Seagate 2014 Annual Report Download - page 91
Download and view the complete annual report
Please find page 91 of the 2014 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
U.S.federalandstatetaxcreditcarryforwardsof$387millionand$89million,respectively,whichwillexpireatvariousdatesbeginninginfiscalyear2016,ifnot
utilized.
AsofJuly3,2015,approximately$422millionand$90millionoftheCompany'stotalU.S.netoperatinglossandtaxcreditcarryforwards,respectively,are
subjecttoanaggregateannuallimitationof$46millionpursuanttoU.S.taxlaw.
Forpurposesofthereconciliationbetweentheprovisionfor(benefitfrom)incometaxesatthestatutoryrateandtheeffectivetaxrate,theIrishstatutoryrate
of25%wasappliedasfollows:
AsubstantialportionoftheCompany'soperationsinMalaysia,Singapore,andThailandoperateundervarioustaxholidayprograms,whichexpireinwholeor
inpartatvariousdatesthrough2022.Certainofthetaxholidaysmaybeextendedifspecificconditionsaremet.Thenetimpactofthesetaxholidayprogramswas
toincreasetheCompany'snetincomebyapproximately$349millioninfiscalyear2015($1.05pershare,diluted),toincreasetheCompany'snetincomeby
approximately$289millioninfiscalyear2014($0.83pershare,diluted),andtoincreasetheCompany'snetincomeby$338millioninfiscalyear2013($0.89per
share,diluted).
TheCompanyconsistsofanIrishtaxresidentparentholdingcompanywithvariousU.S.andnon-U.S.subsidiariesthatoperateinmultiplenon-Irishtaxing
jurisdictions.Theamountoftemporarydifferences(includingundistributedearnings)relatedtooutsidebasisdifferencesinthestockofnon-Irishresident
subsidiariesconsideredindefinitelyreinvestedoutsideofIrelandforwhichIrishincometaxeshavenotbeenprovidedasofJuly3,2015,wasapproximately
$3billion.IfsuchamountwereremittedtoIrelandasadividend,itislikelythattaxat25%orapproximately$750millionwouldresult.
AsofJuly3,2015andJune27,2014,theCompanyhadapproximately$83millionand$115million,respectively,ofunrecognizedtaxbenefitsexcluding
interestandpenalties.Theamountofunrecognizedtaxbenefits,ifrecognized,thatwouldimpacttheeffectivetaxrateis$83millionand$115millionasofJuly3,
2015andJune27,2014,respectively,subjecttocertainfuturevaluationallowanceoffsets.
88
FiscalYearsEnded
(Dollarsinmillions)
July3,
2015
June27,
2014
June28,
2013
Provisionatstatutoryrate $ 493 $ 389 $ 458
NetU.S.federalandstateincometaxes 7 3 12
Permanentdifferences 2 3 3
Valuationallowance 15 (100) (97)
Non-U.S.losseswithnotaxbenefits 2 8 27
Non-U.S.earningstaxedatlessthanstatutoryrate (463) (313) (414)
Auditassessment 173 — —
Otherindividuallyimmaterialitems (1) (4) 4
Provisionfor(benefitfrom)incometaxes $ 228 $ (14) $ (7)