The main Irish unit of tech firm Analog Devices this year paid out dividends of $1.1 billion (€932 million).
That is according to new accounts for the Limerick-based Analog Devices International Unlimited which show that last year the company recorded pretax losses of $3.74 billion.
The 2020 pretax loss arose mainly from non-cash write-offs and amortisation of intangibles totalling $5.5 billion.
The company – one of the midwest’s largest employers – increased its revenue by 24 per cent from $3.84 billion to $4.77 billion in the 12 months to the end of October last.
Numbers employed last year dropped slightly to 1,252 and last year staff costs totalled $135.6 million.
The company's revenue includes sales of $1.3 billion to China, $1.2 billion to Europe, $934 million to 'rest of Asia', $850.3 million to the United States and $473.7 million to Japan.
The accounts disclose that the $1.1 billion dividend payout this year was made to Analog Devices Bermuda Ltd and Analog Devices Jersey International Unlimited.
The Limerick company received dividends of $63 million this year.
The $1.1 billion payout follows a dividend payout of $208.78 million last year.
Tax demand
Providing an update on the Revenue Commissioners’ 2018 tax demand of €43 million concerning fiscal 2013, a note states that “the company strongly disagrees with the magnitude of the assessment and maintains its transfer pricing was appropriate”.
“As of May 1st, 2021, the company has recorded a liability for an amount that is not material to the financial statements, related to this assessment.”
The note states that in the event that a settlement is not reached, the matter will proceed to the Tax Appeals Commission.
“If Irish Revenue were ultimately to prevail with respect to its assessment for fiscal 2013, such assessment would have a material unfavourable impact on the company’s income tax expense and net earnings in future periods.”
The note also discloses that during fiscal 2019, the Revenue commenced transfer-pricing audits for 2014, 2015 and 2016.
The company has received confirmation from Revenue concerning the fiscal 2014 audit and that no further tax assessment arose in respect of that period.
The note adds that the company settled the audits relating to fiscal 2015, 2016 and 2017 for additional tax payments that were not material to the financial statements. At the end of October last, shareholder funds at the company totalled $18 billion. The company’s cash funds totalled $660.3 million.
