Seagate 2015 Annual Report Download - page 93
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
AtJuly1,2016,theCompanyhadU.S.federal,stateandnon-U.S.taxnetoperatinglosscarryforwardsofapproximately$3.4billion,$2.1billionand
$121million,respectivelywhichwillexpireatvariousdatesbeginninginfiscalyear2018,ifnotutilized.U.S.statenetoperatinglosscarryforwardsof
approximately$104millionarescheduledtoexpireinfiscalyear2017.AtJuly1,2016,theCompanyhadU.S.federalandstatetaxcreditcarryforwardsof
$437millionand$96million,respectively,whichwillexpireatvariousdatesbeginninginfiscalyear2018,ifnotutilized.
AsofJuly1,2016,approximately$677millionoftheCompany'sU.S.netoperatinglossesand$99millionofitstaxcreditcarryforwardsaresubjecttoannual
limitationsfrom$1millionto$45millionpursuanttoU.S.taxlaw.
Forpurposesofthereconciliationbetweentheprovisionfor(benefitfrom)incometaxesatthestatutoryrateandtheeffectivetaxrate,theIrishstatutoryrate
of25%wasappliedasfollows:
AsubstantialportionoftheCompany'soperationsinMalaysia,Singapore,andThailandoperateundervarioustaxholidayprograms,whichexpireinwholeor
inpartatvariousdatesthrough2024.Certainofthetaxholidaysmaybeextendedifspecificconditionsaremet.Thenetimpactofthesetaxholidayprogramswas
toincreasetheCompany'snetincomebyapproximately$67millioninfiscalyear2016($0.22pershare,diluted),toincreasetheCompany'snetincomeby
approximately$349millioninfiscalyear2015($1.05pershare,diluted),andtoincreasetheCompany'snetincomebyapproximately$289millioninfiscalyear
2014($0.83pershare,diluted).
TheCompanyconsistsofanIrishtaxresidentparentholdingcompanywithvariousU.S.andnon-U.S.subsidiariesthatoperateinmultiplenon-Irishtaxing
jurisdictions.Theamountoftemporarydifferences(includingundistributedearnings)relatedtooutsidebasisdifferencesinthestockofnon-Irishresident
subsidiariesconsideredindefinitelyreinvestedoutsideofIrelandforwhichIrishincometaxeshavenotbeenprovidedasofJuly1,2016,wasapproximately
$1.6billion.IfsuchamountwereremittedtoIrelandasadividend,itislikelythattaxat25%orapproximately$400millionwouldresult.
AsofJuly1,2016andJuly3,2015,theCompanyhadapproximately$70millionand$83million,respectively,ofunrecognizedtaxbenefitsexcluding
interestandpenalties.Theamountofunrecognizedtaxbenefitsthat,ifrecognized,wouldimpacttheeffectivetaxrateare$70millionand$83millionasofJuly1,
2016andJuly3,2015,respectively,subjecttocertainfuturevaluationallowanceoffsets.
90
FiscalYearsEnded
(Dollarsinmillions)
July1,
2016
July3,
2015
June27,
2014
Provisionatstatutoryrate $ 69 $ 493 $ 389
NetU.S.federalandstateincometaxes 3 7 3
Permanentdifferences 10 2 3
Valuationallowance (1) 15 (100)
Non-U.S.losseswithnotaxbenefits 1 2 8
Non-U.S.earningstaxedatlessthanstatutoryrate (37) (463) (313)
Auditassessment — 173 —
Reversalofpreviouslyrecordedtaxes (19) (5) (19)
Otherindividuallyimmaterialitems — 4 15
Provisionfor(benefitfrom)incometaxes $ 26 $ 228 $ (14)