Seagate 2015 Annual Report Download - page 92
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
Deferredincometaxesreflectthenettaxeffectsoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreporting
purposesandtheamountsusedforincometaxpurposes.ThesignificantcomponentsoftheCompany'sdeferredtaxassetsandliabilitieswereasfollows:
ConsistentwiththeintentofASU2015-17tosimplifythepresentationofdeferredincometaxes,theCompanyelectedtoadoptASU2015-17onaprospective
basisasofthesecondquarter,fiscalyear2016.Priorperiodswerenotretrospectivelyadjusted.Asaresultofthischangeinaccountingprinciple,theCompany's
currentdeferredtaxassetswerereclassifiedtonon-current.
Thedeferredtaxassetvaluationallowanceincreasedby$55millionand$41millioninfiscalyears2016and2015,respectively,anddecreasedby
$101millioninfiscalyear2014.
AtJuly1,2016,theCompanyrecorded$606millionofnetdeferredtaxassets.Therealizationofthesedeferredtaxassetsisprimarilydependentonthe
Company'sabilitytogeneratesufficientU.S.andcertainnon-U.S.taxableincomeinfutureperiods.Althoughrealizationisnotassured,theCompany's
managementbelievesitismorelikelythannotthatthesedeferredtaxassetswillberealized.Theamountofdeferredtaxassetsconsideredrealizable,however,
mayincreaseordecreaseinsubsequentperiodswhentheCompanyreevaluatestheunderlyingbasisforitsestimatesoffutureU.S.andcertainnon-U.S.taxable
income.
89
FiscalYearsEnded
(Dollarsinmillions)
July1,
2016
July3,
2015
Deferredtaxassets
Accruedwarranty $ 74 $ 88
Inventorycarryingvalueadjustments 32 43
Receivableallowance 11 16
Accruedcompensationandbenefits 85 106
Depreciation 173 171
Restructuringaccruals 14 4
Otheraccrualsanddeferreditems 50 31
Netoperatinglossesandtaxcreditcarry-forwards 1,252 1,099
Otherassets 2 5
Totaldeferredtaxassets 1,693 1,563
Valuationallowance (984) (929)
Netdeferredtaxassets 709 634
Deferredtaxliabilities
Unremittedearningsofcertainnon-U.S.entities (11) (6)
Acquisition-relateditems (92) (15)
Otherliabilities — (1)
Totaldeferredtaxliabilities (103) (22)
Totalnetdeferredtaxassets $ 606 $ 612
AsReportedontheBalanceSheet
Currentassets—deferredincometaxes $ — $ 122
Non-currentassets—deferredincometaxes 616 496
Othernon-currentliabilities (10) (6)
Totalnetdeferredincometaxes $ 606 $ 612