Initial Letter Date |
Form filed |
Market Capitalization |
10/10/2013 |
10-K |
$ 4,790 M |
We note that you have recognized $[xx] million of net US foreign tax credits and federal and state net operating losses as of December 29, 2012. In future filings, please expand your disclosures to provide investors with more specific information to allow investors to understand the realizability of these assets as seen through the eyes of management. For example: Please quantify the net deferred tax asset for US foreign tax credits, federal net operating losses, and state net operating losses, as different sources of income are required to be generated to realize each asset. Please address your consideration of future domestic results and the book domestic losses before income taxes recognized as it relates to US foreign tax credits, federal net operating losses, and state net operating losses. In this regard, US foreign tax credits can be applied only to foreign source earnings and only after federal net operating losses have been utilized. Please disclose the amount of US domestic taxable income and US foreign source income you are required to generate to realize the net operating losses and the US foreign tax credits. In addition, please disclose the amount of US domestic taxable income and US foreign source income you recognized for fiscal year 2012 to provide investors with context for the total amounts you are required to generate to realize these assets. Please clarify that the gains you anticipate realizing from the sale of the land is of the same character to realize the federal and state net operating losses. Please clarify if your assessment of the realizability of these net deferred tax assets is based on your ability to implement tax planning strategies. To the extent that it is, please provide investors with a description of the tax planning strategies that you are able to implement to realize these deferred tax assets. Please refer to Item 303(a)(3) of Regulation S-K and Section 501.14 of the Financial Reporting Codification for guidance. Please provide us with the disclosure you would have included in your fiscal year 2012 Form 10-K in response to this comment. |