Symantec 2009 Annual Report Download - page 159

The principal components of deferred tax assets are as follows:
April 3,
2009
March 28,
2008
Year Ended
(In thousands)
Deferred tax assets:
Tax credit carryforwards . ................................... $ 19,774 $ 29,452
Net operating loss carryforwards of acquired companies ............. 202,077 180,095
Other accruals and reserves not currently tax deductible ............. 160,097 148,808
Deferred revenue.......................................... 56,843 77,161
Loss on investments not currently tax deductible .................. 21,802 15,845
Book over tax depreciation .................................. 27,349 18,542
State income taxes ........................................ 43,043 36,970
Convertible debt .......................................... 122,875 162,303
Other .................................................. 73,290 63,866
Goodwill ............................................... 77,013 —
804,163 733,042
Valuation allowance ......................................... (101,513) (38,253)
Deferred tax assets ........................................ 702,650 694,789
Deferred tax liabilities:
Intangible assets .......................................... (377,387) (474,159)
Unremitted earnings of foreign subsidiaries ...................... (206,557) (190,893)
Other .................................................. — —
Net deferred tax assets ....................................... $118,706 $ 29,737
Of the $101 million total valuation allowance provided against our deferred tax assets, approximately
$89 million is attributable to acquisition-related assets. When SFAS No. 141(R) becomes effective in the first
quarter of our fiscal year 2010, the benefits attributable to our valuation allowance will reduce income tax expense
when and if realized. The valuation allowance increased by $63 million in fiscal 2009, $56 million was attributable
to certain Irish deferred tax assets that will require an extended period of time to realize, $6 million was attributable
to capital losses, and $1 million was attributable to acquisition-related assets.
As of April 3, 2009, we have U.S. federal net operating loss and credit carryforwards attributable to various
acquired companies of approximately $186 million and $5 million, respectively, which, if not used, will expire
between fiscal 2010 and 2029. 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 $250 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 $349 million net of valuation
allowances, which, under current applicable foreign tax law, can be carried forward indefinitely.
As a result of the impairment of goodwill, we have cumulative pre-tax book losses, as measured by the current
and prior two years. We considered the negative evidence of this cumulative pre-tax book loss position on our ability
to continue to recognize deferred tax assets that are dependent upon future taxable income for realization. We
considered the following as positive evidence: the vast majority of the goodwill impairment is not deductible for tax
purposes and thus will not result in tax losses; we have a strong, consistent taxpaying history; we have substantial
U.S. federal income tax carryback potential; and we have substantial amounts of scheduled future reversals of
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)