Symantec 2012 Annual Report Download - page 180

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
The $55 million total valuation allowance provided against our deferred tax assets as of March 30, 2012 is
attributable to acquisition-related assets and net operating losses in foreign jurisdictions. The valuation allowance
increased by a net of $10 million in fiscal 2012, related mostly to credits in foreign jurisdictions and net
operating losses in foreign jurisdictions subject to a valuation allowance.
As of March 30, 2012, we have U.S. federal net operating losses attributable to various acquired companies
of approximately $120 million, which, if not used, will expire between fiscal 2013 and 2032. 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 $314 million and $24 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 $404 million net of valuation allowances, which, under current applicable foreign
tax law, can be carried forward indefinitely.
In assessing the ability to realize our deferred tax assets, we considered whether it was more likely than not
that some portion or all the deferred tax assets will not be realized. We considered the following: we have
historical cumulative book income, as measured by the current and prior two years, we have strong, consistent
taxpaying history, we have substantial U.S. federal income tax carryback potential; and we have substantial
amounts of scheduled future reversals of taxable temporary differences from our deferred tax liabilities. We have
concluded that this positive evidence outweighs the negative evidence and, thus, that the deferred tax assets as of
March 30, 2012 of $528 million, after application of the valuation allowances described above, are realizable on
a “more likely than not” basis.
As of March 30, 2012, no provision has been made for federal or state income taxes on $2.4 billion of
cumulative unremitted earnings of certain of our foreign subsidiaries since we plan to indefinitely reinvest these
earnings. As of March 30, 2012, the unrecognized deferred tax liability for these earnings was $730 million.
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