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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 $101 million, $75 million and $82 million, in fiscal years 2014,
2013 and 2012, respectively. The valuation allowance decrease in fiscal year 2014 was primarily due to incremental future taxable income that
resulted from acquisition activity.
At June 27, 2014, the Company recorded $615 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.
88
Fiscal Years Ended
(Dollars in millions)
June 27,
2014
June 28,
2013
Deferred tax assets
Accrued warranty
$
99
$
112
Inventory valuation accounts
49
55
Receivable allowance
15
13
Accrued compensation and benefits
103
107
Depreciation
140
125
Restructuring accruals
Other accruals and deferred items
39
44
Net operating losses and tax credit carry
-
forwards
1,081
1,103
Other assets
1
1
1
1
1
1
Total deferred tax assets
1,538
1,570
Valuation allowance
(888
)
(989
)
1
1
1
1
1
1
Net deferred tax assets
650
581
1
1
1
1
1
1
Deferred tax liabilities
Unremitted earnings of certain non
-
U.S. entities
(14
)
(14
)
Acquisition
-
related items (DTL)
(19
)
(9
)
Other liabilities
(2
)
(4
)
1
1
1
1
1
1
Total deferred tax liabilities
(35
)
(27
)
1
1
1
1
1
1
Total deferred tax assets
$
615
$
554
1
1
1
1
1
1
1
1
1
1
1
1
As Reported on the Balance Sheet
Current assets
—
deferred income taxes
$
126
$
115
Non
-
current assets
—
deferred income taxes
499
456
Current liabilities
—
Accrued expenses
—
(
)
Other non
-
current liabilities
(10
)
(15
)
1
1
1
1
1
1
Total deferred income taxes
$
615
$
554
1
1
1
1
1
1
1
1
1
1
1
1