2009.
At July 1, 2011, the Company recorded $462 million of net deferred tax assets. The realization of $455 million of these deferred tax assets
is primarily dependent on the Company's ability to generate sufficient U.S. and certain non-U.S. taxable income in future periods. Although
realization is not assured,
89
Fiscal Years Ended
(Dollars in millions)
July 1,
2011
July 2,
2010
Deferred tax assets
Accrued warranty
$
130
$
137
Inventory valuation accounts
68
54
Receivable reserves
18
16
Accrued compensation and benefits
117
147
Depreciation
126
145
Restructuring accruals
10
15
Other accruals and deferred items
50
51
Net operating losses and tax credit carry
-
forwards
1,087
1,085
Other assets
10
12
Total Deferred tax assets
1,616
1,662
Valuation allowance
(1,146
)
(1,164
)
Net Deferred tax assets
470
498
Deferred tax liabilities
Unremitted earnings of certain non-U.S.
entities
(8
)
(3
)
Trading Securities
—
Unrealized Gain
(2
)
—
Acquired intangible assets
—
(
3
)
Debt discount
—
(
10
)
Depreciation
(5
)
(9
)
Total Deferred tax liabilities
(15
)
(25
)
Net Deferred tax assets
455
473
Deferred taxes on inter
-
company
transactions
7
32
Total Deferred tax assets
$
462
$
505
As Reported on the Balance Sheet
Current assets
—
Deferred income taxes
$
99
$
118
Non
-
current assets
—
Deferred income taxes
374
395
Other current liabilities
(11
)
(8
)
Total Deferred income taxes
$
462
$
505