Tech Data 2015 Annual Report Download - page 65

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The valuation allowances at both January 31, 2015 and 2014 primarily relate to foreign net operating loss carryforwards. The Company’s net
operating loss carryforwards totaled $475.6 million and $617.9 million at January 31, 2015 and 2014, respectively. The majority of the net
operating losses have an indefinite carryforward period with the remaining portion expiring in fiscal years 2016 through 2034. The Company
considers all positive and negative evidence available in determining the potential of realizing deferred tax assets, including the scheduled
reversal of temporary differences, recent cumulative losses, recent and projected future taxable income, and prudent and feasible tax planning
strategies. In making this determination, the Company places greater emphasis on recent cumulative losses and recent taxable income due to
the inherent lack of subjectivity associated with these factors.
To the extent that the Company generates consistent taxable income within those operations with valuation allowances, the Company may
reduce the valuation allowances, thereby reducing the income tax expense and increasing net income in the period the determination was made.
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