Symantec 2008 Annual Report Download - page 187

The principal components of deferred tax assets are as follows:
March 28,
2008
March 30,
2007
Year Ended
(In thousands)
Deferred tax assets:
Tax credit carryforwards . ................................... $ 29,452 $ 50,929
Net operating loss carryforwards of acquired companies ............. 180,095 211,888
Other accruals and reserves not currently tax deductible ............. 148,808 61,192
Deferred revenue.......................................... 77,161 50,499
Loss on investments not currently tax deductible .................. 15,845 16,177
Book over tax depreciation .................................. 18,542 1,331
State income taxes ........................................ 36,970 523
Convertible debt .......................................... 162,303 201,730
Other .................................................. 63,866 44,052
733,042 638,321
Valuation allowance ......................................... (38,253) (60,117)
Deferred tax assets ........................................ 694,789 578,204
Deferred tax liabilities:
Acquired intangible assets ................................... (474,159) (565,893)
Unremitted earnings of foreign subsidiaries ...................... (190,893) (163,103)
Other .................................................. — —
Net deferred tax (liabilities) assets ............................... $ 29,737 $(150,792)
Of the $38 million total valuation allowance provided against our deferred tax assets, approximately
$30 million is attributable to acquisition-related assets, the benefit of which will reduce goodwill when and if
realized. The valuation allowance decreased by $22 million in fiscal 2008; $19 million was reclassified to
unrecognized tax benefits within deferred taxes and $3 million was attributable to acquisition-related assets.
As of March 28, 2008, we have U.S. federal net operating loss and credit carryforwards attributable to various
acquired companies of approximately $216 million and $17 million, respectively, which, if not used, will expire
between fiscal 2016 and 2027. These net operating loss carryforwards are subject to an annual limitation under
Internal Revenue Code § 382, but are expected to be fully realized. Furthermore, we have U.S. state net operating
loss and credit carryforwards attributable to various acquired companies of approximately $290 million and
$12 million, respectively, which will expire in various fiscal years. In addition, we have foreign net operating loss
carryforwards attributable to various acquired foreign companies of approximately $705 million, which, under
current applicable foreign tax law, can be carried forward indefinitely.
As of March 28, 2008, no provision has been made for federal or state income taxes on $1.3 billion of
cumulative unremitted earnings of certain of our foreign subsidiaries, since we plan to indefinitely reinvest these
earnings. As of March 28, 2008, the unrecognized deferred tax liability for these earnings was $362 million.
In the March 2005 quarter, we repatriated $500 million from certain of our foreign subsidiaries under
provisions of the American Jobs Creation Act of 2004, or the Jobs Act, enacted in October 2004. We recorded a tax
charge for this repatriation of $54 million in the March 2005 quarter.
In May 2005, clarifying language was issued by the U.S. Department of Treasury and the Internal Revenue
Service, or IRS, with respect to the treatment of foreign taxes paid on the earnings repatriated under the Jobs Act and
in September 2005, additional clarifying language was issued regarding the treatment of certain deductions
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)