Seagate 2008 Annual Report Download - page 102
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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. Income Taxes
The provision for (benefit from) income taxes consisted of the following:
Income (loss) before income taxes consisted of the following:
The Company did not record a tax benefit associated with stock option deductions in fiscal year 2009. For fiscal year 2008 there were
$6 million of tax benefits recorded to Additional Paid-In Capital associated with stock option deductions. The Company did not record a tax
benefit associated with stock option deductions in fiscal year 2007.
The U.S. federal and state deferred tax expense in fiscal year 2009 was $295 million, primarily associated with increased valuation
allowance recorded for U.S. federal and state deferred tax assets associated with reductions in the Company's forecasted U.S. taxable income.
The U.S. federal and state deferred tax expense in fiscal year 2008 was $37 million. In fiscal year 2007, the deferred tax benefit of $359 million
included $319 million of deferred tax benefits resulting from the release of valuation allowance recorded in prior fiscal years. The fiscal year
2007 valuation allowance release was largely due to the completion during 2007 of the restructuring of the Company's intercompany
arrangements, which enabled the Company to forecast future U.S. taxable income with greater certainty and U.S. taxable income from the
intercompany sale of certain Maxtor assets. This 2007 valuation allowance release also included a reduction of $322 million in Maxtor goodwill
required as a result of the reversal of valuation allowance previously recorded as of the acquisition date against Maxtor related deferred tax
assets primarily for tax net operating loss carryovers.
100
Fiscal Years Ended
(Dollars in millions)
July 3,
2009
June 27,
2008
June 29,
2007
Current Tax Expense (Benefit):
U.S. Federal
$
2
$
8
$
6
U.S. State
3
10
(1
)
Foreign
—
26
8
Total Current
$
5
$
44
$
13
Deferred Tax Expense (Benefit):
U.S. Federal
$
291
$
34
$
(319
)
U.S. State
4
3
(40
)
Foreign
11
(14
)
(6
)
Total Deferred
$
306
$
23
$
(365
)
Provision for (benefit from) income taxes
$
311
$
67
$
(352
)
Fiscal Years Ended
(Dollars in millions)
July 3,
2009
June 27,
2008
June 29,
2007
U.S
$
(315
)
$
90
$
(125
)
Foreign
(2,460
)
1,239
686
$
(2,775
)
$
1,329
$
561