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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Income Tax Provision
The components of the provision for income taxes were as follows for the three years ended June 27, 2014 (in
millions):
2014 2013 2012
Current:
Foreign ....................................................... $ 47 $ 57 $ 12
Domestic-federal ................................................ 98 149 98
Domestic-state ................................................. 3 1 1
Deferred:
Foreign ....................................................... (3) (7) 18
Domestic-federal ................................................ (14) (46) 25
Domestic-state ................................................. 4 88 (9)
Income tax provision ............................................. $135 $242 $145
The Company’s income tax provision for 2013 reflects a tax benefit of $37 million as a result of the retroactive
extension of the U.S. Federal research and experimentation tax credit (“R&D credit”) that was signed into law on
January 2, 2013 as part of the American Taxpayer Relief Act of 2012. The R&D credit, which had previously expired
on December 31, 2011, was extended through December 31, 2013. In addition, the Company recorded an $88 mil-
lion charge to reduce its previously recognized California deferred tax assets in 2013 as a result of the enactment of
California Proposition 39.
Remaining net undistributed earnings from foreign subsidiaries at June 27, 2014 on which no U.S. tax has been
provided amounted to $8.2 billion. The net undistributed earnings are intended to finance local operating require-
ments and capital investments. Accordingly, an additional U.S. tax provision has not been made on these earnings.
The tax liability for these earnings would be $2.7 billion if the Company repatriated the $8.2 billion in undistributed
earnings from the foreign subsidiaries.
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