Seagate 2014 Annual Report Download - page 90
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
Deferredincometaxesreflectthenettaxeffectsoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreporting
purposesandtheamountsusedforincometaxpurposes.ThesignificantcomponentsoftheCompany'sdeferredtaxassetsandliabilitieswereasfollows:
Thedeferredtaxassetvaluationallowanceincreasedby$41millionin2015,anddecreasedby$101millionand$75million,infiscalyears2014and2013,
respectively.
AtJuly3,2015,theCompanyrecorded$612millionofnetdeferredtaxassets.Therealizationofthesedeferredtaxassetsisprimarilydependentonthe
Company'sabilitytogeneratesufficientU.S.taxableincomeinfutureperiods.Althoughrealizationisnotassured,theCompany'smanagementbelievesitismore
likelythannotthatthesedeferredtaxassetswillberealized.Theamountofdeferredtaxassetsconsideredrealizable,however,mayincreaseordecreasein
subsequentperiodswhentheCompanyreevaluatestheunderlyingbasisforitsestimatesoffutureU.S.andcertainnon-U.S.taxableincome.
AtJuly3,2015,theCompanyhadU.S.federal,stateandnon-U.S.taxnetoperatinglosscarryforwardsofapproximately$3.1billion,$1.8billionand
$133.3million,respectivelywhichwillexpireatvariousdatesbeginninginfiscalyear2016,ifnotutilized.U.S.statenetoperatinglosscarryforwardsof
approximately$25millionarescheduledtoexpireinfiscalyear2016.AtJuly3,2015,theCompanyhad
87
FiscalYearsEnded
(Dollarsinmillions)
July3,
2015
June27,
2014
Deferredtaxassets
Accruedwarranty $ 88 $ 99
Inventorycarryingvalueadjustments 43 49
Receivableallowance 16 15
Accruedcompensationandbenefits 106 103
Depreciation 171 140
Restructuringaccruals 4 4
Otheraccrualsanddeferreditems 31 39
Netoperatinglossesandtaxcreditcarry-forwards 1,099 1,081
Otherassets 5 8
Totaldeferredtaxassets 1,563 1,538
Valuationallowance (929) (888)
Netdeferredtaxassets 634 650
Deferredtaxliabilities
Unremittedearningsofcertainnon-U.S.entities (6) (14)
Acquisition-relateditems (15) (19)
Otherliabilities (1) (2)
Totaldeferredtaxliabilities (22) (35)
Totalnetdeferredtaxassets $ 612 $ 615
AsReportedontheBalanceSheet
Currentassets—deferredincometaxes $ 122 $ 126
Non-currentassets—deferredincometaxes 496 499
Othernon-currentliabilities (6) (10)
Totalnetdeferredincometaxes $ 612 $ 615