Western Digital (WDC)

 

The Company accounts for income taxes under the asset and liability method, which provides that deferred tax assets and liabilities be recognized for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities and expected benefits of utilizing net operating loss (“NOL”) and tax credit carryforwards. The Company records a valuation allowance where it is more likely than not that the deferred tax assets will not be realized. Each period the Company evaluates the need for a valuation allowance for its deferred tax assets and adjusts the valuation allowance so that the Company records net deferred tax assets only to the extent that it has concluded it is more likely than not that these deferred tax assets will be realized.

 

As a result of the implementation of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109” (“FIN 48”), the Company recognized liabilities for uncertain tax positions based on the two-step process prescribed in FIN 48. To the extent a tax position does not meet a more-likely-than-not level of certainty, no benefit is recognized in the financial statements. If a position meets the more-likely-than-not level of certainty, it is recognized in the financial statements at the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties related to unrecognized tax benefits are recognized on liabilities recorded for uncertain tax positions and are recorded in the provision for income taxes. The actual liability for unrealized tax benefit in any such contingency may be materially different from the Company’s estimates, which could result in the need to record additional liabilities for unrecognized tax benefits or potentially adjust previously recorded liabilities for unrealized tax benefits.

 

 

The Company accounts for income taxes under the asset and
liability method, which provides that deferred tax assets and
liabilities be recognized for temporary differences between the
financial reporting basis and the tax basis of our assets and
liabilities and expected benefits of utilizing net operating
loss (“NOL”) and tax credit carryforwards. The Company
records a valuation allowance where it is more likely than not
that the deferred tax assets will not be realized. Each period
the Company evaluates the need for a valuation allowance for its
deferred tax assets and adjusts the valuation allowance so that
the Company records net deferred tax assets only to the extent
that it has concluded it is more likely than not that these
deferred tax assets will be realized.

 

As a result of the implementation of FASB Interpretation
No. 48, “Accounting for Uncertainty in Income
Taxes — an interpretation of FASB Statement
No. 109” (“FIN 48”), the Company
recognized liabilities for uncertain tax positions based on the
two-step process prescribed in FIN 48. To the extent a tax
position does not meet a more-likely-than-not level of
certainty, no benefit is recognized in the financial statements.
If a position meets the more-likely-than-not level of certainty,
it is recognized in the financial statements at the largest
amount that has a greater than 50% likelihood of being realized
upon ultimate settlement. Interest and penalties related to
unrecognized tax benefits are recognized on liabilities recorded
for uncertain tax positions and are recorded in the provision
for income taxes. The actual liability for unrealized tax
benefit in any such contingency may be materially different from
the Company’s estimates, which could result in the need to
record additional liabilities for unrecognized tax benefits or
potentially adjust previously recorded liabilities for
unrealized tax benefits.

 

 

The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for temporary differences between the financial reporting basis and the tax basis of the assets and liabilities and expected benefits of utilizing net operating loss (“NOL”) carryforwards. The Company records a valuation allowance where it is more likely than not that the deferred tax assets will not be realized. Each period the Company evaluates the need for a valuation allowance for the deferred tax assets and adjusts the valuation allowance so that the Company records net deferred tax assets only to the extent that it has concluded it is more likely than not that these deferred tax assets will be realized.

 

The Company records estimated liabilities for tax uncertainties. To the extent a tax position does not meet a probable level of certainty, a liability is established based on the best estimate of the amount that will not be sustained. However, the actual liability in any such contingency may be materially different from the estimates, which could result in the need to record additional tax liabilities or potentially adjust previously recorded tax liabilities.

 

 

The Company accounts for income taxes under the asset and liability method, which provides that deferred tax assets and liabilities be recognized for temporary differences between the financial reporting basis and the tax basis of the assets and liabilities and expected benefits of utilizing net operating loss (“NOL”) carryforwards. The Company records a valuation allowance where it is more likely than not that the deferred tax assets will not be realized. Each period the Company evaluates the need for a valuation allowance for the deferred tax assets and adjusts the valuation allowance so that the Company records net deferred tax assets only to the extent that it has concluded it is more likely than not that these deferred tax assets will be realized.

 

The Company records estimated liabilities for tax uncertainties. To the extent a tax position does not meet a probable level of certainty, a liability is established based on the best estimate of the amount that will not be sustained. However, the actual liability in any such contingency may be materially different from the estimates, which could result in the need to record additional tax liabilities or potentially adjust previously recorded tax liabilities.