Seagate 2012 Annual Report Download - page 92

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 $75 million, $82 million and $18 million, in fiscal years 2013, 2012
and 2011, respectively.
At June 28, 2013, the Company recorded $554 million of net deferred tax assets. The realization 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, the Company's management believes that it is more likely than not that these deferred tax assets will be realized. The amount of
deferred tax assets considered realizable, however, may increase or decrease in subsequent periods when the Company reevaluates the
underlying basis for its estimates of future U.S. and certain non-U.S. taxable income.
At June 28, 2013, the Company had U.S. federal, state and non-U.S. tax net operating loss carryforwards of approximately $2.8 billion,
$1.8 billion and $564 million, respectively, which will expire at
85
Fiscal Years Ended
(Dollars in millions)
June 28,
2013
June 29,
2012
Deferred tax assets
Accrued warranty
$
112
$
116
Inventory valuation accounts
55
68
Receivable reserves
13
18
Accrued compensation and benefits
107
117
Depreciation
125
112
Restructuring accruals
5
8
Other accruals and deferred items
44
45
Net operating losses and tax credit carry
-
forwards
1,103
1,074
Other assets
6
8
Total Deferred tax assets
1,570
1,566
Valuation allowance
(989
)
(1,064
)
Net Deferred tax assets
581
502
Deferred tax liabilities
Unremitted earnings of certain non
-
U.S. entities
(14
)
(11
)
Acquisition
-
Related Items (DTL)
(9
)
—
Other Liabilities
(4
)
(1
)
Total Deferred tax liabilities
(27
)
(12
)
Total Deferred tax assets
$
554
$
490
As Reported on the Balance Sheet
Current assets
—
Deferred income taxes
$
115
$
104
Non
-
current assets
—
Deferred income taxes
456
396
Current liabilities
—
Accrued expenses
(2
)
—
Other non
-
current liabilities
(15
)
(10
)
Total Deferred income taxes
$
554
$
490