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IncomeTaxes
Werecordedanincometaxprovisionof$228millionforfiscalyear2015comparedtoanincometaxbenefitof$14millionforfiscalyear2014.Ourfiscal
year2015incometaxprovisionincludedapproximately$193millionofnetincometaxexpenseduetothefinalauditassessmentreceivedfromtheJiangsu
ProvinceStateTaxBureauofthePeople'sRepublicofChina(Chinaassessment)forcalendaryears2007through2013.Ourfiscalyear2014benefitfromincome
taxesincluded$58millionofincometaxbenefitsrelatedtothereversalofaportionofthevaluationallowancesrecordedinpriorperiodsandanetdecreaseintax
reservesrelatedtoauditsettlementsoffsetbytaxreservesonnon-U.S.taxpositionstakeninpriorfiscalyears.
Ourincometaxprovisionrecordedforfiscalyear2015differedfromtheprovisionforincometaxesthatwouldbederivedbyapplyingtheIrishstatutoryrate
of25%toincomebeforeincometaxes,primarilyduetotheneteffectof(i)taxbenefitsrelatedtonon-U.S.earningsgeneratedinjurisdictionsthataresubjecttotax
holidaysortaxincentiveprogramsandareconsideredindefinitelyreinvestedoutsideofIreland,(ii)taxexpenseassociatedwiththeChinaassessmentrecorded
duringtheDecember2014quarter,and(iii)anincreaseinvaluationallowanceforcertaindeferredtaxassets.TheacquisitionofLSI'sFlashBusinessdidnothave
amaterialimpactonoureffectivetaxrate.Ourincometaxbenefitrecordedforfiscalyear2014differedfromtheprovisionforincometaxesthatwouldbederived
byapplyingtheIrishstatutoryrateof25%toincomebeforeincometaxes,primarilyduetotheneteffectof(i)taxbenefitsrelatedtonon-U.S.earningsgenerated
injurisdictionsthataresubjecttotaxholidaysortaxincentiveprogramsandareconsideredindefinitelyreinvestedoutsideofIreland,and(ii)adecreasein
valuationallowanceforcertaindeferredtaxassets.TheacquisitionofXyratexdidnothaveamaterialimpactonoureffectivetaxrateinfiscalyear2014.Fiscal
year2014includedavaluationallowancereleaseassociatedwithpost-acquisitionrestructuring.
LiquidityandCapitalResources
Thefollowingsectionsdiscussourprincipalliquidityrequirements,aswellasoursourcesandusesofcashandourliquidityandcapitalresources.Ourcash
andcashequivalentsaremaintainedininvestmentswithremainingmaturitiesof90daysorlessatthetimeofpurchase.Ourshort-terminvestmentsconsist
primarilyofmoneymarketfundsandcertificatesofdeposits.Theprincipalobjectivesofourinvestmentpolicyarethepreservationofprincipalandmaintenanceof
liquidity.Webelieveourcashequivalentsandshort-terminvestmentsareliquidandaccessible.Weoperateinsomecountriesthathaverestrictiveregulationsover
themovementofcashand/orforeignexchangeacrosstheirborders.However,theserestrictionshavenotimpededourabilitytoconductourbusiness,nordowe
expectthemtointhenext12months.Wearenotawareofanydowngrades,lossesorothersignificantdeteriorationinthefairvalueofourcashequivalentsor
short-terminvestmentsandwedonotbelievethefairvalueofourshort-terminvestmentshassignificantlychangedfromthevaluesreportedasofJuly1,2016.
CashandCashEquivalentsandShort-termInvestments
53
FiscalYearsEnded
(Dollarsinmillions)
July3,
2015
June27,
2014 Change
%
Change
Provisionfor(benefitfrom)incometaxes $ 228 $ (14) $ 242 1,729%
Asof
(Dollarsinmillions)
July1,
2016
July3,
2015 Change
Cashandcashequivalents $ 1,125 $ 2,479 $ (1,354)
Short-terminvestments 6 6 —
Total $ 1,131 $ 2,485 $ (1,354)