Symantec 2010 Annual Report Download - page 178

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U.S. federal rate of tax, in lieu of the 35% statutory rate. The final impact of this agreement is not yet known since
this relates to the taxability of earnings that are otherwise the subject of the tax years 2000-2001 transfer pricing
dispute, which in turn is being addressed in the U.S. Tax Court. To the extent that we owe taxes as a result of the
transfer pricing dispute, we anticipate that the incremental tax due from this negotiated agreement will decrease. We
currently estimate that the most probable outcome from this negotiated agreement will be that we will owe
$13 million or less, for which an accrual has already been made. We made a payment of $130 million to the IRS for
this matter in May 2006. We applied $110 million of this payment as a deposit on the outstanding transfer pricing
matter for the tax years 2000-2004.
Note 14. Earnings Per Share
Basic and diluted earnings per share are computed on the basis of the weighted average number of shares of
common stock outstanding during the period. Diluted earnings per share also includes the incremental effect of
dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential
common shares include shares underlying outstanding stock options, stock awards, warrants, and convertible notes.
The components of earnings per share are as follows:
April 2,
2010
April 3,
2009
March 28,
2008
Year Ended
(In millions, except per share data)
Net income (loss) per share — basic:
Net income (loss) ...................................... $714 $(6,786) $ 410
Net income (loss) per share — basic ........................ $0.88 $ (8.17) $0.47
Weighted-average outstanding common shares ................. 810 831 868
Net income (loss) per share — diluted:
Net income (loss) ...................................... $714 $(6,786) $ 410
Net income (loss) per share — diluted ....................... $0.87 $ (8.17) $0.46
Weighted-average outstanding common shares ................. 810 831 868
Shares issuable from assumed exercise of options............... 6 — 15
Dilutive impact of restricted stock and restricted stock units . . . .... 3 — 1
Total weighted-average shares outstanding — diluted ............ 819 831 884
The following potential common shares were excluded from the computation of diluted earnings per share, as
their effect would have been anti-dilutive:
April 2,
2010
(1)
April 3,
2009
(1)
March 28,
2008
(1)
Year Ended
(In millions)
Stockoptions.......................................... 47 61 66
Restricted stock units .................................... — 2 —
47 63 66
(1)
For these fiscal years, the effects of the warrants issued and the option purchased in connection with the
convertible Senior Notes were excluded because, as discussed in Note 8, they have no impact on diluted
earnings per share until our average stock price for the applicable period reaches $27.3175 per share and $19.12
per share, respectively.
102
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)