13. INCOME TAXES

        The domestic (Singapore) and foreign components of income from continuing operations before income taxes were comprised of the following:

                                                                                                                                                                                    

        The provision for income taxes from continuing operations consisted of the following:

                                                                                                                                                                                    

        The domestic statutory income tax rate was approximately 17.0% in fiscal years 2015, 2014 and 2013. The reconciliation of the income tax expense from continuing operations expected based on domestic statutory income tax rates to the expense for income taxes included in the consolidated statements of operations is as follows:

                                                                                                                                                                                    

        A number of countries in which the Company is located allow for tax holidays or provide other tax incentives to attract and retain business. In general, these holidays were secured based on the nature, size and location of the Company's operations. The aggregate dollar effect on the Company's income resulting from tax holidays and tax incentives to attract and retain business for the fiscal years ended March 31, 2015, 2014 and 2013 was $9.8 million, $15.2 million and $22.6 million, respectively. The effect on basic earnings per share was $0.02 for both fiscal years ended March 31, 2015 and 2014, and $0.03 for the fiscal year ended March 31, 2013. The effect on diluted earnings per share was $0.02 for both fiscal years ended March 31, 2015 and 2014, and $0.03 for the fiscal year ended March 31, 2013. Unless extended or otherwise renegotiated, the Company's existing holidays will expire in the fiscal years ending March 31, 2016 through fiscal year 2022.

        Under its territorial tax system, Singapore generally does not tax foreign sourced income until repatriated to Singapore. The Company has included the effects of Singapore's territorial tax system in the rate differential line above. The tax effect of foreign income not repatriated to Singapore for the fiscal years 2014 and 2013 were $51.5 million and $26.7 million, respectively. Due to the lack of sufficient foreign source income, tax effect for the fiscal year 2015 was zero.

        The components of deferred income taxes are as follows:

                                                                                                                                                                                    

        Utilization of the Company's deferred tax assets is limited by the future earnings of the Company in the tax jurisdictions in which such deferred assets arose. As a result, management is uncertain as to when or whether these operations will generate sufficient profit to realize any benefit from the deferred tax assets. The valuation allowance provides a reserve against deferred tax assets that are not more likely than not to be realized by the Company. However, management has determined that it is more likely than not that the Company will realize certain of these benefits and, accordingly, has recognized a deferred tax asset from these benefits. The change in valuation allowance is net of certain increases and decreases to prior year losses and other carryforwards that have no current impact on the tax provision. Approximately $34.0 million of the valuation allowance relates to income tax benefits arising from the exercise of stock options, which if realized will be credited directly to shareholders' equity and will not be available to benefit the income tax provision in any future period.

        The Company has recorded deferred tax assets of approximately $2.4 billion related to tax losses and other carryforwards against which the Company has recorded a valuation allowance for all but $45.4 million of the deferred tax assets. These tax losses and other carryforwards, on a tax return basis, will expire at various dates as follows:

                                                                                                                                                                                    

        The amount of deferred tax assets considered realizable, however, could be reduced or increased in the near-term if facts, including the amount of taxable income or the mix of taxable income between subsidiaries, differ from management's estimates.

        The Company does not provide for income taxes on approximately $800.0 million of undistributed earnings of its subsidiaries which are considered to be indefinitely reinvested outside of Singapore as management has plans for the use of such earnings to fund certain activities outside of Singapore. Determination of the amount of the unrecognized deferred tax liability on these undistributed earnings is not practicable. During the fiscal year 2015, we changed our intent with regard to the indefinite reinvestment of foreign earnings from certain of our Chinese subsidiaries which are scheduled to be de-registered or liquidated in the near future. As a result, we provided for applicable foreign withholding taxes on $145.9 million of undistributed foreign earnings for 2015 and prior years, and recorded a deferred tax liability of approximately $12.6 million.

        A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

                                                                                                                                                                                    

        The Company's unrecognized tax benefits are subject to change over the next twelve months primarily as a result of the expiration of certain statutes of limitations and as audits are settled. The Company believes it is reasonably possible that the total amount of unrecognized tax benefits could decrease by an estimated range of $25 million to $52 million within the next twelve months primarily due to potential settlements of various audits and the expiration of certain statutes of limitations.

        The Company and its subsidiaries file federal, state, and local income tax returns in multiple jurisdictions around the world. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2005.

        Of the $222.4 million of unrecognized tax benefits at March 31, 2015, $186.8 million will affect the annual effective tax rate if the benefits are eventually recognized. The amount that does not impact the effective tax rate relates to positions that would be settled with a tax loss carryforward previously subject to a valuation allowance.

        The Company recognizes interest and penalties accrued related to unrecognized tax benefits within the Company's tax expense. During the fiscal years ended March 31, 2015, 2014 and 2013, the Company recognized interest and penalties of approximately $2.5 million and $8.4 million and $5.1 million, respectively. The Company had approximately $17.0 million, $15.6 million and $11.9 million accrued for the payment of interest and penalties as of the fiscal years ended March 31, 2015, 2014 and 2013, respectively.