This excerpt taken from the WDC 10-K filed Nov 20, 2006.
Income Tax (Benefit) Provision
The components of the (benefit) provision for income taxes were as follows for the three years ended June 30, 2006 (in millions):
Remaining net undistributed earnings from foreign subsidiaries at June 30, 2006 on which no U.S. tax has been provided amounted to approximately $834.7 million. The net undistributed earnings are intended to finance local operating requirements. Accordingly, an additional U.S. tax provision has not been made on these earnings.