Symantec 2012 Annual Report Download - page 116

allowance involves assumptions, judgments, and estimates, including forecasted earnings, future taxable income,
and the relative proportions of revenue and income before taxes in the various domestic and international
jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation
allowance in a period, we reflect the change with a corresponding increase or decrease to our tax provision in our
Consolidated Statements of Income.
In July 2008, we reached an agreement with the IRS concerning our eligibility to claim a lower tax rate on a
distribution made from a Veritas foreign subsidiary prior to the July 2005 acquisition. The distribution was
intended to be made pursuant to the American Jobs Creation Act of 2004, and therefore eligible for a 5.25%
effective U.S. federal rate of tax, in lieu of the 35% statutory rate. The final impact of this agreement remains
uncertain since this relates to the taxability of earnings that are otherwise the subject of the transfer pricing matters
at issue in the IRS examination of Veritas tax years 2002 through 2005. To the extent that we owe taxes as a result
of these transfer pricing matters in years prior to the distribution, 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.
RESULTS OF OPERATIONS
Total net revenue
2012 vs. 2011 2011 vs. 2010
Fiscal
2012 $ %
Fiscal
2011 $ %
Fiscal
2010
($ in millions)
Content, subscription, and maintenance revenue . . . $5,823 $581 11% $5,242 $217 4% $5,025
Percentage of total net revenue ................. 87% 85% 84%
License revenue ............................ $ 907 $(41) (4)% $ 948 $ (12) (1)% $ 960
Percentage of total net revenue ................. 13% 15% 16%
Total net revenue ............................ $6,730 $540 9% $6,190 $205 3% $5,985
Content, subscription, and maintenance revenue increased for fiscal 2012, as compared to fiscal 2011,
primarily due to growth in revenue from our Security and Compliance segment of $339 million, Consumer
segment of $152 million, and Storage and Server Management segment of $131 million, offset by a decrease in
our Services segment of $41 million.
Content, subscription, and maintenance revenue increased for fiscal 2011, as compared to fiscal 2010, due to
growth in revenue from our Security and Compliance segment of $139 million, Consumer segment of $70
million, and Storage and Server Management segment of $61 million, offset by a decrease in our Services
segment of $52 million.
License revenue includes revenue from software licenses, appliances, and certain revenue sharing
arrangements. License revenue decreased for fiscal 2012, as compared to fiscal 2011, primarily due to decreases
from our Storage and Server Management segment of $29 million and Security and Compliance segment of $12
million.
License revenue decreased for fiscal 2011, as compared to fiscal 2010, primarily due to decreases in revenue
from our Storage and Server Management segment of $41 million, partially offset by increases in revenues from
the Security and Compliance segment of $17 million and from the Consumer segment of $13 million.
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